Jefferies Discusses Amazon App Store (AMZN)

Jefferies & Co. has a Buy rating and a $205 price target on shares of Amazon.com AMZN. In a note to investors, Jefferies writes, "Amazon launched an app store Android this week and was promoting it by offering Angry Birds Rio for free to customers. Amazon's Appstore will offer a paid app for free every day as well. Amazon's app marketplace is expected to be more controlled, in that Amazon is expected to spend about a week vetting each app before it's approved for the app store. According to earlier media reports, Amazon will take a 30% cut on app sales. We think that not only this offering could provide a high quality alternative to Google's own app store, but AMZN may leverage it to launch its own Android powered tablet device in the future." Shares of AMZN are up 66 cents in pre-market trading to $171.76, a gain of 0.4%.