Little Hit to Amazon’s Stock From Lower Kindle Pricing and Unit Sales

Mon, 07/19/2010 - 16:02 EDT  in
 

Trefis submits:
Trefis members have created forecasts for two drivers of Amazon’s (AMZN) stock over the last week: (1) Kindle Pricing, (2) Kindle Units Sold. Their forecasts suggest that Kindle Pricing will will not decline as low as the Trefis forecast, while Kindle Units Sold will not rise as high as the Trefis forecast. The these projections suggest a net upside of less than 1% for Amazon’s stock. Amazon’s Kindle e-reader device competes with e-readers and tablets from players like Apple (AAPL), Sony (SNE) and HP (HPQ). Amazon’s Kindle Hardware constitutes only 1.3% of the $119 Trefis price estimate for Amazon’s stock. In comparison, Electronics and General Merchandise is 48%; Books, DVDs and Music is 37%; and Cloud and Other Web Services is close to 4% of the Trefis estimate for Amazon’s stock.Complete Story »

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