Amazon (AMZN) has announced the end of its Freevee streaming service. The ad-supported programming has been a staple of Amazon Prime Video for years. However, the tech leader has decided to restructure its entertainment business, phasing out Freevee, which has been offered to subscribers as a free service. Now all Freevee content will be shifted to remain under Prime’s video brand, meaning subscribers can expect few, if any, changes.
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What Does This Mean for Amazon Stock?
This development isn’t likely to impact Amazon stock in the long or short term. While shares are down today on negative market momentum, Amazon has multiple positive catalysts coming up, including a new discount shopping option. Additionally, it is planning on launching its own chips to rival industry leader Nvidia (NVDA). AMZN stock has been gradually trending upward for the past five days and is likely to shake off today’s volatility.
Given Amazon’s size, resources and exposure to many different industries, it is unlikely that the decision to fold Freevee into Prime Video will do much to impact share prices. Amazon still has plenty of original content to offer subscribers and Freevee’s content isn’t actually going anywhere. Investors are likely to focus on Amazon’s e-commerce and AI plans, which are more likely to drive growth for AMZN stock.
Wall Street remains highly bullish on Amazon. Analysts have a Strong Buy consensus rating on AMZN stock based on 44 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 50% rally in its share price over the past year, the average AMZN price target of $239.35 per share implies 13% upside potential.
