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Amazon (AMZN) Expands Fire TV Family With Latest Devices

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Amazon (AMZN - Free Report) is leaving no stone unturned to bolster its presence in the streaming world on the back of its expanding streaming devices offerings.

This is evident from the latest launch of the next-generation Fire TV Stick and Fire TV Stick Lite, which is an all-new device.

Notably, the advanced Fire TV Stick consumes 50% less power compared to the previous generation, while delivering fast streaming in 1080p at 60fps. Additionally, the device, which is comprised of a 1.7 GHz quad-core processor, is compatible with HDR. Further, the device, which costs $39.99, comes with Alexa Voice remote and Dolby Atmos.

Fire TV Stick Lite comes with an all-new remote —Alexa Voice Remote Lite, which helps in searching, launching and controlling content with a voice command. Also, it is an HDR-compatible device.

We believe that Fire TV Stick Lite is expected to drive the company’s momentum among customers further as this full-HD streaming device is more affordable. Notably, it costs $29.99.

Apart from the device launches, Amazon redesigned Fire TV experience by adding improved voice controls with Alexa, placing the Main Menu at the center and introducing the Find experience.

Fire TV Portfolio Strength: A Key Catalyst

Amazon has been gaining on its strengthening active user base for Fire TV on the heels of its Fire TV portfolio strength.

Apart from the latest additions, the portfolio comprises Fire TV Edition for Auto that allows direct integration of Fire TV into an in-vehicle entertainment system.

Further, the company offers Fire TV Edition for Soundbars, which powers more than50 TV and soundbar models in more than 10 countries.

Additionally, the introduction ofFire TV Edition for Operators, which allows television and telecommunication operators to offer Fire TV Edition devices to customers, remains positive.

All these are expected to continue bolstering the adoption rate of Fire TV globally, which in turn will drive the company’s top-line growth.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Intensifying Competition

We believe that expanding the Fire TV portfolio will continue to strengthen Amazon’s position in the streaming device market, which holds promise.

According to a report from AlliedMarket Research, this particular market is expected to witness a CAGR of 13.2% between 2020 and 2027, and hit $18.97 billion by 2027.

Notably, the upside potential in the streaming devices market is intensifying the competition, with several companies making advances into it.

Apart from Amazon, companies like Alphabet’s (GOOGL - Free Report) Google, Roku (ROKU - Free Report) , Apple (AAPL - Free Report) and Comcast are making concerted efforts to capitalize on the streaming device space growth potential, which is giving rise to the market competition.

Nevertheless, Amazon’s aggressive efforts toward delivering enhanced user experience on the back of advancing Fire TV features and improving Alexa skills on Fire TV make it a strong contender in the battle.

Currently, Amazon Carries a Zacks Ranks #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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