Munster Says Amazon (AMZN) Will Get 'Side-Swipped' by iPad Mini; Shares Fall
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Price: $266.43 -0.9%
Rating Summary:
26 Buy, 11 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Rating Summary:
26 Buy, 11 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
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Shares of Amazon.com (Nasdaq: AMZN) are moving lower over the last few minutes of trade as Piper Jaffray's Gene Munster just appeared on CNBC's Squawk on the Street to discuss the implications of a smaller iPad on the Kindle line.
The analyst, often considered "the ax" on Apple (Nasdaq: AAPL), said Amazon is the company which will really get "side-swipped" by an iPad Mini. He said Amazon should be bracing for an "atomic event" when a smaller version of the iPad is released.
Although Munster noted the Kindle line is only a small portion of Amazon's overall margin story, he warned Amazon needs to do "more than just price" in order to compete against the mighty Apple.
Munster highlighted the extreme growth which will hit the tablet market moving forward. He expects units to move from about 100 million a year currently to about 400 million units within a few years.
Despite the concern, the Piper Jaffray analyst maintains an Overweight rating and $260 price target on Amazon.
Amazon shares are now down about 0.6 percent to $223.74. Notably, the stock opened Tuesday's session up about 1 percent.
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The analyst, often considered "the ax" on Apple (Nasdaq: AAPL), said Amazon is the company which will really get "side-swipped" by an iPad Mini. He said Amazon should be bracing for an "atomic event" when a smaller version of the iPad is released.
Although Munster noted the Kindle line is only a small portion of Amazon's overall margin story, he warned Amazon needs to do "more than just price" in order to compete against the mighty Apple.
Munster highlighted the extreme growth which will hit the tablet market moving forward. He expects units to move from about 100 million a year currently to about 400 million units within a few years.
Despite the concern, the Piper Jaffray analyst maintains an Overweight rating and $260 price target on Amazon.
Amazon shares are now down about 0.6 percent to $223.74. Notably, the stock opened Tuesday's session up about 1 percent.
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