Amazon.com, Inc. (AMZN) Takes Gaming Serious With Lumberyard and GameLift

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It’s been quite clear that Amazon.com, Inc. (NASDAQ:AMZN) has had their eyes on the gaming market for quite some time now. Just what steps they would take to make sure that they had a hand within this multi-billion market were not totally clear, however. With that said, today the picture gets a little bit less hazy as the company announces two tidbits of news related to their gaming ambitions. First they have begun offering free access to a new 3D gaming engine called Lumberyard.

“Lumberyard helps developers build beautiful worlds, make realistic characters, and create stunning real-time effects,” Amazon said in its statement.

Second, Amazon.com (NASDAQ:AMZN) also announced the debut of GameLift. GameLift is a brand new service being offered by the company which enables developers to operate as well as deploy multiplayer games.

“Developing and maintaining a back-end infrastructure for multiplayer games requires a lot of time, resources, and expertise that are beyond the reach of many developers,” said Chris Jones, Chief Technology Officer, Obsidian Entertainment. “Amazon GameLift removes much of that burden from the developer, allowing them to focus their energy on bringing their great game ideas to life.”

The stock is down 2.15% or $10.49 following the news, hitting $477.61 per share. Approximately 35,305 shares traded hands. AMZN shares have risen 6.00% since January 10, 2016 and are currently uptrending. It has outperformed the S&P500 by 14.87%.

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 53.75% above today’s ($477.61) stock price. Amazon.com was the topic of 64 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Susquehanna initiated shares on January 15 with a “Positive” 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 increased, 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 purchases, and 9 sales for a total of $25.00 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 $1.23M.

Amazon.com, Inc. is an e-commerce company. The company has a market cap of $210.57 billion. The Firm sells a range of services and products through its Websites. It has 385.13 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.