NEW YORK (TheStreet) -- Shares of Amazon.com (AMZN) are down 1.88% to $321.66 in midday trading Monday, a correction after the world's largest online retail store's stock jumped 3.5% to $327.69 on news that it had resolved a bitter months long dispute with French book publisher Hachette Book Group, Reuters reports.
However, Amazon's reputation over the negative publicity could be affected as well as its bottom line, after delaying shipments of hard copies of Hachette-published books ordered through its site, the New Yorker reports.
Amazon approached Hachette for the renewal of their contract one month before the expiry of existing contract in April, hoping to reduce the prices of most of its e-books.
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After the publisher refused to agree to the retailer's terms, Amazon decided to extend terms of the existing contract.
Last Thursday the two companies reached a multi-year agreement for e-book and print book sales after months of bitter fighting centered around the dispute over which party controlled the right to set prices for e-books and how much of a cut Amazon would take.
Separately, TheStreet Ratings team rates AMAZON.COM INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMAZON.COM INC (AMZN) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself, poor profit margins and feeble growth in its earnings per share."