Jefferies Comments on Amazon (AMZN) Following Fire Launch; Sees 8.5M Units Sold Through FY12
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Rating Summary:
65 Buy, 5 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 18
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Jefferies commented on Amazon.com (Nasdaq: AMZN) following the launch of its new Kindles and Kindle Fire media tablet yesterday. Jefferies retained a Buy rating and $250 price target.
At $199 per unit, Jefferies said the biggest surprise about the device was the price, which Jefferies had pegged 25 percent higher at $249. Commenting on the price, Jefferies said, "HP's webOS $99 sale showed that Android tablets can sell in large volumes if the price is low enough, and recently other Android tablets have been discounted (Playbook $299, Xoom $458, Samsung Galaxy Tab 10" $459). We believe the Kindle Fire will mainly expand the market but also take some share from the Android players. Its low price could catapult it into the #2 market share position in 2012 ahead of Samsung."
Overall, the Fire's specs are less impressive than Apple's (Nasdaq: AAPL) iPad, but Amazon took care to tailor its Google (Nasdaq: GOOG) Android OS, named 'Silk,' to work better with its cloud. Jefferies comments, "We believe that this can give Amazon some competitive advantage vs. other players such as Samsung, Research in Motion and Motorola (Apple is reportedly working to leverage cloud-based services in the upcoming version of iOS)."
User will also be able to order more goods from Amazon's marketplace...always a plus.
On the other Kindles, Jefferies like the pricing, and is modeling for 6 million unit shipments in the fourth-quarter, amounting to $1.3 billion in aggregate revs.
Jefferes' best case scenario calls for 2.5 million Fire sales in the fourth-quarter and 6 million in fiscal 2012, adding $500 million and $1.2 billion in sales, respectively.
Click here for more analyst color on Amazon, or here for a ratings history.
Amazon shares are 2.6 percent lower Thursday.
At $199 per unit, Jefferies said the biggest surprise about the device was the price, which Jefferies had pegged 25 percent higher at $249. Commenting on the price, Jefferies said, "HP's webOS $99 sale showed that Android tablets can sell in large volumes if the price is low enough, and recently other Android tablets have been discounted (Playbook $299, Xoom $458, Samsung Galaxy Tab 10" $459). We believe the Kindle Fire will mainly expand the market but also take some share from the Android players. Its low price could catapult it into the #2 market share position in 2012 ahead of Samsung."
Overall, the Fire's specs are less impressive than Apple's (Nasdaq: AAPL) iPad, but Amazon took care to tailor its Google (Nasdaq: GOOG) Android OS, named 'Silk,' to work better with its cloud. Jefferies comments, "We believe that this can give Amazon some competitive advantage vs. other players such as Samsung, Research in Motion and Motorola (Apple is reportedly working to leverage cloud-based services in the upcoming version of iOS)."
User will also be able to order more goods from Amazon's marketplace...always a plus.
On the other Kindles, Jefferies like the pricing, and is modeling for 6 million unit shipments in the fourth-quarter, amounting to $1.3 billion in aggregate revs.
Jefferes' best case scenario calls for 2.5 million Fire sales in the fourth-quarter and 6 million in fiscal 2012, adding $500 million and $1.2 billion in sales, respectively.
Click here for more analyst color on Amazon, or here for a ratings history.
Amazon shares are 2.6 percent lower Thursday.
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