Biz Brief: Sell Amazon, Buy Apple Stock Call
"We remain negative on Amazon and continue to highlight our opinion that the consumer adoption of the Kindle is likely to slow to the niche of dedicated readers," wrote Colin Gillis in a note to clients.
The Kindle's price of $259 is too high to compete against the iPad at $499, the analyst said. And in another negative for Amazon, Apple announced that more than 5 million books have been downloaded using Apple's iBooks store, or about 2.5 books per iPad, Gillis wrote.
As for Apple, the Gillis expects it to sell 1 million iPhone 4's this month, as well as announce the 100 millionth sale of a device running the company's iOS operating system, among other catalysts for the stock.