Sizzling Service Stocks | Amazon (AMZN), Walt Disney (DIS), NetFlix (NFLX)

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Amazon.com, Inc. (NASDAQ: AMZN)

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AMZN, the well known e-commerce conglomerate edged lower in today’s trading even after the unveiling of new products to shore up its voice system Alexa and Amazon Echo, which was released to the public for purchase just earlier this week.  According to thestreet.com, Amazon trotted out its Alexa Skills Kit, which is a collection of software tools to make it easier for developers to create voice-driven capabilities for Alexa, according to Amazon. It also unveiled its Alexa Voice Service that aims to allow hardware developers to integrate Alexa into Internet devices with a small number of code lines. And finally, Amazon created its $100 million developer support fund calledThe Alexa Fund.

Lastly, AMZN has allocated $100 million dollars to a developers fund which will support developers who wish to create voice products for the company’s environment.

Amazon.com, Inc. (Amazon.com), incorporated on May 28, 1996, is an e-commerce company. The Company offers a range of products and services through its Websites. The Company’s products, offered through consumer-facing Websites, include merchandise and content that the Company purchases for resale from vendors and those offered by third-party sellers. The Company offers its own products as well as third-party products across various categories, through its retail Websites and through its mobile Websites and applications. It also manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, Echo and Fire phones. Reuters.com

Walt Disney Co (NYSE: DIS)

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Shares of DIS traded at new life time highs yesterday after the company announced they would be raising their dividend by 15%, and in addition, pay dividends twice a year instead of once.

Along with the efficient ways DIS continues to return capital to shareholders, the company also is extremely diversified within the entertainment industry. Theme parks, movies, retail products, and live sports just to name a few. All these factors equate to a very growth oriented company focused on long term success and a great stock to add to a portfolio that is sure to consistently deliver returns.


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The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company operates in five segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. The Media Networks segment operates broadcast and cable television networks, domestic television stations, and radio networks and stations; and is involved in the television production and television distribution operations. Its cable networks include ESPN, Disney Channels, and ABC Family, as well as UTV/Bindass and Hungama. Yahoo! Finance

NetFlix, Inc. (NASDAQ: NFLX)

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NFLX has been the center of attention for traders over the past week as activist investor Carl Icahn tweeted out that he had sold the balance of his NFLX holdings, raking in nearly $2 billion in profit since he bought the stock back in 2012 for around $58 a share.

Citigroup had also downgraded the stock to Neutral from Buy with a $722 price target.

Citigroup’s Notes:

We are downgrading NFLX to Neutral from Buy for 4 main reasons:

  1. Shares are up 99% YTD, 43% since the 1Q15 report, 49% since our 4/10/15 upgrade, and now trade only 6% below our $722 target;
  2. While we’ve presented an upside case of more than $950/share, we believe investors are unlikely to ascribe this full value until there are more signs of traction in recently launched markets, which may not be imminent;
  3. In each of the past three years, NFLX shares have consistently sold off meaningfully following the 2Q and 3Q earnings reports;
  4. The ratio of sell-side Buy ratings has only been this high once before (and that was nine years ago).

To be clear, this is not a call on NFLX’s 2Q results or 3Q guidance (which we believe are not at risk), and we remain positive on the long-term growth outlook for Netflix.

Netflix is the world’s leading Internet television network with over 62 million members in over 50 countries enjoying more than 100 million hours of TV shows and movies per day, including original series, documentaries and feature films. Members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments. NetFlix.com

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