24/7 Wall St. Quick Read AMZU lost 23.15% over the past year while Amazon dropped only 1.64%. Volatility decay eroded 20 percentage points beyond what 2x leverage predicts. The fund holds just 13.57% in direct Amazon equity. Daily rebalancing of derivatives creates compounding drag that destroys long-term returns. Amazon gained 3.63% year-to-date but AMZU lost 13.99%. This 21-percentage-point shortfall stems from daily leverage resets during choppy markets. If you’re thinking about retiring or kno ...

Core Viewpoint - The technology sector, while buoyed by innovations like artificial intelligence, is facing significant pressure, with Amazon.com Inc. managing to navigate these challenges but raising questions about its stock performance [1] Group 1: Market Performance - Year-to-date, Amazon's stock has gained just under 9%, lagging behind the S&P 500's nearly 11% increase [2] - Since April 21, when AMZN stock closed at $167.32, it has surged over 42% [2] - In early August, AMZN stock rose above its 50-day moving average after a brief downturn [2] Group 2: Business Fundamentals - Amazon is competing in the satellite internet market, projected to be worth $40 billion by 2030, through its Project Kuiper initiative [4] - Despite strong earnings and revenue, AMZN stock experienced a decline due to concerns over a slowdown in its cloud business, Amazon Web Services (AWS) [5] - CEO Andy Jassy clarified that the slowdown was related to capacity rather than demand, which helped restore some momentum in the stock [6] Group 3: Consumer Engagement - Amazon's extended Prime Day sales event resulted in record sales, but internal data indicated that U.S. Prime membership sign-ups fell short of last year's totals and the company's targets [7] Group 4: Investment Products - Direxion offers ETFs for both bullish and bearish investors regarding AMZN stock, with AMZU seeking 200% of AMZN's daily performance and AMZD seeking the inverse [9] - The AMZU ETF shows a robust technical profile, trading above its 50 and 200-day moving averages, but faces resistance at $42 [12] - The AMZD ETF is down 13% for the year, reflecting the negative performance of AMZN stock [14]