Barrons: AMZN Tablet Has Resources To Compete With iPad, Says Wedge
By Tiernan Ray
Wedge Partners analyst Brian Blair this morning opines that Amazon.com’s (AMZN) rumored tablet, which may appear in time for the holidays, could give Apple’s (AAPL) iPad a run for its money, based on his assessment of the tablet market so far and Amazon’s Kindle successes.
It’s possible “Given Amazon’s arsenal of media content (music, streaming TV and movies), digital books, app store and distribution strength that the company’s tablet offering has an opportunity to offer something competitive to the iPad,” writes Blair, and he models the company shipping 800,000 to 1 million units of the 7-inch device at first, with total shipments of perhaps 3 million to 4 million units this year.
He notes, “If HP TouchPad after-market and eBay sales are any indication, consumers are willing to spend $300 for a good tablet and this may be the sweet spot for non-iPad market entrants.”
Blair notes that the device could be beneficial to Broadcom (BRCM), which would likely supply the combination WiFi and Bluetooth part for the tablet; Nvidia (NVDA), which is believed to be the microprocessor supplier; and Taiwanese capacitive touch-screen vendor TPK Holding Ltd (3673TW).
Amazon shares today are down $5.76, or 2.7%, at $211.23.
that's about the 20 the similar comment on this tablet where none points out the valuation differential b/t the companies. AMZN trades like it brought to the market the IPAD, and AAPL trades like it's yet to come to the market with theirs. One of the reasons it all these fast money momo-quant funds own the same thing AMZN as shown today that Jim Simons and Louis Navellier have been playing in the AMZN stock sandbox. Along with Ken Fisher, who's a blowhard. Everyday, you see a big hedge fund manager on Seeking Alpha with big holdings in AMZN. Crowded. And I'm still looking to find outside year 2000, when a $100 billion + market cap company traded with a triple digit multiple , of course adjusting for history and back present value. Meaning that there wee alot of large caps in the Nifty Fifty in the early 1970's with $100 billion market cap equivalents for that day, but didn't come close to AMZN's valuation.