Amazon Eclipses New Sales Tax with Digital Book Venture
Amazon (NASDAQ:AMZN) reached a compromise deal with the California legislature that forces the company to collect sales taxes from its California customers in September 2012. The news levels the field with bricks and mortar retailers such as Walmart (NYSE:WMT) and Target (NYSE:TGT). Amazon is also reportedly working on a venture with book publishers to create a digital book library where readers would pay an annual subscription like Netflix (NASDAQ:NFLX). The news is another attempt to prevent Apple (NASDAQ:AAPL) from taking more market share with iBooks on iPad. Shares ended at $216.56, up 2.45%.
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The company trades at a P/E ratio of about 95 which is much higher than its peers. The company also trades at a sales multiple of 2.4 which is also higher than its industry rivals.
On the technical front shares trade above their rising 50 and 200 day moving averages. The MACD is about to show a bearish crossover while RSI is pointing up at about 56.