Tag Archive | AMZN

Amazon in Solid Growth Trend With E-Book Business

originally posted at Minyanville 

by  Tony Daltorio. contributing writer

Amazon says it is selling more e-books for its Kindle electronic reading device than paperback and hardback editions combined.

If you would have told any book lover a few years ago that electronic books were poised to surge in popularity and overtake traditional books, you would have been scoffed at and drawn more than a few stares.But here we are a few years later. The Association of American Publishers recently reported that US e-book revenues had grown 146 percent in March over the same month a year ago.Figures for March showed e-book revenues of $69 million. This trailed only adult paperbacks, which were down 8 percent at $116 million, and adult hardbacks, up 6 percent at $96.6 million.

So it should come as no great surprise to investors that Amazon.com (AMZN) is at the forefront of the trend toward e-books. The company began as an online seller of printed books in 1995 and launched the Kindle e-reader in November 2007.

Amazon’s Growth

Amazon said it is selling more e-books for its Kindle electronic reading device than paperback and hardback print editions combined. It now sells 105 electronic books for every 100 printed ones. Amazon’s founder and CEO Jeff Bezos commented, “We had high hopes that this would happen eventually, but we never imagined it would happen this quickly.”

This is a trend which has been in place for roughly the last year now. Sales of e-books surpassed hardcover titles in July 2010 and overtook paperbacks six months later. And now its bested both categories combined!

A real positive is the fact that Amazon stated that this trend helped its book business do its strongest growth in more than a decade.

Amazon only released unit sales data rather than comparable revenue figures, and Kindle editions typically sell for lower prices than print titles.

However, the data did suggest that Amazon might be extending its leading market share in e-books. This follows the release six weeks ago of a cut-price Kindle at $114 for US customers willing to accept sponsored screen savers and other advertising.

Publishers, who gathered this week at the annual Book Expo America in New York, think that this trend toward e-books will continue. They believe Amazon and other e-book sellers are likely to benefit from the trouble afflicting Borders and other brick-and-mortar book sellers. Borders filed for Chapter 11 bankruptcy protection in February.

If you decide to make an investment in Amazon, be sure you have sufficiently evaluated the risk for your investment. Even though Amazon looks to be in a solid growth trend with its e-books business, it’s important to maintain an intelligent risk strategy to earn higher returns.

Buy and protect — it’s the smart way of investing.

The Four Horsemen of the Tech Market

 by Raghu Gullapani,  SmartStops.net contributing editor
 

AAPL GOOG  IBM  AMZN 

Over eight months the market has steadily climbed up. This climb has been led by the technology sector. Four explosive companies have led the charge.
  
Apple (AAPL) has led the charge but of late, the charge has stalled. This slowdown in forward momentum is reminiscent of price action last summer. From a technical perspective, the stock has been forming a bull flag and has been holding above its 55 & 210 ema. I would be hesitant to invest more than a feeler at this point until it more clearly resolves to the upside and starts to break above resistance at $360.   SmartStops.net indicates the short-term stop is $341.06 and the long-term stop is $339.49
 
Google (GOOG) has been the laggard in this group for some time now. Lower than expected earnings and the market’s disdain for new CEO Larry Page have led it down. And while it may be tempting to buy on recent news, the technicals don’t bear it out. The stock is trailing the 55 and 210 ema.   Smartstop.net projects the short-term stop is $527.77 and the long-term stop is $525.04
 
IBM (IBM) has shown relative strength, leading the 55 and 210 ema. After a brief pullback the stock looks like it may make new highs.   Smartstops.net  has the short-term stop at $165.73 and the long-term stop at $158.75
 
Amazon (AMZN) has been the recent leader in this group after nearly bouncing off it 210 ema. The stock is showing a lot of relative strength and looks to continue to make new highs. Smartstops.net has the short-term stop at $187.85 and the long-term stop at 168.24
 
The four horsemen were leading indicators of doom.   Keep an eye on leaders to protect yourself from volatile markets.  Market leaders are known to drop 72% from their peak per Investor’s Business Daily.

4 ETFs To Play Surge In E-Commerce

Over the recent holiday period, the e-commerce sector witnessed exceptional growth as many consumers opted to shop on-line, as opposed via the traditional brick and mortar storefronts, paving the path to opportunity in the near future for the sector. 

According to a recent article in Barron’s, U.S. e-commerce spending accelerated 13% during the holiday season, pushing total e-commerce growth in 2010 to 10% year-over-year.  Furthermore, the article also contends that US e-commerce is expected to witness another 10% year-over-year growth in 2011, pushing spending to over $150 billion for the year.  Read More…

Three ETFs To Play Amazon And Remain Diversified

As technology companies continue to generate cash and hoard it, some, like Amazon (AMZN) are looking at acquiring others to broaden their current offerings paving the road to prosperity for the Internet HOLDRs (HHH) the Retail HOLDRs (RTH) and the PowerShares NASDAQ Internet (PNQI).

According to insiders, Amazon, which was sitting on cash and short-term securities of $5.9 billion at the end of September, is currently nearing an agreement to buy Quidsi Inc., owner of Diapers.com and Soap.com.    Furthermore, the Seattle based online retailer recently bought Woot.com, a site that offers a daily discounted item and has agreed to purchase BuyVIP, a fashion site, which will expand its presence in Europe.  Read More…

Four ETFs Driven By Consumer Spending

The US economy grew at a faster than expected rate in the third quarter of this year, buoyed much by an increase in consumer spending, however, is still not growing at a rate to generate new jobs.  Despite this, a ray of light may shine on sectors driven by consumer spending enabling the Consumer Discretionary Select Sector SPDR (XLY), the Vanguard Consumer Discretionary (VCR), the PowerShares Dynamic Consumer Discretionary (PEZ) and the Retail HOLDRs (RTH) to reap the benefits.

According to the Commerce Department, consumer spending, this accounts for nearly 70 percent of US GDP, increased by 2.4 percent annually during the third quarter of this year.  Furthermore, retail sales rose in each of the three months in the third quarter with a further detail indicating that this rise is broad based.  Read More…

3 Internet Retailers Showing Spark Of Light

Despite declines in consumer confidence, a relatively unstable labor market and the G-20 emphasizing deficit reduction, three Internet retailers are illustrating a spark of light and could pose an opportunity.

The first is Netflix (NFLX).  The Los Gatos, California-based online movie rental subscription company offers consumers a relatively cheap form of entertainment which can be streamlined directly to a personal computer or television with the touch of a button.  Additionally, the company does not charge late fees or impose due dates on movies that are delivered via mail, enabling a consumer to be flexible without being charged.  Thirdly, the monthly subscription fees charged by Netflix are much lower than the cost of watching a movie at the movie theater or renting one from a local movie store.  Lastly, Netflix is trading above both its 50 and 200 day moving averages and is up nearly 104% year-to-date. Read More…

Retail Gains Remain In Question

The retail sector as a whole is an uptrend pushing prices near 52 week highs, but spending and consumer confidence remain wary making these gains somewhat fragile.

Most recently, home improvement giant, Home Depot (HD) posted its first quarterly profit growth in more than three years, beating analysts’ expectations and painting a rosy picture.  To make things even more appealing for Atlanta Georgia based company boasted an increase in same-store sales of 1.2% in the fourth quarter, driven primarily by growth in international markets.  As for the future of the retailer, the expected expiration of the homebuyer tax credit is likely to have an impact on future earnings. Read More…

Four Reasons Google Is Attractive

Despite the continued hype behind its competitor’s innovative products, and its withdrawal from China, Google (GOOG) may be worthy and for good reason.

The search engine giant’s emergence into the mobile device world through its Nexus One and Android software stack which includes an operating system has been a hit.  Recently, Google announced that 60,000 cell phones equipped with Android are shipping on a daily basis.  Additionally, advertising on the Android continues to increase.  According to advertising firm AdMob, U.S. ad impressions on Android devices have increased from 27% in November to 42% in February and worldwide ad impressions have increased by 2%.  What makes Google even more appealing on this front, is that it appears to be taking advertising share from Apple’s iPhone, which has seen declines of ad impressions from 55% to 44% during the same time frame.  Furthermore, Google’s mobile phone can be found on Verizon (VZ), Sprint (S), AT&T (T) and T-Mobile’s platforms.  

A second factor that is likely to support Google’s strength is its upgrade to its online package of word processing and spreadsheet programs, Google Docs.  The changes, which were introduced on Monday, include several editing tools for word processing and quicker ways to fill cells in spreadsheets, which will enable it to directly compete with Microsoft (MSFT) Office.  The beauty behind Google Docs is that all of its applications are hosted over the Internet, whereas Microsoft’s software is typically installed on individual’s computers or workspaces. Read More…

ETFs To Play The Apple Tablet

By Kevin Grewal  

This week’s launch and release of Apple’s (AAPL) tablet device is expected to do to media what iTunes did to music and the iPhone did to telecommunications. 

Apple CEO, Steve Jobs, expects the tablet to bring great leaps of innovation to the media industry by repackaging and reselling media content.  In fact, the new device aims to bring media efficiency to homes by enabling  multiple users to read news, watch television and read emails. 

According to the Wall Street Journal, Apple has been in negotiations with television networks like Walt Disney (DIS) and CBS Corp. (CBS) to come up with a monthly TV subscription service.  Additionally, the company has been in talks with the New York Times (NYT) and NewsCorp (NWSA) to ink a publishing deal regarding books, newspapers and magazines. Read More…

Retail Poses An Opportunity

By Kevi n Grewal

Most recent data indicates that U.S. retail sales rose 3.6% from November 1 through December 24 as many loosened the grip on their wallets and spent a couple of extra dollars during the holiday season.

To add to retail’s appeal, the International Council of Shopping Centers expects final holiday sales numbers to increase by 1% from last year and sales numbers for the month of December to jump 2%.  The holiday season, in conjunction with a boost in consumer confidence, increases in disposable income and the loosening of credit markets are all positive forces that should support a favorable trend in the sector. Read More…

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