) is facing strong competition from
Headquartered in Cottonwood Heights, Utah, Overstock.com is an
American online retailer best known for selling products other
than books. Recently, however, the company entered the realm of
print titles and has even slashed prices considerably.
The company has announced to match Amazon's prices on all its
printed books. Additionally, 15% rebates on book purchases will
be given to members of its $20-annual free-shipping loyalty
Over the past year, Amazon has been taking every possible step
to expand its catalog and remains one of the favorite players for
book lovers in the fast-growing ecommerce market. However,
Overstock, not widely known for its book offerings, is trying to
change the scenario by beating Amazon at price. Starting late
July, Overstock.com offered books at 10% lower price than
To counter the move, Amazon also lowered the prices on many
titles which again prompted Overstock to lower their prices,
leading to a big price war. With huge discounts being offered by
Overstock.com, Amazon needs to put in its best efforts to have a
successful business with high quality books in its list.
However, the book business is changing rapidly due to the
increased customer adoption of Kindles, iPads and other devices
that are making e-books more attractive than hardcovers. Amazon
with its Kindle Fire has strongly penetrated the market and has
now more than 60% market share in e-readers due to its attractive
According to a report from PwC (PricewaterhouseCoopers), the
trade eBooks (excluding educational publications) will reach $8.2
billion in sales by 2017, while printed book sales are expected
to fall from $11.9 billion in 2012 to $7.9 billion in 2017.
Though Amazon remains one of the leading players in the
fast-growing ecommerce market, it reported a loss of 1 cent in
the first quarter, which missed the Zacks Consensus Estimate by 5
cents. Also, revenues of $15.70 billionwere down 2.3%
sequentiallybutup 22.4% from the year-ago quarter.
Amazon has a Zacks Rank #5 (Strong Sell). Other stocks that
are performing well at current levels include
), all carrying a Zacks Rank #1 (Strong Buy).
AMAZON.COM INC (AMZN): Free Stock Analysis
OVERSTOCK.COM (OSTK): Free Stock Analysis
SILICOM LIMITED (SILC): Get Free Report
SANDISK CORP (SNDK): Free Stock Analysis
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