Amazon.com (AMZN) Downplays Kindle Sales; New Models in the Works?

Tags: AMZN
26 Aug 3:28am
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While Amazon.com (AMZN: sentiment, chart, options) remains tight-lipped on official sales figures for its Kindle e-book reader, that hasn't stopped analysts at Citigroup and Stifel, Nicolaus & Co. from offering up their own expectations for Kindle sales. However, AMZN is apparently trying to reign in these elevated expectations.

According to an article at Seattlepi.com, McAdams Wright Ragen analyst Tim Bueneman said that the company informed him "that the Kindle is definitely selling very well, but they also said the analysts and reporters giving out these extremely high estimates 'did not run them by company.'"

Bueneman also noted that "There are already several new, improved versions of the Kindle in the works... But AMZN has no plans, however, for an MP3 music audio version. We guess the new version will have improved interface operating controls. This has been an issue with some buyers."

On the sentiment front, investors are clearly not buying into the Kindle hype. AMZN's Schaeffer's put/call open interest ratio (SOIR) of 1.54 ranks above 83% of all those taken during the past year, while more than 10% of the stock's float is sold short. If the company can post solid Kindle sales figure (assuming it ever actually releases those sales figures), we could see a bit of a shock roll through this bearish bunch of investors, potentially resulting in added buying pressure for the shares.


Copyright Schaeffer's Investment Research http://www.schaeffersresearch.com

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