Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, February 25, 2011

Article Excerpt

AMAZON.COM INC., $177.24, symbol AMZN on Nasdaq, will now offer free streaming of movies and TV shows to its Amazon Prime members. These are customers who pay $79 a year to get unlimited two-day shipping from Amazon with no minimum purchase requirements. The company will offer Prime members more than 5,000 movies and TV shows. Netflix (New York symbol NFLX), Amazon’s rival in the Internet movie market, offers about 30,000 movies and TV shows for $96 a year. Amazon’s new service will benefit the company in a number of ways: It will reward Prime members. As well, it will draw attention to the company’s movie and TV-show downloading service, Amazon Instant Video, which lets customers buy or rent more than 90,000 commercial-free movies and TV shows (with prices of up to $3.99 for new releases). Amazon’s outlook is positive, and its expanding presence in streaming movies and TV shows adds to its prospects. However, the stock trades at a high 54 times…