Amazonfresh: Amazon’s Bet In Groceries

Amazon Fresh Service

It might be confusing as to why an online retailer like Amazon (AMZN), which sells nearly everything on this earth, want to dip its nose into groceries delivery, a segment which is more famous for its notoriously thin margins and death of once promising companies like webvan during the dot com era. Does it sound familiar? Oh yes, that is the grocery delivery company which went down in 2001. So why would take the same road? Amazon fresh was being tested in Seattle from 2007 and in June 2013 the company expanded the service to LA as well. The company plans to extend it further to cover close to 40 major areas by 2014.

Amazon Fresh service brings the company in touch with its customers on a more regular basis, or rather on an everyday basis with its same day doorstep delivery. If you happen to be in LA or Seattle, and want the fresh doorstep delivery, you need to shell out $299/annually for an amazon primefresh membership! It will be interesting to see how Amazon, not really popular for its profit margins, handles a full launch of this service over the next year and a half.

CoStar Group Stock Jumps Post Solid Earnings

As we discussed earlier, CoStar Group (CSGP), the online commercial real estate company, turned out to be the real ‘star performer’ of the US internet industry. The company posted amazing earnings results for the quarter ending Jun 2013 with earnings per share of $0.61 vs. expected $0.52. The stock ticked up by 21% post the announcement till date. Also, it has seen a significant decrease in short interest indicating that short sellers are no longer expecting decline in stock price in the near-future. It might be too early to comment on commercial real estate’s future and the overall economy solely based on this performance.

Motorola Dragging Google Stock

Motorola, acquired by Google (GOOG) two years back, is dragging down the overall Google bottom line. Although Google stock price hasn't seen much of a negative impact, of late this is becoming more concerning. Google also needs to address concerns on its new Android phone Moto X’s success; and turnaround of Motorola’s loss into a profit. Google’s competitor Samsung’s mobile device profitability seems to be greater than the overall profitability of Google. The key question in the minds of investors will be as to how will Moto X perform as against Apple iPhone 5 and Samsung Galaxy S4.

Priceline Stock: The giant in the S&P 500

Priceline (PCLN), one of our top stocks, recently announced its earnings for the June 2013 ending quarter and the earnings surprise is a thing of history now. Following the announcement, the stock hit an intraday high of $994.98 and with the price expected to have a further upside, as per target prices issued by various analysts, Priceline is all set to make history being the first company in the S&P 500 stocks to have a price of $1000 or more.
Priceline vs S&P 500
Source: Priceline Vs S&P 500 by Amigobulls

Insider Trading Updates

We all remember the momentous day when Facebook (FB) crossed its IPO price of $38. Following that, Facebook’s Chief Operating Officer (COO) Sheryl Sandberg sold about $91 million worth of shares. Also joining the insider selling list is Blucora (BCOR) director John Iv Cunningham who sold 8,500 shares for a total value of $178,925. The director now directly owns 24,407 shares in the company. The company which provides the online tax service called TaxAct witnessed a dip of 1% yesterday to close at $20.46. We have Blucora as one of our top picks as we continue to love its profitability and sustained earnings growth.

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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