Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) have been at odds on several fronts. These two tech giants have faced down on everything from shopping to video to cloud-based software. Now, reports suggest that Amazon plans to take on Google on one more front: streaming sports.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The reports note that Amazon is working on its own streaming sports app. While Amazon already has a sports presence with its Prime Video platform, Amazon is apparently planning to roll out an app just for streaming sports. Reports suggest the app will be used to better call attention to the sports available on Prime Video.
It’s unclear as of yet when the app will go live—if it ever does—but Amazon’s Andy Jassy did make it clear that Amazon plans to spend on live sports regardless of the budget cuts currently seen in the company. Jassy also previously referred to live sports as a “unique asset.”
What also wasn’t clear was what kind of pricing Amazon would put on such an app. Certainly, Amazon would have an opportunity to use that platform as a great launching point for involved and engaged viewers of advertising material. However, the costs to obtain streaming rights for sports are often higher, as Google found out recently with its plans to add NFL Sunday Ticket to its YouTube TV platform.
Amazon is down only slightly in Wednesday afternoon’s trading, likely because this is just one part of a massive conglomerate. Analyst consensus overwhelmingly considers Amazon a Buy, with over 11 times the number of Buy recommendations as Hold. Amazon’s average price target of $140.03 gives it an upside potential of 70.94%.
Special end-of-year offer: Access TipRanks Premium tools for an all-time low price! Click to learn more.
