Amazon.com, Inc. (NASDAQ:AMZN)’s latest plan to come out with its own smartphone line, would be a risky and costly move, according to an analyst Colin Sebastian at Baird.
Amazon.com, Inc. (NASDAQ:AMZN)’s will to enter the highly competitive smartphone market, that is already dominated by Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) is a move that seems to be difficult and risky for the e-commerce giant to strengthen its position. An analyst Colin Sebastian at Baird said that the reported plan of AMZN could simply put more margin pressure on Company whose increased expenses have already drawn downbeat reviews from Wall Street.
Sebastian told clients in a note. “Risks may outweigh benefits of Amazon’s phone,”
He further added. “Understandably, there are concerns about Apple and Google’s platform dominance in mobile devices, but launching a stand-alone phone could add margin pressures and significant competitive headwinds,”
Amazon.com, Inc. (NASDAQ:AMZN), shares after opening at $310.90 moved to $313.29 on last trade day and at the end of the day closed at $308.01. Company price to sales ratio in past twelve months was calculated as 1.81 and price to cash ratio as 16.36. Amazon.com, Inc. (NASDAQ:AMZN), showed a positive weekly performance of 1.38%.
Apple Inc. (NASDAQ:AAPL) shares after opening at $592.34 moved to $594.20 on last trade day and at the end of the day closed at $592.58 . Company price to sales ratio in past twelve months was calculated as 2.90 and price to cash ratio as 12.34. Apple Inc. (NASDAQ:AAPL) showed a positive weekly performance of 3.61%.
Google Inc (NASDAQ:GOOG) weekly performance is 2.28%. On last trading day company shares ended up $527.93. Google Inc (NASDAQ:GOOG) distance from 50-day simple moving average (SMA50) is -2.58%.
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