Thursday, January 21, 2010

Apple's Tablet Won't Wreck Amazon

By Eric Jackson

RealMoney Contributor

1/21/2010 1:03 PM EST

With the coming of Apple's (AAPL - commentary - Trade Now) tablet next week, what's the short-term impact on Amazon's (AMZN - commentary - Trade Now) stock price? The short answer: Not much. The longer answer is it might be a good time to re-enter the stock.

Amazon's stock has been on a roll since it released its earnings back in October. The stock jumped from $93 to $114, at which point many investors said the stock had got ahead of itself. I remember one investor who exited after the earnings announcement, who tweeted, "I love the stock but it's now at crazy levels."

It's gotten crazier.

That good momentum carried it through the holiday shopping season and beyond. (Question: If we all continue to increase our buying online vs. in-store every year for another 10 years, can we still call the shift a trend -- or will it be a natural state?) The stock hit $140 a few days after Christmas; it's now off 10% from those levels.

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