Amazon reports earnings Thursday and investors are eager to hear if the new Kindle might spark some life in the firm’s bottom line!
The device, which Oprah has called her new favorite gadget, began shipping in February and has the same $359 price tag as the old version but is skinnier and has a number of upgraded features like the ability to store many more books and to read text aloud from two small speakers on its back.
The company has not released sales figures for the Kindle, which it started selling in late 2007, but Citi Investment Research analyst Mark Mahaney had estimated that the company sold 500,000 Kindles in 2008.
Analysts polled by Thomson Reuters, on average, expect first-quarter income of 31 cents per share on $4.76 billion in revenue.
In January, Amazon predicted first-quarter revenue between $4.53 billion and $4.93 billion.
What's the trade?
Dan Niles, of Alpha One Capital Partners tells Fast Money not to buy ahead of earnings. “This is a stock that’s up 50% this year and trading at a 30 multiple. I think there are a lot better places to put your money than to chase this. I’d rather own eBay .”