For Immediate Release
Chicago, IL – October 3, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Amazon.com, Inc. (AMZN - Analyst Report), Barnes & Noble (BKS - Snapshot Report), Apple (AAPL - Analyst Report), Microsoft (MSFT - Analyst Report) and Google (GOOG)
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Tuesday’s Analyst Blog:
Amazon’s Kindle vs. Barnes & Noble’s Nook
The world's largest Internet retailer Amazon.com, Inc. (AMZN - Analyst Report) will start shipping the front-lit Kindle Paperwhite around the end of this month, intensifying the competition with Barnes & Noble’s (BKS - Snapshot Report) Nook Glowlight.
The Paperwhite is Amazon’s fifth generation e-book reader. Amazon went back to the drawing boards and made certain changes to the e-book reader. For example, Amazon itself develops the display in Paperwhite. The higher contrast ratio makes Paperwhite a visual treat for readers. On the hardware front, Amazon removed all the buttons except the home button. This has made the device lighter and thinner.
However, Barnes & Noble took a different route as their device has buttons on either side of the screen. Nonetheless, both these devices are backlit, which helps to brighten up the screen. Also, one can reduce or increase the light while reading.
On the connectivity front, Paperwhite supports both WiFi and 3G. Barnes & Noble on the other hand has equipped their Nook with just WiFi. Amazon seems to be far ahead in the race as the collection of Amazon’s e-books is the largest. Amazon also attracts new authors and has its own digital publishing unit, both of which further promote its platform.
Amazon’s constant upgrading of its e-book reader is surely benefiting customers. However, while Amazon may have the best e-reader, Apple’s (AAPL - Analyst Report) certainly has the best tablet. Despite the fact that the Kindle has acquired many new features over the years, its not a full-blown tablet yet. Therefore, given that the tablet market is far larger than the e-reader market, Amazon’s Kindle is unlikely to catch up with Apple’s iPad any time soon. Additionally, the market continues to heat up with other tablets such as Microsoft’s (MSFT - Analyst Report) Surface and Google’s (GOOG) Nexus.
Analysts are expecting the e-book market to reach $5.2 billion by 2016 in the U.S. alone. The e-book market has witnessed unprecedented growth, as both authors and readers have benefited from it. Amazon, through its Kindle reader and Kindle apps is currently the leading seller of ebooks. However, if the company is unable to build further on its Kindle or slash prices drastically, it could see its share of overall book spending decline. In the first quarter of 2012, the company accounted for 29% of book spending in the U.S., followed by Barnes & Noble at 20%.
However, current trends seem to indicate that consumers increasingly prefer multi-purpose devices (aka tablets) for book-reading, which means there is a real danger that interest could move from reading to watching movies or listening to music. Tablets have changed the scenario of reading a book as now consumers have access to their libraries of music, movies and books anywhere and at anytime.
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.
Currently, Amazon has a Zacks #3 Rank, which implies a Hold rating in the near term.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339