Amazon shares trade higher as tech giant unveils new Kindle

Amazon shares opened higher Wednesday supported by a valuation upgrade and the unveiling of its new Kindle eReader.

Amazon shares trade higher as tech giant unveils new Kindle

Amazon shares opened the Wednesday US trading session higher, as the tech giant unveiled its new Kindle e-reader. A new and improved share price valuation, also encouraged invesors.

The Kindle Oasis is packed full with premium features that are expected to impress consumers. Investors buying the stock helped push the Amazon share price up almost 0.50% after the first hour-and-a-half of trading.

Amazon not just focused on Alexa

The new, updated version of the Kindle comes as the device approaches its tenth anniversary. It also highlights that while Amazon may be focussed on its suite of home-linked devices supported by Alexa, it hasn’t forgotten its other customers’ needs.

The Kindle Oasis is a deluxe eReader with many new and improved features. They include:

  • It’s the first waterproof Kindle.
  • A new, larger paperwhite screen.
  • Fast-charging, longer-lasting battery.
  • Facilitates use of audio and e-books on one device.

All of these features are sure to entice a number of consumers, particularly as thoughts of Christmas gifts enter people’s minds.

There are three Kindle Oasis models to choose from. The price for an 8GB Kindle Oasis is £230, a 32GB model will cost £260 and a 3G 32GB version will cost £320. It’s available for pre-order from today, to be shipped on October 31.

Broader developments support share price

Amazon’s commitment to its hardware, at a time when it’s also focused on expanding its physical in-store presence, is providing real encouragement to investors. That’s despite concerns over a potential US IRS tax issue following the back-tax claim from the European Commission.

Credit Suisse is already convinced the tech firm is moving the right direction. It has upgraded its Amazon valuation and now sees Amazon shares worth $1,350 up from it’s previous $1,000 level.

That means it views Amazon as the second most highly valued stock. And it’s being driven, in part, by its Whole Foods purchase.

“The product development perspective is that while most of the headlines around the Whole Foods acquisition have been about price cuts, we believe the real path for Amazon to create lasting shareholder value is through fulfilment and delivery via Prime Now," Credit Suisse analysts wrote in a note to clients.

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