Amazon.com's announcement of a TV set-top box for streaming content was a nonstarter, but the e-commerce story was still compelling, Piper Jaffray's Gene Munster said Wednesday.
"It's a crowded space. It doesn't make a ton of sense for them to be there," he said in regard to the streaming TV device. "The good news is they have a real business around e-commerce that they can focus on when they're not playing with this other stuff."
Amazon.com reports quarterly earnings Thursday after the closing bell.
On CNBC's "Fast Money," Munster said that it was an attempt by the online retailer to create an ecosystem for its customers.
"They just want to make it easier and easier for you to consume their content," he said. "That's why they came out with the Kindle and the Kindle fire, and ultimately why they may come out with an OS for a phone."
Asked if he would prefer Google or Amazon.com, Munster went with the former.
"Ultimately, Google's going to be getting into other areas that are exciting longer-term," he said.
Munster said that he expected Amazon.com to guide down by 6 percent and saw pressure from "bad press" in Germany, one of their largest markets.
But Munster was still a believer in Amazon.com.
"Longer term you still stay long this, but it's hard to predict how this is going to trade tomorrow," he said.
Trader disclosure: On April 24, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long SBUX; Tim Seymour is long YUM; Tim Seymour is short WLT; Steve Grasso is long AAPL; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long GDX; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MJNA; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is funds long ZNGA; Steve Grasso is funds long AAPL; Steve Grasso is funds long NEM; Steve Grasso is funds long OXY; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is short SPY; Karen Finerman is short MDY Long Puts; Jon Najarian is short AAPL Puts; Jon Najarian is short GLD Puts; Jon Najarian is long XLF CALLS; Jon Najarian is long BA; Jon Najarian short BA Calls; Jon Najarian is short RHI; Jon Najarian is short ZNGA Puts; Jon Najarian is long ZNGA; Jon Najarian is long AMZN calls.
