Amazon (NASDAQ:AMZN) is taking disintermediation to a new level. Amazon (NASDAQ:AMZN) announced last month they will publish 122 books this fall in an array of genres, in both physical and e-book form. Will Amazon impact publishing like it did book stores?
Amazon (NASDAQ:AMZN) was the pioneer in selling digital books, suggesting to readers that they don’t need brick-and-mortar stores. The internet goliath is now urging writers to do away with publishers. “The only really necessary people in the publishing process now are the writer and reader,” said Amazon (NASDAQ:AMZN) exec Russell Grandineti. The company has put its new-born publishing business in the fast lane by appointing publishing veteran, Laurence Kirshbaum, to launch titles in fiction and non-fiction. “Publishers are terrified and don’t know what to do,” said Dennis Loy Johnson of Melville House. There have been rumors that Amazon is courting top authors of established publishers.
What’s really the bottom line on Amazon’s (NASDAQ:AMZN) publishing record so far? Analyst Laura Hazard Owen dug into numbers: “Of the 149 titles Amazon has published since 2009, 30—about a fifth, not a bad hit rate—were Kindle bestsellers at some point in 2011, at positions ranging from 1 to 98. Most of the books became Kindle bestsellers when Amazon sold them at promotional prices.” (The average price of an Amazon Publishing book that made the Kindle bestseller list was $2.77, compared to the average Amazon Publishing e-book price of $6.91, as mentioned above.)
Here’s how Amazon’s stock (NASDAQ:AMZN) has been performing:
- Amazon.com Inc. (NASDAQ:AMZN): The shares recently traded at $218.29, up $2.67, or 1.24%. Its market capitalization is $99.27 billion. They have traded in a 52-week range of $156.77 to $246.71. Volume today was 5,227,583 shares versus a 3-month average volume of 7,073,890 shares. The company’s trailing P/E is 115.07, while trailing earnings are $1.90 per share. About the company: Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company’s products include books, music, videotapes, computers, electronics, home and garden, and numerous other products. Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers. Get the most recent company news and stock data here >>