Ecommerce giant Amazon.com, Inc. (AMZN) recently announced that it will launch a new range of smart TVs in collaboration with consumer electronics retailer Best Buy. The TVs will be from the stable of Pioneer and Toshiba.
Following the news, shares of the company declined 1.2% on Thursday. The stock pared its losses slightly and closed at $3,484.24 in extended trade.
Under the Fire TV alliance, Amazon and Best Buy have sold millions of TVs since 2018. While the Pioneer smart TV will feature picture-in-picture functionality and High Dynamic Range specs such as HDR10 and Dolby Vision, the Toshiba series will utilize far-field voice natively through a four-array microphone built into the TVs.
The Vice-President of Amazon Entertainment Devices and Services, Daniel Rausch, said, “Today, we’re thrilled that Best Buy is bringing Pioneer back to the TV space and helping Toshiba to showcase the power of far-field voice – all with Fire TV built-in.” (See Amazon stock chart on TipRanks)
Recently, Morgan Stanley analyst Brian Nowak reiterated a Buy rating on the stock with a price target of $4,300. The analyst’s price target implies upside potential of 23.4% from current levels.
According to the analyst, the company’s plan to launch its own Amazon-branded TV in the U.S. as soon as October can help the company in the expansion of its Internet-of-Things utility, functionality, touch points and consumer data sets. Further, voice-based retail searching is likely to receive a boost.
Consensus among analysts is a Strong Buy based on 31 unanimous Buys. The average Amazon price target of $4,200.80 implies upside potential of 20.6% from current levels.
Amazon scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares of the company have gained 7.3% over the past year.
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