Market Overview

DA Davidson: New Amazon Studios Leader Bodes Well For The Company's Large Content Investment

Share:
DA Davidson: New Amazon Studios Leader Bodes Well For The Company's Large Content Investment
Related AMZN
The Market In 5 Minutes: Tariffs, NXPI, Powell And More
Citron Says Netflix Bulls Need A 'Reality Check'
Consumer Discretionary Vol Looks A Bit Underdone (Seeking Alpha)

Amid a 6-percent pullback and the filling of a critical executive vacancy, one analyst sees a buy-in opportunity at Amazon.com, Inc. (NASDAQ: AMZN).

The Rating

DA Davidson analyst Tom Forte reiterated a Buy rating on Amazon with an $1,800 price target.

The Thesis

Amazon named NBC Entertainment President Jennifer Salke the new head of Amazon Studios on Monday. The appointment was widely welcomed, Forte said in a note. (See the analyst's track record here.)

“By hiring a new head of Amazon Studios, the company has filled an important void, and, in our view, after a potential period of disruption following the departure of its former head, should be back on track in one of its most significant areas of investment — proprietary video content,” the analyst said. 

The choice of Salke only sweetened the deal, Forte said, and brings studio experience with “This Is Us,” “Glee,” “Modern Family” and “Prison Break,” each of which were major boons to their respective networks.

Forte ranks Amazon behind HBO or Netflix, Inc. (NASDAQ: NFLX) in its ability to attract industry talent, but said it has the potential to produce a blockbuster hit. 

“We are hopeful the combination of Ms. Salke’s hire and Amazon’s reported change in strategy to focus on content with greater potential for mass-market appeal could result in bigger successes for both its future proprietary TV and movie content,” the analyst said.

Price Action

Amazon shares were up 1.64 percent at $1,409.18 at the time of publication. 

Related Links:

Amazon Prime Price Increase Won't Affect Netflix, Roku

Nerd Alert: Amazon To Produce New 'Lord Of The Rings' Series

Latest Ratings for AMZN

DateFirmActionFromTo
Jun 2018DA DavidsonMaintainsBuyBuy
Jun 2018SunTrust Robinson HumphreyReiteratesBuyBuy
May 2018Telsey Advisory GroupInitiates Coverage OnOutperform

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

Posted-In: Davidson Jennifer Salke NBC EntertainmentAnalyst Color Price Target Reiteration Top Stories Analyst Ratings Best of Benzinga

 

Related Articles (AMZN + NFLX)

View Comments and Join the Discussion!