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Stock Movement

Shares of Amazon.com, Inc. (NASDAQ: AMZN) climbed after the announced tie-up with the National Football league for the streaming of 10 Thursday night games. The stock advanced 0.36 percent to 910.00 in the pre-market session after settling 1.72 percent higher to $906.83. Apparently, the Company has caught the attention of the market players on its new venture for its online video services.

Since Monday, Amazon stock has been following an upward momentum after an upbeat finish from the previous week. As seen in the chart below, Amazon jumped from $848.00 levels to 889.00 levels in the week ended on March 31. The tone persisted in the first few days of the month as the stock touched 906.00 levels.

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The e-commerce juggernaut came up with its standalone streaming service on April 2016, wherein the stock had a momentary boost from 625.00 levels to 635.00 levels at the peak of the enthusiasm of the market players.

In the last quarter of 2016, Amazon Prime Video was made available in more than 200 countries and territories and the debut episode of The Grand Tour had millions of Prime members streaming the first episode in the U.S., U.K., Germany, Austria, and Japan.

Meanwhile, the stock became a hot topic last week as its market capitalization was estimated of reaching $1 trillion. Currently, Amazon has a market capitalization of $432.71 billion and a price earnings ratio of 185.13.

Amazon stock has a one-year high of $908.54 and a one-year low of $587.50, with a 50-day moving average price of 857.78 and a 20-day moving average price of 868.12. Given the leap it had these past few days and the market interest for the ventures of the Company, the stock will likely end today’s session as high as 920.00.

Amazon and NFL Deal

Amazon clearly heightens its line up with the new partnership with the National Football League to stream Thursday Night Football games in the coming season.  As the professional American football league gets more viewers, the expected flood of subscription is anticipated to boost the income of Amazon Prime after this team-up.

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The $99 per year Prime subscription has brought immense contribution in the Company’s revenue. Now, after the agreement was sealed, market experts are anticipating a flock of subscribers, given that Amazon will also stream games produced by either CBS or NBC.

Reports indicated that the American e-commerce company will likely pay around $50 million for the streaming rights to the N.F.L games. Although the amount was obviously higher from the $10 million streaming rights from Twitter last year, the estimated 60 million Prime subscribers can cover up the cost. Additionally, Amazon posted a net sales increased of 27 percent to $136.0 billion for the full year 2016 while the expected first quarter net sales was between $33.25 billion and $35.75 billion with an operating income of approximately between $250 million and $900 million.

Recently, the Company announced that it has greenlit season two of the Emmy-nominated All or Nothing, an Amazon Original Series produced by NFL Films. Based on the press release of Amazon, “this season of All or Nothing will give Amazon Prime members access to an NFL season unlike any that’s been captured on screen.”

Calling for more viewers, Amazon extended the exclusive content agreement with A24, which would make Prime Video the only premium subscription home for all upcoming A24 films.

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