Amazon (AMZN) To Bring Prime Video To Apple TV?
Zacks Investment Research | May 12, 2017 12:35AM ET
Amazon.com, Inc. (NASDAQ:AMZN) is reportedly looking to offer Amazon Prime Video app on Apple's (NASDAQ:AAPL) Apple TV.
There are rumors that Apple will make an official announcement at its annual Worldwide Developers Conference (WWDC) on Jun 5 in San Jose, CA.
Prime’s video app is expected to go live on Apple TV later this summer.
If rumors are to be believed, Amazon and Apple have settled their ongoing differences over the “acceptable business terms” that Jeff Bezos had mentioned in a conference last summer, when he was asked why Amazon was not selling Apple TV.
Notably, Amazon stopped selling Apple TV boxes in 2015 citing the absence of Prime Video service on Apple TV that could have disappointed customers.
But now it appears that the two camps have decided to live in harmony as far as their video efforts are concerned. There are speculations that Amazon might resume selling Apple TV boxes.
Factors Leading to the Possible Settlement of Issues
Though the reasons behind the apparent reconciliation are not clear, it appears that Apple is now desperate to wipe off the biggest drag on sales of Apple TV.
As far as Amazon is concerned, it is always looking to diversify its offerings for Prime members. The company’s current focus is on building video content, primarily for Prime subscribers as the growth prospects in that market are considerable.
Coupled with this, the presence of Prime Video on Apple TV could get more people to Prime and generate increased sales for Amazon.
Amazon.com, Inc. Net Income (TTM)
We note that year to date Amazon stock has underperformed the Zacks Internet Commerce industry over the last one year. Its share price has appreciated 27.4% compared with the industry’s gain of 31.4%.
Despite this underperformance, we believe there are a lot of factors that could turn the wheel in favor of Amazon such as Prime expansion, its grocery initiatives and efforts around AWS. The company capitalizes largely on its execution strength, robust performance and technological prowess.
Zacks Rank and Stocks to Consider
Currently, Amazon is a Zacks Rank #3 (Hold) stock. Better-ranked stocks in the broader technology sector include Marchex, Inc. (NASDAQ:MCHX) and Monolithic Power Systems, Inc. (NASDAQ:MPWR) , each carrying a Zacks Rank #2 (Buy). You can see
Get The News You Want
Long-term expected earnings per share growth rates for Marchex and Monolithic Power are 15% and 17%, respectively.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.