Rumors Jostle Shares of Amazon (AMZN)
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Shares of Amazon (Nasdaq: AMZN) were jostled premarket Thursday on rumors that analysts at Credit Suisse downgraded the stock. The rumors aren't true, but they do raise a few eyebrows considering yesterday's Apple (Nasdaq: AAPL) feeding frenzy.
Apparently some folks out there are very eager to crap on Amazon (Nasdaq: AMZN) and its Kindle Fire tablet. After all, it won't be long before Apple unveils its dreamy, so-called, rumored iPad Mini, and everyone knows what that could mean for the Kindle given Apple's history of chewing up and spitting out its competition.
At an estimated 22 percent, Amazon has a surprisingly large share of the tablet market. Last week the company introduced three Kindle Fire HD models, two separate 8.9" versions for $499 and $299, and a 7” display version for $199.
Analysts at JPMorgan said they believe the 4G Fire could be more competitive with Apple's iPad as the annual cost of $549 with data is still $410 less than a comparable iPad 3 with data at $959.
However, "we also recognize that the tablet space will likely get even more crowded with an iPad Mini later this year," said analyst Doug Anmuth.
Yesterday Apple announced the latest version of the iPod Touch, at $299, which some insiders say gives clues about the iPad Mini. In a way, the Mini will likely be a scaled up version of the touch with a 7-inch screen. There is a lot of debate about the pricing of the Mini and were it would fit between the iPad and the Touch, and the truth is no one really knows for sure what the Mini will look like or where it will priced, or if the product even exits.
Whether or not Apple will eat Amazon's lunch remains to be seen, but until investors know for sure, justified or not, Amazon and its Kindle Fire might be the focus of additional rumors, innuendo, and plain old investor pessimism. But hey, it could be worse. Apple could already be already be picking its teeth.
Apparently some folks out there are very eager to crap on Amazon (Nasdaq: AMZN) and its Kindle Fire tablet. After all, it won't be long before Apple unveils its dreamy, so-called, rumored iPad Mini, and everyone knows what that could mean for the Kindle given Apple's history of chewing up and spitting out its competition.
At an estimated 22 percent, Amazon has a surprisingly large share of the tablet market. Last week the company introduced three Kindle Fire HD models, two separate 8.9" versions for $499 and $299, and a 7” display version for $199.
Analysts at JPMorgan said they believe the 4G Fire could be more competitive with Apple's iPad as the annual cost of $549 with data is still $410 less than a comparable iPad 3 with data at $959.
However, "we also recognize that the tablet space will likely get even more crowded with an iPad Mini later this year," said analyst Doug Anmuth.
Yesterday Apple announced the latest version of the iPod Touch, at $299, which some insiders say gives clues about the iPad Mini. In a way, the Mini will likely be a scaled up version of the touch with a 7-inch screen. There is a lot of debate about the pricing of the Mini and were it would fit between the iPad and the Touch, and the truth is no one really knows for sure what the Mini will look like or where it will priced, or if the product even exits.
Whether or not Apple will eat Amazon's lunch remains to be seen, but until investors know for sure, justified or not, Amazon and its Kindle Fire might be the focus of additional rumors, innuendo, and plain old investor pessimism. But hey, it could be worse. Apple could already be already be picking its teeth.
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