Amazon Sentiment Pre-Kindle 3 Release Actually Worsening

As everyone knows, the Amazon (AMZN) Kindle 3 is coming and lots of folks are hopped up about the new toy from the e-commerce giant.

Surprisingly, Piqqem.com users are voicing slightly bearish sentiment trends on Amazon even as the company ramps into launch of its much anticipated 9.7 inch screen Kindle on Wednesday of this week.

On a scale of 0-to-4 (with four as highest), Piqqem Sentiment for Amazon has declined moderately by six basis points over the past month, from 2.54 at its most recent high point in mid-April to 2.49 as of market close on May 4.

While this means Piqqem users still view Amazon shares in a largely bullish light (above the neutral mid-point on the scale of 2), any negative trend in the sentiment line is a negative for the stock.

Amazon's decidedly cautious forward looking earnings projections likely have exerted downward pressure on the stock, as the company forecast a steep decline in operating margins in the upcoming year. The Piqqem Sentiment number movement implies the market is not yet a believer in the ability of Kindle to provide a meaningful revenue boost to Amazon's top and bottom lines in the near term.

This despite the fact that the Kindle is even outpacing the iPod (AAPL) in terms of device sales during its first year.

It's possible the market has already priced Kindle earnings into Amazon shares, but how many Kindle's Amazon will actually sell could represent a significant upside surprise, not so much with immediate bottom line implications as much as future profitability implications for Amazon.

Comments

[Optionsforme:]

You got be joking Amazon is a bloated pig that sells at a PE of 54 and PEG of 2.6. It may be a good company but its way overvalued and its one of the most manipulated stock in the market. It should be selling at more than $50 and thats with a substantial premium. The strongest suit of Amazon its its constant PR. They have no margins and barely make any money. If it was not for their PR department and analyst who are paid shills this stock would be selling at 30. What a joke.Do you follow the accounting tricks they play every quarter to make the bottom line look better than it is ? You should the sad truth is Amazon can sell but they are hard pressed tio make money and put a lot of make up on their financials. Analyst always give them a pass, lets see, the Citi analyst, oh wait Citi owns 20 million shares, no conflict there.


On May 05 01:08 PM Cetin Hakimoglu wrote:

> Do keep in mind that kindle represents just an infinitesimal slice
> of amazon's total business

May 05 04:12 PM

[Optionsforme:]

Amazon is way overvalued, its momo stock that must play accounting games to show a profit. PE of 54 and PEG of 2.6 for an e-tailer, right.


On May 05 01:08 PM Cetin Hakimoglu wrote:

> Do keep in mind that kindle represents just an infinitesimal slice
> of amazon's total business

May 05 04:14 PM

[Optionsforme:]

Do they make any money or have good margins on any lines ? No.


On May 05 01:08 PM Cetin Hakimoglu wrote:

> Do keep in mind that kindle represents just an infinitesimal slice
> of amazon's total business

May 05 04:41 PM