Will Amazon.com, Inc. (AMZN) Stock React to Christmas’ Ultimate Catastrophy – The Hoverboard – Or is it overblown?


Shares of Amazon.com, Inc. (NASDAQ:AMZN) stock are trading up 0.29% in pre-market trading this Monday morning after the big holiday weekend. Amazon had to have made a killing off of the sale of ” Hoverboards” over the past few months. Your know…. those 2-wheeled, self-balancing scooters that look and act like Segways, but without the handlebars…..

We don’t know how many “Hoverboards” were sold by Amazon.com, Inc. (NASDAQ:AMZN), nor how much they have lost in the latest “exploding battery” scandal, but the question is, should we really care?

For those of you not up to date, there have been several major incidents concerning Hoverboards over the past couple of weeks. Whether it be house fires, self-combustion, or merely incidents where these transporation toys simply stopped work for no reason, there is definitely some cause for concern. Most of this is because of Chinese-made lithium batteries which quite frankly were cheaply made. Amazon has offered full refunds for hoverboards in the United Kingdom, and surely their sales for this product have tumbled after the news.

“We regret the inconvenience this may cause you but trust you will understand that your safety and satisfaction is our highest priority,” Amazon (NASDAQ:AMZN) stated in an email aquired by BBC.

Fact is though, the majority of these Hoverboards work fine and will probably never experience a major issue. The amount of revenue that these vehicles generated for Amazon is so small that it won’t affect any sort of bottom line or profit numbers in any way. Will the stock react this busy Monday morning? Probably not! If it does, it’s simply on speculation that the reduced number of sales or potential controversy will somehow affect Amazon more than is possible.

Amazon does still have several listings for Hoverboards up on their site, so we assume that these have been deemed safe to use.

The stock decreased 0.14% or $0.91 during the last trading session, hitting $662.79. Approximately 1,336 shares traded hands. AMZN shares have risen 54.99% since May 22, 2015 and are currently uptrending. It has outperformed the S&P500 by 57.26%.

From a total of 25 analysts covering Amazon.com (NASDAQ:AMZN) stock, 22 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 88% of the ratings are positive. The highest target price is $850 while the lowest target price is $525. The mean of all analyst targets is $722.78 which is 9.05% above today’s ($662.79) stock price. Amazon.com was the topic of 58 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. M Partners initiated shares on December 15 with a “Buy” rating. Canaccord Genuity maintained shares with a”Hold” rating and a $600 target share price in their report from an October 23. Pacific Crest initiated AMZN stock in a recent report from December 8 with a “Overweight” rating. Benchmark maintained the rating on October 23. Benchmark has a “Buy” rating and a $700 price target on shares. Finally, Morgan Stanley maintained the stock with a “Overweight” rating in a report they issued on a November 11.

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 purchases, and 11 sales for a total of $27.04 million in net activity. Stonesifer Patricia Q sold 6,250 shares worth $3.16M. 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 $1.11M. 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 $310.69 billion. The Firm sells a range of services and products through its Websites. It has 961.46 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.