Market Overview

What Alexa On Amazon's Fire TV Means For Netflix, Roku, Spotify, Comcast

Share:
What Alexa On Amazon's Fire TV Means For Netflix, Roku, Spotify, Comcast

On Thursday, Amazon.com, Inc. (NASDAQ: AMZN) unveiled its Fire TV Cube, which enables voice control of TVs and other home entertainment devices.

The tiny box has big disruptive potential.

The Rating

Morgan Stanley analysts Brian Nowak, Benjamin Swinburne and John Colantuoni maintained an Overweight rating on Amazon with a $1,700 price target.

The Thesis

Morgan Stanley considers the device's compatibility with Comcast Corporation (NASDAQ: CMCSA), DISH Network Corp (NASDAQ: DISH) and DirectTV a plus for the cable and satellite operators, who are mid-transition from pay TV to connectivity and will profit from availability on more devices.

“Whatever ceding of customer connectivity that comes from allowing pay TV content distribution over third-party devices is likely offset by the capital savings associated with costly set-tops and truck rolls,” the analysts said in a Thursday note. 

The Fire TV Cube presents undeniable competition for Roku Inc (NASDAQ: ROKU), but its effect on media companies is less certain, the analysts said. Over-the-top devices could boost content competitors like Netflix, Inc. (NASDAQ: NFLX) and weigh on live TV ratings, but they could also increase discoverability of broadcast content to increase access and viewership.

Finally, the devices improve accessibility of streaming services like Spotify Technology SA (NYSE: SPOT) and may drive household penetration, according to Morgan Stanley. 

Price Action

Amazon shares were down 0.4 percent at the time of publication Friday. 

Related Links:

Insurance Stocks Shaken Amid Report Amazon Could Enter Home Insurance Market

Amazon's Jeff Bezos: World's Richest Person Doesn't Crack The Top 50 List Of Philanthropists

Photo courtesy of Amazon.

Latest Ratings for AMZN

DateFirmActionFromTo
Mar 2020Deutsche BankMaintainsBuy
Mar 2020WedbushMaintainsOutperform
Feb 2020Aegis CapitalMaintainsBuy

View More Analyst Ratings for AMZN
View the Latest Analyst Ratings

 

Related Articles (AMZN)

View Comments and Join the Discussion!

Posted-In: Alexa Amazon Fire TVAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
PECFRAMaintains8.0
HUNCFRAUpgrades16.0
CCCFRADowngrades11.0
VOYAPiper SandlerMaintains58.0
PRUPiper SandlerMaintains64.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com