Shares of Amazon.com rose Tuesday after the online book and music retailer said it opened a video store and a holiday gift store including personal electronics, games, gadgets, and toys.
BT Alex. Brown repeated its "strong buy" rating for the company and analysts said they believe the company's new online video store "will be well regarded by consumers and investors alike."Shares of Amazon.com gained 5 5/16 to 131 9/16 on Tuesday morning.
The video store offers more than 60,000 theatrical and general-interest videos and more than 2,000 DVDs, accompanied by Amazon.com's search features and editorial content.
Prices are up to 30 percent off regular retail consumer costs, the company said in a press release.
"Together, these stores are exactly what our customers have told us they want," Jeff Bezos, founder and CEO of Amazon.com, said in a press release. "Don't fight the mob at the mall - go online. It's the easiest way to get gifts."
Bezos said Amazon.com customers complained of lack of selection, the absence of helpful information and high prices at video stores.
"It's worse than a bad movie," he said. "So we created a video store that has nearly seven times the selection of a typical video store, is rich in content, and is easy on the wallet."
Written By Steve Gelsi