Amazon (AMZN, $1,607.95) spent $47 million on film fest movies - Is Netflix (NFLX, $356.87) watching?
Amazon is apparently upping the ante against video streaming leader Netflix.
Planning to release 30 original movies every year and having splurged a record $47 million for the rights to stream Sundance Film Festival’s five independent films, Amazon seems gung-ho on beefing up content and boosting subscriber growth for its video streaming portal Prime.
Amazon Studios chief Jennifer Salke, who joined the company in May, indicated (in an interview to The Hollywood Reporter) that expanding Prime membership and attracting new members were among her primary goals for the streaming platform. Amazon is estimated to have spent $5 billion on video content in 2018, compared to $4 billion it spent in 2017. Netflix spent an estimated $8 billion on content in 2018.
It is not just Amazon that is gearing to give Netflix increased competition. Apple Inc. has reportedly invested more than $1 billion into producing original content this year, according to the Wall Street Journal. The iPhone maker is increasingly focusing on its services businesses, and its TV streaming service could be a key piece of that strategy. Apple is expecting to increase the number of paid subscribers for its streaming platform to 500 million by 2020, up from the current 360 million. On the other hand, Disney is set to launch its own online streaming service Disney+ in 2019.
Aroon Indicator for AMZN shows an upward move is likely
AMZN's Aroon Indicator triggered a bullish signal on October 03, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 297 similar instances where the Aroon Indicator showed a similar pattern. In of the 297 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 28, 2024. You may want to consider a long position or call options on AMZN as a result. In of 77 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMZN advanced for three days, in of 334 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AMZN moved out of overbought territory on September 25, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 48 similar instances where the indicator moved out of overbought territory. In of the 48 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 70 cases where AMZN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMZN turned negative on October 23, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMZN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMZN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.340) is normal, around the industry mean (4.356). P/E Ratio (44.862) is within average values for comparable stocks, (71.163). Projected Growth (PEG Ratio) (1.785) is also within normal values, averaging (1.293). Dividend Yield (0.000) settles around the average of (0.024) among similar stocks. P/S Ratio (3.309) is also within normal values, averaging (6.077).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a provider of on-line retail shopping services
Industry InternetRetail