Exploring Alternatives to Amazon: 4 ETFs That Might Be a Better Investment Choice
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 19 2025
0mins
Should l Buy GOOGL?
Source: Benzinga
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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOGL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 303.580
Low
305.00
Averages
374.25
High
400.00
Current: 303.580
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Laurene Powell Jobs Invests in AI Startups Amid Bubble Fears
- Investment Activity: Laurene Powell Jobs' Emerson Collective participated in a $1 billion fundraising for World Labs, indicating that ultra-wealthy families are actively investing in AI despite concerns over a potential bubble in the market.
- Product Innovation: World Labs' first product, Marble, enables users to create and edit 3D world models using text and image prompts, showcasing the application potential of AI technology in creative fields, which may attract more user and investor interest.
- Market Trends: According to Crunchbase data, AI-related startups raised a total of $171 billion in February, pushing the overall startup funding from all investors to a record $189 billion for the month, reflecting strong market confidence in AI technology.
- Risks and Opportunities: Although former Google CEO Eric Schmidt warned of hacking risks associated with AI models, he remains optimistic about the long-term economic returns of AI, suggesting that investors are willing to take risks, which reflects confidence in the future development of AI.
See More
OpenAI Surpasses $25 Billion in Annual Revenue
- Significant Revenue Growth: OpenAI has reportedly surpassed $25 billion in annualized revenue as of last month, reflecting a 17% increase from last year's $21.4 billion, indicating strong market demand and business expansion in the AI sector.
- Increased Competitive Pressure: Despite impressive revenue growth, OpenAI faces stiff competition from Anthropic, which is targeting an almost 180% revenue increase within a year, putting pressure on OpenAI's market position.
- Funding Surge: In February, global startup funding reached $189 billion, with OpenAI leading the round at $110 billion, showcasing strong investor interest and confidence in the AI sector.
- Market Share Concentration: OpenAI, Anthropic, and Alphabet's Waymo collectively accounted for 83% of the venture capital raised in February, highlighting their dominant positions in the venture capital market.
See More
Trade Desk Shares Surge: What’s Driving the Recovery of These Struggling Stocks?
- Stock Performance: Trade Desk's stock experienced a significant increase early Thursday.
- OpenAI Collaboration: The rise in stock is attributed to reports of OpenAI discussing potential advertising collaboration on its ChatGPT platform.
See More
Meta Downgraded Amid AI Investment Concerns
- Downgrade Reason: Arete downgraded Meta from 'Buy' to 'Neutral' due to concerns that heavy investments in AI infrastructure may impact profitability, indicating pressure on the company's ability to convert spending into revenue.
- Spending vs. Revenue: Arete highlighted that Meta's spending trajectory is rapidly increasing, with projected capital expenditures between $115 billion and $135 billion in 2026, significantly up from $72.2 billion in 2025, which could pressure profit margins.
- Competitive Disadvantage: Meta appears to be lagging behind competitors like Alphabet and Amazon in third-party demand, and despite significant investments in AI development, financial returns remain limited, potentially affecting its market position.
- Cost Control Risks: Arete warned that Meta's aggressive spending cycle could reverse the cost discipline established post-2022, suggesting that the streamlined spending period may be ending as the company pushes further into AI, impacting long-term financial health.
See More
Investment Opportunities in AI Stocks
- Broadcom's Market Strategy: Broadcom is enhancing its competitive edge in the AI chip market by collaborating with Alphabet to develop Tensor Processing Units (TPUs) and signing a $21 billion deal with Anthropic to supply nearly 1 million AI chips, positioning itself as a key player in AI infrastructure.
- Lam Research's Growth Potential: Lam Research reported fourth-quarter revenue of $5.34 billion in 2025, a 22.3% increase year-over-year, with net income of $1.59 billion, indicating strong performance in semiconductor manufacturing equipment and expected benefits from the acceleration of AI technology.
- TSMC's Technological Advantage: TSMC achieved net revenue of $122.4 billion in 2025, a 35.9% increase, with 60% of its revenue coming from 3-nanometer and 5-nm chips, reinforcing its leadership position in the high-end chip market and driving profitability.
- Value of a Diversified Portfolio: By investing in Broadcom, Lam Research, and TSMC, investors can achieve diversification in the AI sector, leveraging the specialized capabilities of these companies to collectively drive stable growth in their investment portfolios.
See More
Congress Urges Investigation into Pentagon's Supply Chain Risk Designation for Anthropic
- Congressional Inquiry: A bipartisan coalition of 30 former defense and intelligence officials has sent a letter to Congress demanding an investigation into the Pentagon's designation of Anthropic as a supply chain risk, arguing that this move could undermine the U.S.'s competitive edge in the AI sector.
- Security Risk Warning: The coalition characterized Defense Secretary Pete Hegseth's decision as a 'profound departure' that sets a dangerous precedent, potentially affecting the operational environment for American businesses in the technology sector.
- Industry Backlash: Several defense tech companies have been instructed to cease using Anthropic's Claude service, indicating the immediate impact of the government's ban on industry operations and the potential disruption of technological collaborations.
- Call for Legal Oversight: The coalition urges Congress to exercise its oversight authority against the inappropriate use of executive power, emphasizing the need for legal safeguards to protect American companies from punitive actions for disagreeing with the government.
See More
Laurene Powell Jobs Invests in AI Startups Amid Bubble Fears
- Investment Activity: Laurene Powell Jobs' Emerson Collective participated in a $1 billion fundraising for World Labs, indicating that ultra-wealthy families are actively investing in AI despite concerns over a potential bubble in the market.
- Product Innovation: World Labs' first product, Marble, enables users to create and edit 3D world models using text and image prompts, showcasing the application potential of AI technology in creative fields, which may attract more user and investor interest.
- Market Trends: According to Crunchbase data, AI-related startups raised a total of $171 billion in February, pushing the overall startup funding from all investors to a record $189 billion for the month, reflecting strong market confidence in AI technology.
- Risks and Opportunities: Although former Google CEO Eric Schmidt warned of hacking risks associated with AI models, he remains optimistic about the long-term economic returns of AI, suggesting that investors are willing to take risks, which reflects confidence in the future development of AI.
See More
OpenAI Surpasses $25 Billion in Annual Revenue
- Significant Revenue Growth: OpenAI has reportedly surpassed $25 billion in annualized revenue as of last month, reflecting a 17% increase from last year's $21.4 billion, indicating strong market demand and business expansion in the AI sector.
- Increased Competitive Pressure: Despite impressive revenue growth, OpenAI faces stiff competition from Anthropic, which is targeting an almost 180% revenue increase within a year, putting pressure on OpenAI's market position.
- Funding Surge: In February, global startup funding reached $189 billion, with OpenAI leading the round at $110 billion, showcasing strong investor interest and confidence in the AI sector.
- Market Share Concentration: OpenAI, Anthropic, and Alphabet's Waymo collectively accounted for 83% of the venture capital raised in February, highlighting their dominant positions in the venture capital market.
See More
Trade Desk Shares Surge: What’s Driving the Recovery of These Struggling Stocks?
- Stock Performance: Trade Desk's stock experienced a significant increase early Thursday.
- OpenAI Collaboration: The rise in stock is attributed to reports of OpenAI discussing potential advertising collaboration on its ChatGPT platform.
See More
Meta Downgraded Amid AI Investment Concerns
- Downgrade Reason: Arete downgraded Meta from 'Buy' to 'Neutral' due to concerns that heavy investments in AI infrastructure may impact profitability, indicating pressure on the company's ability to convert spending into revenue.
- Spending vs. Revenue: Arete highlighted that Meta's spending trajectory is rapidly increasing, with projected capital expenditures between $115 billion and $135 billion in 2026, significantly up from $72.2 billion in 2025, which could pressure profit margins.
- Competitive Disadvantage: Meta appears to be lagging behind competitors like Alphabet and Amazon in third-party demand, and despite significant investments in AI development, financial returns remain limited, potentially affecting its market position.
- Cost Control Risks: Arete warned that Meta's aggressive spending cycle could reverse the cost discipline established post-2022, suggesting that the streamlined spending period may be ending as the company pushes further into AI, impacting long-term financial health.
See More
Investment Opportunities in AI Stocks
- Broadcom's Market Strategy: Broadcom is enhancing its competitive edge in the AI chip market by collaborating with Alphabet to develop Tensor Processing Units (TPUs) and signing a $21 billion deal with Anthropic to supply nearly 1 million AI chips, positioning itself as a key player in AI infrastructure.
- Lam Research's Growth Potential: Lam Research reported fourth-quarter revenue of $5.34 billion in 2025, a 22.3% increase year-over-year, with net income of $1.59 billion, indicating strong performance in semiconductor manufacturing equipment and expected benefits from the acceleration of AI technology.
- TSMC's Technological Advantage: TSMC achieved net revenue of $122.4 billion in 2025, a 35.9% increase, with 60% of its revenue coming from 3-nanometer and 5-nm chips, reinforcing its leadership position in the high-end chip market and driving profitability.
- Value of a Diversified Portfolio: By investing in Broadcom, Lam Research, and TSMC, investors can achieve diversification in the AI sector, leveraging the specialized capabilities of these companies to collectively drive stable growth in their investment portfolios.
See More
Congress Urges Investigation into Pentagon's Supply Chain Risk Designation for Anthropic
- Congressional Inquiry: A bipartisan coalition of 30 former defense and intelligence officials has sent a letter to Congress demanding an investigation into the Pentagon's designation of Anthropic as a supply chain risk, arguing that this move could undermine the U.S.'s competitive edge in the AI sector.
- Security Risk Warning: The coalition characterized Defense Secretary Pete Hegseth's decision as a 'profound departure' that sets a dangerous precedent, potentially affecting the operational environment for American businesses in the technology sector.
- Industry Backlash: Several defense tech companies have been instructed to cease using Anthropic's Claude service, indicating the immediate impact of the government's ban on industry operations and the potential disruption of technological collaborations.
- Call for Legal Oversight: The coalition urges Congress to exercise its oversight authority against the inappropriate use of executive power, emphasizing the need for legal safeguards to protect American companies from punitive actions for disagreeing with the government.
See More
