Will These Retailers Get Burned by Amazon’s Kindle?

According to Piper Jaffray, about 71% of shoppers would prefer to buy the Amazon (NASDAQ:AMZN) Kindle Fire tablet computer directly from manufacturer Amazon (NASDAQ:AMZN) rather than retail stores (NYSE:XRT).

This is not good news for retailers such as Best Buy (NYSE:BBY), Wal-Mart (NYSE:WMT) and Staples (NASDAQ:SPLS). These retailers were looking forward to good sales of these hot gadgets this holiday season. At the very least, they were hoping these devices would increase foot traffic and lead to sales of other items. Unfortunately, their hopes may not materialize given a growing shopper preference for e-commerce over brick-and-mortar shopping.

Here are how these stocks are performing on the news:

  • Amazon (NASDAQ:AMZN): The shares recently traded at $200.60, down $26.55, or 11.69%, on the day.  The shares have traded in a 52-week range of $156.77 to $246.71 and its market capitalization is $91.44 billion.  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.
  • Best Buy (NYSE:BBY): The shares recently traded at $26.06, up $0.01, or 0.04%, on the day.  The shares have traded in a 52-week range of $21.79 to $45.63 and its market capitalization is $9.45 billion.  About the company: Best Buy Co., Inc. retails consumer electronics, home office products, entertainment software, appliances and related services through its retail stores, as well as its web site. The Company also retails pre-recorded home entertainment products through retail stores.
  • Walmart (NYSE:WMT): The shares recently traded at $56.78, up $0.07, or 0.12%, on the day.  The shares have traded in a 52-week range of $48.31 to $57.90 and its market capitalization is $195.70 billion.  About the company: Wal-Mart Stores, Inc. operates discount stores, supercenters, and neighborhood markets. The Company’s discount stores and supercenters offer merchandise such as apparel, housewares, small appliances, electronics, and hardware. Walmart’s markets offer a full-line supermarket and a limited assortment of general merchandise. The Company operates nationally and internationally.
  • Staples (NASDAQ:SPLS): The shares recently traded at $14.33, down $0.14, or 0.97%, on the day.  The shares have traded in a 52-week range of $11.94 to $23.75 and its market capitalization is $10.17 billion.  About the company: Staples, Inc. retails office supplies, furniture, and technology. The Company’s customers include consumers and businesses in the United States, Canada, the United Kingdom, and Germany. Staples serves its customers through office superstores, mail order catalogs, the Internet, and a contract business.

(Note: Selected financial data are sourced from Google Finance.  All data are assumed to be accurate.)

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