Amazon stands to encounter a big challenge from Apple’s expected announcement of the iPad 3 on Wednesday, but one analyst still sees opportunity.
Citigroup analyst Mark Mahaney said Tuesday on “Fast Money” that things between the two companies will heat up soon.
“You’ve got, clearly, a product war between these two companies,” he said. “Apple’s great at products. But I’m not counting Amazon out. They’ve done a phenomenal job with the Kindle.”
Several versions of the Kindle, as well as the new Kindle Fire, will help Amazon’s bottom line, especially as the device has helped it capture one-third of the tablet market.
Amazon continued to generate cash at a strong rate, Mahaney said, but Apple remains innovative.
Lower price points and a smaller size, he said, has made the Kindle especially popular among women — but that advantage might not last.
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“By the way, I bet you Apple comes after this market, too, because I think they may realize they made a mistake by leaving it to somebody else,” he added.
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Trader disclosure: On March 6, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: J. Najarian is long IBM call spreads; J. Najarian is long QCOM call spreads; J. Najarian is long GDX call spreads; J. Najarian is long GDXJ call spreads; J. Najarian is long CRM call spreads; J. Najarian is long FIO call spreads; J. Najarian is long KERX call spreads; Finerman is long (AAPL); Finerman is long (BAC); Finerman is long (JPM); Finerman is long (HPQ); Finerman is short (SPY); Finerman is short (IWM); Finerman is short (MDY);
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