Amazon (AMZN) to Host Video-Streaming Event Today

NEW YORK (TheStreet) -- Amazon (AMZN) will host an event in New York City on Wednesday to detail developments in its video business. The presentation is widely believed to be the launch of a streaming-media device, much like Apple's (AAPL) Apple TV and Google's (GOOG) Chromecast.

Shares have slipped slightly lower ahead of the event which is set to kick off at 11am EDT. By midmorning, the stock had taken off 0.22% to $342.25.

Must Read: Amazon's Streaming Device: What to Expect

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate AMAZON.COM INC (AMZN) 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, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 8.8%. Since the same quarter one year prior, revenues rose by 20.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • AMAZON.COM INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AMAZON.COM INC turned its bottom line around by earning $0.58 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings ($1.97 versus $0.58).
  • The gross profit margin for AMAZON.COM INC is currently lower than what is desirable, coming in at 30.26%. Regardless of AMZN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.93% trails the industry average.
  • AMZN's debt-to-equity ratio of 0.71 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that AMZN's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.67 is low and demonstrates weak liquidity.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

Apple Named the Most Valuable Brand in the World, Adding to Its Luster

Walmart Will Start Offering Meal Kits on Its Website by December

Target Boosts Hourly Minimum Wage to $11

Rev's Forum: 2 Good Reasons to Go With the Flow

A Defining Moment in Food Stocks Is Upon Us