NEW YORK (TheStreet) -- Amazon (AMZN) is reportedly in the process of developing two smartphones, one a low-end device and the other with state-of-the-art eye-tracking technology. TechCrunch reports the more expensive model will have four forward-facing cameras tracking eye and head movements to shift and imitate a 3D interface. The project is still in development and no release timeframe has been confirmed.
Amazon's latest release, the Kindle Fire HDX, received generally positive reviews on Wednesday, though many critics said the lack of Google (GOOG) Play support detracted from the overall experience.
At the time of publishing, an Amazon had not yet responded to TheStreet's request for comment.
Amazon shares are down 1.2% to $316.68, as of 11:40 a.m. EST. The S&P 500 is down 1.04%.
TheStreet Ratings team rates Amazon as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate Amazon a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- AMZN's revenue growth has slightly outpaced the industry average of 17.8%. Since the same quarter one year prior, revenues rose by 22.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet & Catalog Retail industry. The net income has significantly decreased by 200% when compared to the same quarter one year ago, falling from $7 million to -$7 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Internet & Catalog Retail industry and the overall market, Amazon's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: AMZN Ratings Report