by Ian Cooper
About 90 days from now, we’ll be in the middle of the 2025 holiday season.
Yet, retailers are already launching early holiday sales, as millions of people start shopping early ahead of the rush. And, according to CBS News, about half of Americans plan to start holding shopping early. In fact, according to CBS News, “49% of holiday shoppers plan to start buying gifts before Halloween.”
So, what’s the best way to trade the holiday sales kickoff?
Here are three ideas you may want to consider.
Amazon (AMZN)
In most years, Amazon is a no-brainer stock to buy and hold for the holiday rush. In fact, with the exception of 2022, the ecommerce giant has historically pushed higher heading into the holidays, which we expect to happen again this year.
Plus, according to Salesforce, online spending for the holidays is expected to jump 2.1% to $288 billion. While that’s slower that the 4% jump we saw last year, it’s still a healthy number. In addition, recent earnings have also been strong. In its second quarter, EPS of $1.68 beat by 35 cents. Revenue of $167.7 billion, up 13.3% year over year, beat by $5.59 billion.
Amplify Online Retail ETF (IBUY)
With an expense ratio of 0.65%, the Amplify Online Retail ETF (SYM: IBUY) should benefit from an expected surge in e-commerce spending, especially with holdings in Affirm Holdings (SYM: AFRM), Amazon (SYM: AMZN), BigCommerce Holdings (SYM: BIGC), Apple (SYM: AAPL) and Netflix (SYM: NFLX) – a few heavyweights on the list.
The ETF tracks the EQM Online Retail Index, whose holdings derive at least 70% of revenues, or a minimum of $100 billion in annual sales from online and/or virtual sales.
Direxion Daily AMZN Bull 1.5x Shares (AMZU)
The Direxion Daily AMZN Bull 1.5x Shares (SYM: AMZU) is another interesting opportunity. With an expense ratio of 1.06%, this ETF offers single-stock exposure to Amazon. With this one, the fund seeks 150% daily leveraged investment results.
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