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Amazon (AMZN) Unveils New Alexa-Powered Device Fire TV Cube

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Amazon.com Inc. (AMZN - Free Report) has already witnessed huge success with its video streaming devices, which were rolled out four years ago.

Now, the e-commerce giant has upped the ante with the release of a new device, Fire TV Cube, a 4K Ultra HD streaming media player.

Unlike Fire TV that required users to summon Alexa through remote, this new device is already equipped with the voice assistant, Alexa. Alexa enables customers to power the TV or cable box on or off, search TV shows, control sound bar, A/V receiver, cable or satellite box and change the cable channels, among others. The device uses multi-directional infrared technology, cloud-based protocols and HDMI CEC.

On a year-to-date basis, the company has outperformed the industry it belongs to. Shares of Amazon have gained 44.45% compared with the industry’s growth of 28.33%.

Features & Pricing

On the hardware front, Fire TV Cube has eight far-field built-in microphones, designed to accommodate the shape of the cube. Just like other Echo products, it also has the noise-reducing and echo-cancelling technology.

The Fire TV Cube can stream Internet video up to 4K ultra high-definition (UHD) content.It allows easy and instant access to hit movies and popular TV series from Amazon Prime services, Hulu, Netflix and other apps. Not only this, italso serves as an Echo speaker,allowing the users to do basic tasks like call across the room to check the weather, turn on the lights, order things from Amazon or call a friend.

The fascinating thing about this new device is its support for the cable-TV boxes. It gives users the option to change their cable TV channels by using their voice. However, as of now, just a few of the cable services like Comcast, DISH and DirecTV will be supported. Therefore, this device will not only cater to the needs of the cord cutters but also those who still pay for cable.

Priced at $119.99, the new Fire TV Cube will be launched on Jun 21.

Bottom Line

Technology has brought about a sea change in consumption habits and platforms. Therefore, to keep pace with the change in the digital consumption patterns of books, video, music and gaming, Amazon and other leading technology companies like Google and Apple are investing in platforms, content and people to develop suitable technologies.

Amazon’s Echo, Fire TV, Fire TV Stick and other devices’ achievement underscores the fact that Amazon is heading toward the right direction with its Alexa-powered devices. The Alexa-powered devices are going great guns and helping the company to better sellits products and services. The idea is to make Alexa the central point connecting IoT devices used in any household and get unrivaled customer data.

This in turn will help the company gain a long-term competitive edge over Alphabet subsidiary Google's smart assistant, Apple’s Siri and Microsoft's Cortana.

The latest innovation definitely takes Amazon Prime one step closer to being a must-have living room feature.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus | Amazon.com, Inc. Quote

Zacks Rank &Other Stocks to Consider

Currently, Amazon sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the same industry include Groupon (GRPN - Free Report) , PetMed Express (PETS - Free Report) and Expedia (EXPE - Free Report) . While Groupon sports a Zacks Rank #1, PetMed and Expedia carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Groupon, PetMed and Expedia is currently projected to be 6.5%, 10% and 14.5%, respectively.

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