Filed under: Major movement, Bad news, Apple Inc (AAPL), Amazon.com (AMZN), Options, Technical Analysis

Amazon.com Inc. (NASDAQ: AMZN) shares are declining after news of a new iTunes rental plan by Apple (NASDAQ: AAPL) threatens to take market-share away from the online-retail giant. According to a report on Bloomberg, AAPL will let iTunes users rent movies as well as buy them. AAPL plans in the near future to add Warner Bros. and Fox as suppliers. This could be a bad sign for AMZN, as AAPL could easily take advantage of its online-distribution system to take market share away. If you think this stock won’t be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on AMZN.

After hitting a one-year low of $36.30 last January, the stock hit a one-year high of $101.09 in October. This morning, AMZN opened at $87.56. So far today the stock has hit a low of $82.05 and a high of $87.80. As of 12:30, AMZN is trading at $83.73, down $4.13 (-4.7%). The chart for AMZN looks bullish but deteriorating, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

Continue reading Amazon.com (AMZN) lower on Apple’s online movie plans

Permalink | Email this | Comments

Share This

This entry was posted on Wednesday, January 9th, 2008 at 4:10 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.