Why Did Amazon (AMZN) Stock Climb Today?
Amazon AMZN saw its stock price jump over 2.5% through mid-morning trading Tuesday on the back of a relatively staggering amount of positive news. This includes the expected launch of multiple new Alexa devices, Amazon’s strong showing at the Emmys, and a possible banking push.
Recent News
Amazon joined Apple AAPL not too long ago as just the second publicly listed U.S. company to be valued at $1 trillion. AMZN stock had slipped slightly since then. But Amazon’s brief decline didn’t last long and investors seem to have reacted positively to a CNBC report that said the e-commerce giant is ready to roll out new Alexa devices.
Jeff Bezos’ company plans to introduce “at least 8” voice-controlled devices, which are said to range from a microwave to a subwoofer. The new devices will either have the Alexa voice assistant built into the product or they will be Alexa-enabled, and could be officially revealed by the end of the month. The prevalence of voice assistants and voice-controlled devices has continued to grow, with everyone from Apple to Alphabet GOOGL all offering their own.
Emmys Success
Netflix NFLX boasted the most Emmy nominations this year, dethroning HBO’s T insane run at the top. In the end, the streaming TV giant took home 23 awards, which tied HBO for the top spot. Meanwhile, Amazon continued to prove that its push into original content is working. Amazon grabbed eight awards, which helped it tie for fifth with CNN.
Amazon Prime became the first streaming service to win best comedy for its The Marvelous Mrs. Maisel. Investors should welcome these awards because hit series that receive critical acclaim is what as helped HBO become a dominant player in TV for nearly two decades. Going forward, Amazon is poised to spend more and more money to roll out television shows and movies, while also diving deeper into live sports.
Banking
Reports that Amazon was in talks with banks, including J.P. Morgan Chase JPM to create a checking account service for Prime customers first began to surface in March. Now, a new survey from consultant giant Bain & Co found that roughly two-thirds of Amazon Prime members would be willing to test a free online Amazon bank account.
It is worth noting that only 37% of non-Amazon customers said they would be willing to try an account with the e-commerce giant. Nonetheless, the 6,000-person survey helps to highlight just how important online and digital banking and payments have become. The likes of PayPal PYPL and Square SQ continue to drive the big banks to offer more peer-to-peer and digital-first platforms. And Amazon’s entrance would mark yet another industry and potential revenue stream for the e-commerce company to draw from that would likely help support another venture down the road.
Bottom Line
Amazon is currently a Zacks Rank #2 (Buy) based, for the most part, on its strong positive upward earnings estimate revision trends for the current quarter, as well as for fiscal 2018 and 2019. Plus, the news today mostly highlights the firm’s newer growth projects. Meanwhile, Amazon is still an industry leader in cloud computing, coming in far above second-place Microsoft MSFT. And the company’s core e-commerce business looks as strong as ever.
5 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market.
Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.
Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Square, Inc. (SQ) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
AT&T Inc. (T) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
