Back to top

Analyst Blog

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) announced that its film production division, Amazon Studios plans to produce pilots for five original children shows, including shows from the creators of Blue’s Clues and Rugrats.

These include Creative Galaxy, an animated interactive art adventure series, Oz Adventures, aninnovative problem solving series,Teeny Tiny Dogs, Tumbleaf anda science-based series, The Untitled J.J. Johnson Project.

These new pilots will be added to the six original comedies announced in December last year that are already in production. Management stated that all 11 pilots will be available on the Amazon Instant Video streaming service where viewers can watch them free of cost. Amazon Studios will take a call on which shows to produce going forward depending on viewer feedback.

Amazon Instant Video is a digital video streaming and download service that lets users rent, buy or subscribe to a range of video content. These pilots will further extend the archive of children shows on Amazon's video streaming library, making it a significant force in the video streaming segment and increasing competition for Netflix Inc (NFLX - Analyst Report) and Apple Inc. (AAPL - Analyst Report).

The completed pilots will be exclusively available to Prime members through Prime Instant Video and Lovefilm in the U.K for no additional cost. Lovefilm is Amazon’s European DVD and streaming movie service, which has almost 2 million subscribers.

In fact, many technology companies are getting into content production, including Hulu and Netflix, in order to reduce their reliance on traditional media companies. Amazon has been working on this for a while now and we believe these efforts will bring in millions of dollars and help the company to increase its market share.

Amazon is one of the leading players in an extremely fast-growing market. In the fourth quarter, Amazon’s revenue of $21.3 billion was up sequentially as well as from the year-ago quarter. Management attributed the increase in revenue to the growing consumption of digital content across different categories owing to the advantageous value proposition Amazon was able to provide to its customers.

Amazon currently retains a Zacks Rank #3 (Hold). Investors should look out for some other stocks with positive Zacks Rank and Expected Surprise Prediction or ESP (Read: Zacks Earnings ESP: A Better Method) such as:

Broadcom Corp. (BRCM - Analyst Report) has a Zacks Rank #2 (Buy) with an ESP of +10.26%.

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
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%