Analyst Cuts Estimates on Amazon.com (AMZN) Amid Declining Demand for E-Readers

June 26, 2012 12:34 PM EDT Send to a Friend
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Investors in shares of Amazon.com (Nasdaq: AMZN) are shrugging at some mixed comments and reduced estimates from Pacific Crest's Chad Bartley Thursday. The stock last traded around $225, up more than 2 percent for the session.

Bartley cited recent channel checks saying demand for Amazon's Kindle e-reader is falling while demand for the Fire is improving "slightly." The analyst reduced his second-quarter e-reader unit sales estimate from 1.5 million to 1.2 million and his FY12 estimate by 21 percent from 12.3 million to 9.7 million. Bartley sees Fire unit sales for 2012 near the high end of the 12-15 million range.

The Pacific Crest analyst is modeling for Amazon to unveil new multi-touch, black-and-white e-readers and a 7-inch Kindle Fire during the third quarter.

Given the reduced shipment estimates, Bartley cut his FY12 and FY13 estimates for Amazon.

Pacific Crest maintains a Sector Perform rating on shares of Amazon.com. Bartley sees Amazon.com shares fully valued at about $207.

Visit our Analyst Ratings page to track all the market-moving analyst calls on shares of Amazon.com.


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