Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods. If you don't have the resources, time or inclination to constantly monitor and manage your positions, leveraged and inverse ETFs are not for you.

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in AMZN.

Shares of e-commerce giant Amazon.com Inc. (Ticker: AMZN) have been on a tear since the April 21 low. But despite the success in the stock price, the company has yet to exceed its record highs going back to February at 242.52. With earnings now out of the way, can this stock return to its former glory?

Can Amazon Rebound After a Cloud Slowdown?

Amazon remains a dominant force in e-commerce, cloud computing, and artificial intelligence. With its industry-leading Amazon Web Services (AWS) platform, the company powers a significant portion of the internet’s infrastructure. Amazon’s advancements in AI, including tools like SageMaker and Alexa, position it as a leader in the tech sector.

Its core businesses—e-commerce, AWS, and digital advertising—drive a loyal customer base and substantial market share globally. Additionally, Amazon’s ventures into logistics, with innovations like drone delivery and automated warehouses, and its expansion into healthcare and entertainment through Amazon Pharmacy and Prime Video, underscore its diversified growth strategy.

Amazon’s growth hinges on scaling AWS, enhancing AI capabilities, and optimizing its logistics network. Strategic investments in AI infrastructure, partnerships with enterprises, and global expansion of its fulfillment centers bolster its long-term outlook. Moreover, projects like Project Kuiper, aimed at providing satellite-based internet, could spark new growth avenues.
Traders that think Amazon can make a run back at its all-time highs may find a trade with Direxion’s Daily AMZN Bull 2X Shares (Ticker: AMZU), which seeks daily investment results, before fees and expenses, of 200% of the performance of Amazon.com Inc. common stock (Ticker: AMZN).

Below is a daily chart of AMZN as of August 7, 2025.

Source: TradingView.com

Candlestick charts display the high and low (the stick) and the open and close price (the body) of a security for a specific period. If the body is filled, it means the close was lower than the open. If the body is empty, it means the close was higher than the open.

The performance data quoted represents past performance. Past performance does not guarantee future results.

Navigating Regulatory and Competitive Challenges

Amazon faces challenges, including regulatory scrutiny over antitrust concerns, data privacy, and labor practices. Investigations in the U.S., Europe, and other regions could lead to fines, operational restrictions, or structural changes, impacting profitability.

Growing competition from e-commerce players like Walmart, Shopify, and international rivals, as well as cloud competitors like Microsoft Azure and Google Cloud, could pressure Amazon’s market share, especially if competitors offer more cost-effective or innovative solutions. In response, Amazon’s leadership has emphasized reinvesting profits into innovation and efficiency to maintain its edge.

There are growing concerns that Amazon is falling behind its competitors on the cloud front, and in the event the stock is in the process of topping out instead, Direxion’s Daily AMZN Bear 1X Shares (Ticker: AMZD), which seeks daily investment results, before fees and expenses, of 100% of the inverse performance in common shares of Amazon.com Inc. (Ticker: AMZN) could provide an opportunity to take advantage on the downside.

*Definitions and Index Descriptions

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with AMZN and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with AMZN and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to AMZN is impacted by AMZN’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to AMZN at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to AMZN increases on days when AMZN is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with AMZN and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to AMZN is impacted by AMZN’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to AMZN at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to AMZN increases on days when AMZN is volatile near the close of the trading day.

Amazon.com, Inc. Investing Risk — Amazon.com, Inc. faces risks associated with intense competition across different industries, including physical, e-commerce omni channel retail, e-commerce services, web and infrastructure computing services, electronic devices, digital content, advertising, grocery, and transportation and logistics services; the expansion into new products, services, technologies and geographic regions; its international activities; the variability in the demand for its products and services; fraudulent and unlawful activities of sellers; intellectual property rights; successfully optimizing and operating its fulfilment network and data centers; data loss or other security breaches; maintaining and hiring necessary key management personnel; maintaining good supplier relationships; the success of acquisitions or joint ventures or other investments; its rapidly evolving and expanding business model; and legal, regulatory, tax liability and litigation issues.

Consumer Discretionary Sector Risk —Companies in the consumer discretionary sector are tied closely to the performance of the overall domestic and international economy, including the functioning of the global supply chain, interest rates, competition and consumer confidence.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily AMZN Bear 1X Shares, Shorting or Inverse Risk. Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

ALPS Distributors, Inc.