ProShares UltraPro QQQ ETF TQQQ
Price target: Members Only
Would like to see it defend 66.00.
The “Magnificent Seven” are significantly underperforming in 2026. Roundhill’s Magnificent Seven ETF, $MAGS, has returned just 2.6% year to date, including dividends, compared with a 10.9% gain for the S&P 500 and a 19% gain for the Nasdaq.What’s Happening?
A few factors are at play, the biggest one is the broadening market. Money has rotated into semiconductors, memory stocks, industrials, financials, healthcare and smaller companies. On several recent sessions, the equal weight S&P 500 and Russell 2000 have outperformed even while mega cap technology weakened.
Second, investors are questioning AI spending. Microsoft, Meta, Amazon and Alphabet are spending enormous amounts on AI infrastructure. The market is no longer rewarding spending announcements automatically, it wants evidence that the spending will produce sufficient revenue and margins.
The Opportunity in Tech for the Second Half of the Year
Technology has remained strong even without meaningful participation from several of its largest companies, which means an eventual recovery in the Magnificent Seven could therefore provide another leg higher for the Nasdaq 100. If the current technology leaders remain strong while previously lagging mega cap stocks begin catching up, the index could benefit from both broader participation and renewed strength from its most heavily weighted companies. We are looking at the ProShares UltraPro QQQ ETF $TQQQ, as a higher risk way to gain leveraged exposure to that possibility, especially after months of consolidation.
Possible Catalysts
The Nasdaq 100 enters the second half of 2026 with several catalysts. AI investment remains strong, semiconductor demand is expanding, and leadership has broadened beyond mega cap stocks.
The Federal Reserve has held rates at 3.50%-3.75%, and further cooling in inflation could support valuations by easing pressure from bond yields. The next key test is the June CPI report on July 14. A cooler reading could strengthen the case for growth stocks, while a hotter report may trigger a pullback and offer a better entry point (We’ll update our entry if we take a position this week).
Risks
TQQQ’s leverage works in both directions. A 3% daily decline in the Nasdaq 100 could theoretically produce a decline of roughly 9% in TQQQ…for that reason, TQQQ should be treated as a tactical, actively managed position, not a passive replacement for QQQ. Position sizing, defined invalidation levels and disciplined profit taking will be essential.
Amazon (AMZN)
Price target: Members Only
225.00 seems to be the strongest support…a move below likely forces a retest of 190.00-195.00…we’d be willing to average down if necessary and theory remain true.
We’ve been highlighting the race between Amazon and Walmart to the trillion dollar annual revenue mark, and it’s looking like Amazon is pulling ahead as it grows from just an e-commerce company to a massive retail operation, the #1 could provider through AWS, and rapidly growing advertising segment that is already generating more than $60 billion annually.
Amazon also has several longer term bets in motion, including custom AI chips, satellite internet through Amazon Leo, Alexa, devices, and Prime Video.
Amazon's Reaccelerating Revenue
In a rarity for such an established company, Amazon’s business is reaccelerating. Revenue increased 17% year over year to $181.5 billion, while operating income climbed to $23.9 billion from $18.4 billion. The real highlight was AWS.
AWS revenue grew 28% to $37.6 billion, marking its fastest growth rate in 15 quarters. AWS also posted an operating margin of nearly 38%, showing that Amazon’s cloud business is not only growing faster, but doing so very profitably. Advertising revenue increased 24% to $17.2 billion, giving Amazon another fast growing, high margin business outside of AWS.
Amazon, Artificial Intelligence, and Data Centers
Like other MAG7 companies spending billions on the data center buildout, Amazon’s stock has underperformed the S&P 500 this year (we highlighted this in our TQQQ analysis this week). The reason is of course because investors don’t know if all the AI spending is going to be worth it. Amazon’s CapEx is expected to reach $200 billion this year, but the argument against that is their massive backlog.
AWS ended the quarter with approximately $364 billion in contracted revenue that has not yet been recognized. That number reportedly excludes a separately announced Anthropic agreement that Amazon CEO Andy Jassy said was worth more than $100 billion. Some analysts believe Amazon’s total backlog could approach $400 billion by the end of the year. This gives Amazon tremendous revenue visibility. Customers are already committing to use Amazon’s cloud and AI infrastructure for years into the future. The question is no longer whether there is demand, it’s whether Amazon can build enough infrastructure to meet that demand.
Risk
The biggest risk is execution. Backlog does not turn into revenue until Amazon gets the data centers built, secures enough power and brings the necessary chips online.
There is also customer concentration risk. A meaningful portion of future demand comes from a small group of major AI companies such as OpenAI, Anthropic and Meta. Any slowdown, renegotiation or change in spending from those customers could affect future growth.Regulation is another risk…Amazon continues to face scrutiny in the United States and Europe, and there has even been occasional discussion about separating AWS from the retail business. That does not appear imminent, but it remains something investors should keep in mind.
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Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.
Hyper Stocks and its contributors may hold positions in some of the securities or assets mentioned above. These positions are subject to change without notice. Any opinions expressed reflect current views at the time of writing and are not guarantees of future performance. Past performance does not guarantee future results.