Why This Amazon ETF Plunged Last Friday

By Todd Shriber – Feb 10, 2026 at 3:35PM ESTKey PointsAmazon coughed, and this ETF caught the flu.Believe it or not, this volatile fund performed as expected.This ETF’s intraday tumble is a reminder that leverage cuts both ways.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: AMZUDirexion Shares ETF Trust - Direxion Daily Amzn Bull 2x SharesToday's Changeangle-down(-1.69%) $0.47Current Price$27.42Price as of February 10, 2026 at 4:00 PM ETAmazon's post-earnings pullback resulted in a big slide for this geared ETF, reminding investors of the risks associated with these funds.Shares of Amazon (AMZN 0.80%) tumbled Friday after the company told investors it's planning to spend a staggering $200 billion this year, with its Amazon Web Services (AWS) unit being a focal point of those expenditures. That signals the company's bullishness on artificial intelligence (AI). Investors are apprehensive about a spending plan that exceeds the market values of many companies, and those jitters explain why Amazon and exchange-traded funds (ETFs) with hefty allocations to the stock faltered on Friday. Amazon's post-earnings slide spelled trouble for this ETF. Image source: Getty Images. Things were even worse for Amazon-dedicated single-stock ETFs. Just look at the Direxion Daily AMZN Bull 2x Shares ETF (AMZU 1.69%). In late trading, that leveraged ETF is down 14% on volume more than six times the daily average. Even the most risk-tolerant traders shouldn't be surprised by this geared ETF's Friday woes. Here's why that's the case. First, the Direxion ETF is what it claims to be. It's designed to deliver 200% of the daily performance of Amazon shares. So with that stock down 7% at this writing, this ETF's 14% drop confirms that it's behaving as expected today. Second, traders considering any leveraged product need to focus on the operative: "daily." The issuer doesn't shy away from that terminology, and the lesson there is that market participants shouldn't ignore it, either. Put another way, while Amazon stock itself is a viable candidate for inclusion in long-term portfolios, this ETF isn't. ExpandNASDAQ: AMZUDirexion Shares ETF Trust - Direxion Daily Amzn Bull 2x SharesToday's Change(-1.69%) $-0.47Current Price$27.42Key Data PointsDay's Range$27.27 - $28.9252wk Range$21.28 - $46.88Volume4.8M Leveraged ETFs, including the Amazon fund, pursue daily objectives. Again, the issuer comes right out and says this. The takeaway is that this Amazon ETF and other single-stock ETFs will perform as expected over a day or even a few days, but hoping these products to behave like the underlying stock over long-term holding periods is a potentially ruinous strategy. Bottom line: Investors believing in Amazon's long-term story can use the Friday pullback to their advantage to add the stock. Active traders who say that retrenchment went too far, too fast may want to examine the Direxion ETF as a near-term rebound candidate. Just don't hold it for more than a day or two.Stocks MentionedDirexion Shares ETF Trust - Direxion Daily Amzn Bull 2x SharesNASDAQ: AMZU$27.42 (1.69%) $0.47AmazonNASDAQ: AMZN$207.05 (0.80%) $1.67*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.