The combined effect of a break-down in U.S. debt deal talks and uncertainty in the Eurozone took its toll on stocks since last week. [1] This included Amazon (NASDAQ:AMZN), which slid by more than 13% in the past week. Having said that, the fundamentals for the company remain strong, as the Kindle Fire seems on the road to become second-largest tablet brand behind Apple’s (NASDAQ:AAPL) iPad.
See our full analysis for Amazon’s stock here
Amazon Continues to Strengthen its Kindle Brand
Kindle Fire statistics saw a big confidence boost this week as initial pre-order levels indicated that the tablet is on the road become a leader in the tablet market, second only to the iPad. [2] Amazon has continued to bolster its e-content for the same as well, recently entering another multi-year media partnership with Warner Bros. [3] Given the potential of the Kindle Fire, it would not be a surprise if Amazon continues to tread on wafer-thin margins in Q4 2011 as well, making further investments to expand its e-commerce and e-content reach. The Kindle Fire could also provide an upside to merchandise sales in the coming shopping season, as the company rolls out hundreds of attractive Black Friday discounts to draw in traffic. [4]
We have a revised price estimate of $233 for Amazon’s stock, which is currently around 23% above the current market price.
Understand How a Company’s Products Impact its Stock Price at Trefis
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