Amazon To Do Well Despite Obstacles: Barron’s
Amazon.com (NASDAQ: AMZN) stock has reacted badly to the news of the change in the pricing model of its bookstore. According to Barron’s, concerns over the impact of the change in the pricing model have been overblown. Even in the unlikely scenario of all the publishers switching to the agency model, Amazon is expected to retain its market leadership position.
Amazon is also likely to fare well in the Kindle vs. iPad (NASDAQ: AAPL) war, since the iPad is priced much higher than the Kindle. Amazon already has about 3 million active readers in its subscriber’s base. These people have little reason to make a shift to other platforms.
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