Amazon.com, Inc. (AMZN) Shares Drop Despite Tablet Business Seemingly Flourishing

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Shares of Amazon.com, Inc. (NASDAQ:AMZN) are down slightly today, even though the company’s tablet business seems to really be taking off as of late. According to data released by the IDC Amazon has moved into third place behind only Apple and Samsung, representing a huge 175.7% year-over-year growth for the company. This comes as Apple saw their growth decline by 24.8% and Samsung 18.1% for the 4th quarter of 2015 compared to the previous year.

This growth was aided by Amazon.com, Inc. (NASDAQ:AMZN)’s $49.99 Fire tablet, which represents a high discount over their competitors.

“Amazon’s latest Kindle iteration piqued everyone’s interest with its low price point, allowing Amazon’s annual growth to reach 175.7%, the highest amongst the top 5. Amazon’s success in the tablet market has thus far been purely based on price,” The IDC reported. “While this bodes well during the holiday season, it’s unlikely the Kindle’s success will continue in the remainder of the year.”

Amazon stock is down 1.82% or $10.67 following the news, hitting $576.33 per share. Approximately 1.77 million shares traded hands. AMZN shares have risen 33.38% since June 25, 2015 and are currently uptrending. It has outperformed the S&P500 by 41.09%.

From a total of 26 analysts covering Amazon.com (NASDAQ:AMZN) stock, 22 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 85% of the ratings are positive. The highest target price is $900.0 while the lowest target price is $525. The mean of all analyst targets is $734.31 which is 27.41% above today’s ($576.33) stock price. Amazon.com was the topic of 66 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Credit Suisse maintained shares on January 19 with a “Outperform” rating. M Partners initiated shares with a”Buy” rating and a $800.0 target share price in their report from a December 15. Monness Crespi & Hardt downgraded AMZN stock in a recent report from January 4 to a “Neutral” rating. Barclays Capital maintained the rating on December 1. Barclays Capital has a “Overweight” rating and a $850 price target on shares. Finally, Macquarie Research maintained the stock with a “Outperform” rating in a report they issued on a December 22.

The institutional sentiment increased to 1.49 in Q2 2015. It’s up 0.37, from 1.12 in 2015Q2. The ratio is positive, as 67 funds sold all their Amazon.com, Inc. shares they owned while 376 reduced their positions. 166 funds bought stakes while 493 increased their total positions. Institutions now own 325.29 million shares which is 4.94% more than the previous share count of 309.99 million in 2015Q2.

Huntington Steele Llc holds 23.61% of its total portfolio in Amazon.com, Inc., equating to 103,872 shares. Tiger Global Management Llc owns 3.19 million shares representing 20.13% of their total US portfolio. Moreover, Tybourne Capital Management Hk Ltd has 18.16% of their total portfolio invested in the company, equating to 504,001 shares. The Washington-based Brighton Jones Llc has a total of 17.93% of their portfolio invested in the stock. Telemark Asset Management Llc, a Massachusetts-based fund reported 100,000 shares owned.

Since May 4, 2015, the stock had 0 insider buys, and 11 insider sales for a total of $27.04 million in net activity. Stonesifer Patricia Q sold 6,250 shares worth $3.16 million. Wilke Jeffrey A sold 5,908 shares worth $3.16M. Reynolds Shelley sold 720 shares worth $381,752. Olsavsky Brian T sold 2,098 shares worth $1.11 million. The insider Zapolsky David sold 2,322 shares worth $1.23 million.

Amazon.com, Inc. is an e-commerce company. The company has a market cap of $270.16 billion. The Firm sells a range of services and products through its Websites. It has 465.51 P/E ratio. The Company’s products are offered through consumer-facing Websites, which include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers.

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