Exploring Alternatives to Amazon: 4 ETFs That Might Be a Better Investment Choice
Amazon's Stock Performance: Amazon.com Inc’s shares are struggling due to tariffs, slow growth in core areas, and rising competition, with a growth rate of just over 2% compared to the Nasdaq 100 Index's 11%+ growth in 2025.
ETFs as Investment Solutions: For investors looking to balance exposure to Amazon while reducing risks, various ETFs like the Consumer Discretionary Select Sector SPDR Fund and Vanguard Consumer Discretionary Index Fund offer diversified options that include Amazon alongside other major retailers.
Targeted Retail ETFs: More focused retail investments can be made through ETFs such as the VanEck Retail ETF and First Trust Dow Jones Internet Index Fund, which also feature Amazon prominently, allowing investors to benefit from its performance while mitigating risks.
Long-Term Outlook for Amazon: Despite recent underperformance and concerns about market share loss, Amazon remains a key player in e-commerce and cloud computing; ETFs provide a way for investors to engage with Amazon's potential while avoiding the volatility associated with investing heavily in a single stock.
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- Massive Losses: OpenAI's net loss ballooned from $5 billion in 2024 to $39 billion in 2025, primarily due to heavy investments in AI model development and compute capacity, indicating significant financial pressure amid intensifying competition.
- R&D Expenditure: The company spent a total of $34 billion last year, including $19 billion on research and development and nearly $6 billion on sales and marketing, reflecting its substantial commitment to technological innovation and market expansion.
- IPO Plans: OpenAI confidentially filed for an IPO with U.S. regulators last week, although it has not disclosed the offering size or terms, it is anticipated to target a valuation of up to $1 trillion, showcasing its ambitions in the capital markets.
- Restructuring Impact: The high loss figure was largely attributed to non-cash accounting charges related to its prior structure following its transition to a for-profit corporation, which is not expected to recur, thereby potentially improving the company's financial health moving forward.
- Market Underestimation: JPMorgan highlights that the market continues to underestimate Broadcom's significant advantages in advanced packaging design, intellectual property, and execution, despite overstated concerns from the supply chain, indicating a solid market position.
- Cash Tender Offer Pricing: Broadcom has set a $2.5 billion cap for cash tender offers on six series of senior notes, a move that strengthens its capital structure and supports future investments, reflecting a proactive approach to financial management.
- AI Chip Development On Track: JPMorgan confirms that Broadcom's AI chip development timeline remains on track and encourages investors to buy aggressively at current levels, anticipating a 38% upside, which reflects confidence in the company's future growth potential.
- Wall Street's Positive Outlook: According to Koyfin data, 44 out of 48 analysts covering Broadcom rate it as 'Buy' or 'Strong Buy', indicating widespread optimism about the company's future performance, despite a nearly 7% decline in stock price recently.
- Massive Investment: Nvidia announced a $2 billion investment in Nebius in March 2023 to accelerate the construction of its data centers and AI factories, demonstrating strong confidence in AI infrastructure and expected to enhance Nebius's market competitiveness.
- Significant Revenue Growth: Nebius reported $399 million in revenue for Q1 2026, an almost 8-fold increase year-over-year, primarily driven by robust performance in its data center business, indicating a surge in demand within the AI and high-performance computing sectors.
- Robot Delivery Market Potential: Nebius's Avride segment achieved a 178% increase in deliveries in Q1, totaling 174,000 robots, and is poised to benefit from the rapid expansion of the delivery robot market, projected to grow from $686 million to $7.6 billion.
- Long-Term Growth Outlook: Nebius aims to achieve over 4 GW of contracted data center power capacity by the end of 2026, which is expected to significantly scale its operations, with analysts forecasting substantial revenue growth in the coming years, further solidifying its leadership in the AI sector.
- Stock Performance: SpaceX's stock surged 36% within a week of its IPO, surpassing Amazon in market capitalization and becoming the fifth most valuable company globally, reflecting strong investor confidence in Elon Musk's rocket venture.
- Acquisition Details: SpaceX has finalized a $60 billion acquisition of AI startup Cursor, which boasts an annual recurring revenue of $2.6 billion, enhancing SpaceX's competitive edge in AI, particularly against OpenAI and Anthropic.
- Revenue Growth: In 2025, SpaceX generated $18 billion in revenue, with projections to potentially double in 2026 due to contracts with Anthropic and Alphabet, although the profit margins remain uncertain, keeping market expectations high.
- Market Valuation: With a market cap of $2.8 trillion, SpaceX's valuation appears steep given its revenue and lack of profits, prompting investors to exercise caution regarding its future performance, especially amid liquidity constraints post-IPO.
- Portfolio Analysis: During the June Monthly Meeting, Jim Cramer and Jeff Marks provided an in-depth analysis of 35 portfolio stocks, highlighting their preference for Intel due to its significant upside potential in data center CPU growth, particularly in the context of competition with TSMC.
- Tech Giants Restructuring: Cramer noted a reordering of the 'Magnificent Seven,' with newcomers like SpaceX and the yet-to-go-public Anthropic and OpenAI emerging as formidable competitors, indicating intensified market competition, especially in the AI sector.
- Strengths of Alphabet and Apple: Alphabet is positioned advantageously in the AI era with its YouTube and Waymo businesses, while Apple leverages its ecosystem of over 2.5 billion iPhone users to strengthen its AI partnership with Alphabet, showcasing both companies' robust market positions.
- Market Dynamics and Investment Strategy: Despite challenges faced by Meta and Microsoft, Cramer advises maintaining investments in Amazon and Nvidia, believing that the latter's GPU demand will continue to grow, and that Amazon's cloud business remains highly profitable.
- Historic IPO: SpaceX went public on June 12 with a valuation of $1.77 trillion, marking the largest IPO in history, and its current market cap has surged to $2.59 trillion, making it the fourth most valuable company globally, reflecting strong market expectations for its future growth.
- Valuation Risks: Despite SpaceX's market cap being 139 times its projected 2025 revenue, concerns arise over its high valuation as an unprofitable company, with a 33% revenue growth rate in 2025, particularly since its space and AI divisions remain in the red.
- Impact on AI Market: The IPO has drawn significant investor attention, leading to declines of 7% and 8% in Nvidia and Broadcom stocks over the past month, respectively, indicating that investors may be cashing out from high-flying AI stocks to fund their SpaceX purchases.
- Future IPO Implications: The performance of SpaceX's stock will set the tone for upcoming AI IPOs like OpenAI and Anthropic; if SpaceX maintains its high valuation, it could encourage frothy pricing for these IPOs, whereas a drop below its IPO price might lead to more conservative pricing strategies.









