Amazon Stock Surges This Week, Fueled By Growing E-Book Market

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Amazon’s (NASDAQ:AMZN) shares rose an impressive 4 percent on Tuesday, following a note written by Morgan Stanley’s Scott Devitt on his projections of the growing e-book market.

Devitt’s initial estimate of e-book sales was 567 million; however, that number was revised Tuesday to some 859 million for 2012. According to Devitt via Reuters, Amazon’s sales likely counted for about 383 million of those sales. This number represents Amazon’s 45 percent share of the e-book market.

These stocks are hitting our Profit Targets. Click here now to discover winning stocks!

Devitt quoted some recent data provided by Amazon, stating that based on studies, readers were shown to read about 4.6 times more after purchasing an e-reading device than before the purchase. Amazon’s strategy has been to market the devices themselves at near cost, and rely on e-book sales and other apps to make up the profit gap — a strategy, that according to Mr. Devitt, has been working…

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business