Why Instant Video Isn't a Catalyst for Amazon Stock

Did you know that Amazon.com (NASDAQ: AMZN  ) has officially unveiled 14 pilot episodes for original series? There doesn't seem to be nearly as much interest as the e-tailer would like, which isn't good news for Amazon stock.

Founder Jeff Bezos has made big investments trying to turn Amazon Instant Video into a legitimate Netflix (NASDAQ: NFLX  ) alternative. While it may be the best option at this point, it's worth noting that, of the pilots, an offshoot of the movie Zombieland appears to be most watched, with some 4,700 reviews. Alpha House, starring John Goodman, ranks next at just under 2,100 reviews, and it declines sharply from there, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following interview with the Fool's Erin Miller.

By contrast, Netflix's most recent original program -- the horror series Hemlock Grove -- rates four out of five stars from more than 270,000 reviewers as of this writing. More than 890,000 have rated House of Cards. Amazon stock is a good buy because of its leadership positions in e-commerce and Internet infrastructure delivered as a service. Instant Video isn't a factor, nor is it a serious threat -- yet -- to Netflix's long-term profit plan, Tim says.

Do you agree? Please watch the video to get Tim's full take, and then let us know whether you'd buy, sell, or short Amazon stock in the comments box below.

The investing case for Netflix has become complicated by competition and the streaming sensation's global ambitions. That's why our analysts have created a premium research report to address the issues surrounding the business. Click here to get your copy, and we'll tell you whether the stock is a fit for your portfolio now.


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2416130, ~/Articles/ArticleHandler.aspx, 12/22/2014 5:57:02 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement