CHICAGO, Aug. 28, 2012 /PRNewswire/ -- 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 includeAmazon.com Inc.(Nasdaq:AMZN), Netflix (Nasdaq:NFLX), eBay Inc. (Nasdaq:EBAY),Apple Inc (Nasdaq:AAPL) and Google(Nasdaq:GOOG).
Amazon.com Inc.(Nasdaq:AMZN) announced a content licensing agreement deal with NBCUniversal Cable & New Media Distribution Paramount Pictures, extending the archive of films currently available on its streaming video site, Amazon Prime Instant Video. Following the news, Amazon shares were up 1.88%, while Netflix (Nasdaq:NFLX) shares dropped $1.39% on Friday.
The online retailer has been consistently upgrading and promoting movies and television shows on its streaming video service. Amazon has entered into a number of deals this year. It signed a deal with Viacom in February, Paramount Studios in May and Metro-Goldwyn-Mayer Studios (MGM) in June, which took the total number of available videos to more than 18,000.
The latest deal with NBCUniversal will expand Amazon's already-large selection of movies and TV episodes available to customers as part of their Prime membership. Amazon said that hundreds of episodes from TV shows like Parks and Recreation, Parenthood, Friday Night Lights,Heroes and Battlestar Galactica will now be available on Prime. Prime users can now view more than 22,000 movies and TV show episodes on Kindle Fire, or compatible devices including iPad, Roku, Xbox 360 and PlayStation 3.
We believe that one of the key strategies for Prime Instant Video remains the expansion of its video archive. Netflix has seen the benefits of such an expansion in recent times, in spite of its instituting rate increases. However, Amazon's vast offerings at discounted rates ($79 per year for Prime shipping service versus Netflix charges of $95 per year for its streaming video service) could create a price war in the digital delivery of movies. Amazon's additional advantage is a steady customer base, since Prime offers several other advantages (related to online shopping for example) compared to Netflix.
Amazon is one of the leading players in an extremely fast-growing market. In the second quarter, Amazon's revenue of $12.83 billion was better than the guidance and in-line with consensus expectations. Management attributed the increase in revenue to the growing consumption of digital content across different categories because of the advantageous value proposition Amazon was able to provide to its customers.
However, competition from eBay Inc. (Nasdaq:EBAY),Apple Inc (Nasdaq:AAPL) and Google(Nasdaq:GOOG) remains strong.
Currently, Amazon has a Zacks #3 Rank, which implies a Hold rating in the near term.
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.
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.