In September, Wal-Mart said it would stop selling Amazon's Kindle eReaders and tablets, placing a bet that consumers would be more interested in Apple's gadgets. This spring, Target Corp stopped selling Kindle devices.
Sentiment: Strong Sell
News just released... Apple sold over 2 million iPhones over this weekend. Apple sales are strong, amazon kindle sales are not released. If they were good,AMZN would have released them.
Sentiment: Strong Sell
Key problem with these tech ventures is that they all have a very short lifespan, and the developer must spend a lot of time and $ to support the product during this short lifespan.
Folks bookmark a few price comparison websites, and with a few keystrokes, zero-in on the cheapest product. Scamazon used to be the low-price leaders on many items. That changed 4-5 years ago. Today, Ebay and its sellers often garner the top spot for lowest out-the-door price. I'm also seeing a lot of competition from Newegg, WalMart, BestBuy, Tiger Direct, Staples, J&R Music, JensonUSA, and many other online retailers. As a consumer, I will gladly wait a few extra days to save a few bucks. Why should I pay $204 at Scamazon when I could pay $170 for the same camera at BestBuy?
the kindle represents 3.2 percent of amzn revs...most consumers would purchase the kindle from the amzn website anyway...the loss of kindle sales from wal mart and target won't hurt amzn at all...in fact, since amzn takes a loss on the kindle hardware anyway, this may actually help their bottom line. Amzn is in the belief that all the potential profits come from content on the kindle which you get from amzn itself. Wal mart and target only sold the hardware for a brief period of time.
cant have it both ways....the kindle was behind this companies 100 plus billion market cap. It was the future that was going to morph into amazons version of apple.
problem is the device is a door stop when compared to the apple products, which btw are being deeply discounted by walmat and are actually on its top webpage for xmass.
so which is it? The kindle selling like hot cakes, losing money on every sale, or no kindle sales and thus we can normalize the P/e to something less than 1000? Either way somebody is either lying or full of sheeit.
What about the decreasing margins? Rise of shipping costs? Lawsuits concerning sales tax? Rising competition? Inferior products? (Cough..Kindle!) Major profit taking by insiders? Rapid expansion with uncertainty of payoff? Oh yes and lack of focus and direction? The company is going everywhere and has no true focus other than directing traffic to their site which only goes so far, especially considering the factors listed above. All the stock needs is one piece of bad news and this bubble will pop.
Lets say they beat heavily on Kindle holiday sales, each one sold at a small loss. By the time they announce earnings they will not have time to sell enough content to make up for the loss. This is really irrelevant considering they eventually will sell content to make up for the loss but how will the market perceive the loss when initial earnings are released? This is also irrelevant in itself because Kindle sales haven't been great over the holiday season because their competition has better and more desired products. Amazon is then forced to further discount their Kindle creating more of a loss. So no matter what way they announce results the market will perceive it badly is what I am saying. Happy Investing to you!