NEW YORK (TheStreet) -- Shares of Amazon.com (AMZN) are gaining 2.35% to $332.40 in late-afternoon trading on Tuesday after the company announced the availability of T2 instances, a new Amazon Elastic Compute Cloud designed to reduce costs for applications that don't require sustained high CPU performance.
The T2 instances are the lowest-costing Amazon EC2 options and are ideal for web servers, developers, and small data bases, the company said.
T2 also gives customers high-performance storage options when paired with the Amazon Elastic Book Store.
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Separately, Amazon may also be seeing a boost from a BookStats report which states the bulk of book sales in 2013 where made online, the report estimates U.S. book publishers earned $7.45 billion from the sale of online books and e-books, compared to $7.12 billion from physical sales.
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 increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."