Back to top

Analyst Blog

Zacks Equity Research

Amazon Cloud Player in Sonos Wireless

AMZN AAPL

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Amazon.com, Inc. (AMZN - Analyst Report) has recently announced that its Cloud Player can stream music wirelessly through the Sonos Wireless HiFi System. Management has added Sonos to the compatible Cloud Player device list due to the popular demand from its customers.

John MacFarlane and Trung Mai founded the Sonos Wireless HiFi System in 2002. The vision of the company is to provide an out-of-the world experience of listening to music through the best sound quality possible.

Amazon’s Cloud Player is like a web storage application, which allows people to listen to their music from any computer or Android device with Internet access. It allows streaming on devices such as Kindle Fire, Android, iPhone, iPod Touch, Mac and PC. Amazon doesn’t give out exact numbers, but the Cloud Player has apparently won millions of users since its launch in early 2011.

Amazon lets users buy music from its own library of 20 million tracks and also allows imports from other sources. However, while Amazon has sweetened the deal by offering the first 250 songs free but anything in excess of 250 and up to 250,000 requires an annual subscription of $24.99 a year. Amazon currently offers the service to U.S. consumers alone, but one might expect expansion in international markets in the not-too-distant future.

Apple (AAPL - Analyst Report) on the other hand does not charge annually, but only for what users download. A song costs around 99 cents in the iTunes store, but is available for playback on any iCloud registered device at no extra cost..

Amazon’s strategy of including Sonos makes its service more ubiquitous. It is expected that since the inclusion of the Sonos system will bring more users to the Amazon cloud, it would help push sales of all its other digital goods. Therefore, while iTunes still leads in the segment, Amazon’s tactics could bring rapid market share gains for the company.

Amazon’s second quarter results were more or less within expectations. Reported revenue of $12.83 billion was down 2.7% sequentially and up 29.5% from the year-ago quarter. This was better than the guidance for the quarter of $11.9-13.3 billion (down 4.4% sequentially, or up 27.1% year over year at the mid-point) and in-line with consensus expectations. Year-over-year revenue growth was 32%, excluding an unfavorable currency impact.

Amazon is one of the leading players in the extremely fast-growing retail eCommerce market. While the strong growth prospects are making the market more competitive by the day, Amazon continues to maintain and even grow its share on the back of its consistent and reliable service. Amazon’s scale of offerings, its broad reach and platform approach are the keys to its success.

Currently, Amazon has a Zacks #3 Rank, which implies a Hold rating in the near term.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
VERTEX ENERG VTNR 8.25 +10.59%
MODINE MANUF MOD 17.12 +8.77%
CLAYTON WILL CWEI 140.03 +7.27%
E*TRADE FINA ETFC 22.67 +5.44%
KNIGHTSBRIDG VLCCF 13.22 +5.42%