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Home Shopping Stocks Fall Amid Speculation Of Amazon Fire's Entrance Into E-Commerce

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Home Shopping Stocks Fall Amid Speculation Of Amazon Fire's Entrance Into E-Commerce

  • GeekWire reported that Amazon.com, Inc. (NASDAQ: AMZN) has "quietly" rolled out an e-commerce functionality on its Fire TV devices, which may lead to a full scale shopping channel.
  • The report added that a "source with knowledge of the situation" confirmed the experiment has been performing above expectations.
  • Shares of Liberty Interactive Group (NASDAQ: QVCA) and HSN, Inc. (NASDAQ: HSNI) both lost more than 3 percent on Thursday.
  • According to a report by GeekWire, Amazon has been "quietly" testing an e-commerce functionality on its Fire TV devices, which has been performing above expectations, according to a source with knowledge of the situation.

    The report continued that Amazon's e-commerce tests are part of the company's plans to develop its own shopping channel that could rival Liberty Interactive's QVC and HSN's Home Shopping Network. The channel is expected to roll out this year.

    Moves

    Shares of Liberty Interactive and HSN were both lower by more than 3 percent on Thursday. The issues sold off in unison within an hour of the opening bell.

    Related Link: Amazon Banning Sale Of Google's Chromecast & Apple TV?

    Amazon's ambitions appear to be consistent with recent M&A activity, specifically, its acquisition last year of Twitch, an Internet video channel and streaming service for nearly $1 billion.

    Amazon's CEO Jeff Bezos has already stated that his strategy within the hardware business is to "make money when people use our devices, not when they buy our devices."

    Wall Street Pros Unconvinced

    Victor Anthony, an analyst at Axiom, told Benzinga that Thursday's decline in QVC and HSN's stock is related to the reports that Amazon plans to infring their territory. He stated, "Folks are just now paying attention."

    Anthony's statement isn't shared by Jason Bazinet, a media analyst at Citi Research. The analyst acknowledged that the decline in the home shopping stocks could be related to the Amazon's reports, but it "could certainly be something else."

    Image Credit: Public Domain

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