This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Amazon's Unveiling of Fire TV Was Underwhelming

Stocks in this article: NFLX AAPL GOOG

Here's what two other analyst had to say about Amazon's Fire TV.

Justin Post, Bank of America Merrill Lynch (Buy; $435 PT)

Fire TV is a push by Amazon to gain a better foothold in the living room where a large portion of media consumption occurs. We would expect Amazon to sell the Fire TV at close to break-even (similar to its Kindle and Kindle Fire strategy) with the goal of driving media sales and Prime customer acquisition (30 day free trial of Prime included with Fire TV purchase). While the device seems late to market vs. Apple TV (over 13mn units sold) and early adopters of competitive devices may not switch, Prime members (potentially 20mn in US) may be tempted to buy Fire TV as we like the competitive features. Features include: 1) ability to access video content from Netflix, Amazon, Hulu, YouTube, etc; 2) ability to access music from Amazon, Pandora, etc. 3) 3x processing power and 4x memory of competitive devices (according to Amazon); 4) voice search/navigation; 5) integrated gaming platform; and 6) Freetime Unlimited, a subscription service with kids content for Prime and non-Prime customers.

Ronald Josey, JMP Securities (Market Perform, N/A PT)

We believe Fire TV, currently available for $99, completes the Amazon Kindle ecosystem and expands the company's reach across all four screens (smartphone, tablet, TV, and desktop). Similar to Amazon's approach with its Kindle eReaders and Fire tablets, we believe Amazon is selling Fire TV at minimal (if any) margin and that monetization will be from incremental digital media consumption across Amazon's media ecosystem. While it is still early in the overall penetration of streaming devices relative to the [approximately] 300M installed TVs domestically, as of yesterday afternoon Fire TV now ranks as the top selling Electronics device on Amazon with Chromecast ranked second; we note that the Roku Streaming Stick, Roku 3, and Apple TV all rank in the top 10 electronic products sold on Amazon. Fire TV includes a month of Prime and as adoption rises, we expect Amazon's media revenue to benefit. While we are positive on the potential of Fire TV and on streaming media devices in general, we remain on the sidelines on Amazon shares until we have more confidence that Paid Units growth stabilizes, that digital media adoption ramps internationally, and in improving international EGM trends.

--Written by Laurie Kulikowski in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs