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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Doren who wrote (161195)	5/16/2013 9:47:27 PM
From: ChrisGillette	2 Recommendations Read Replies (6) \| Respond to of 164684

<<Is anyone else thinking about shorting AMZN?>> It's been a few months since your post, but I started a short position today and am looking for sub-$200 over the next 12 months. While valuation, sales tax issues, etc. have been discussed ad nauseam, I haven't heard much about the threat posed by Netflix. Despite that Amazon is likely spending $1 billion per year trying to compete with Netflix, the latest Sandvine figures indicate that Amazon's subscription VOD business is going nowhere. sandvine.com sandvine.com The SVOD trends are important for a couple of reasons 1 - Amazon is throwing $1 billion per year down the drain. And in order to gain traction, Amazon faces a Sophie's Choice of either doubling down on content spend or acquiring Netflix for a significant premium ($15-20 billion?). 2 - Amazon's Kindle strategy is to sell hardware at cost and then make money on digital sales. But without traction in SVOD, it's questionable whether digital video sales will ever pan out. 3 - As Netflix continues to ramp content spend, Amazon's catalog DVD business will likely suffer as there'll be less of a need to purchase this type of content.