LogMeln Drops After Amazon Launches Collaboration Tool
Shares of LogMeln (LOGM) are trading lower this morning after Amazon's Web Services division announced the launch of "Amazon Chime," a new unified communications service.
CHIME: Amazon Chime "makes meetings easier and more efficient than ever before," as customers can start high-quality video and audio meetings with one-click, AWS stated in its announcement of the service. The service provides a "seamless, synchronized experience" across desktops, iOS, and Android devices, Amazon added.
EASE OF USE, SERVICE SEEN AS KEYS: In a note to investors commenting on the implications of Amazon's new "freemium" service, JPMorgan analyst Sterling Auty said that "at first glance" Chime seems to offer a number of the features found in LogMeIn's Join.Me and other collaboration tools. However, what needs to be seen is the ease of use and customer service offered, noting that he had "issues with the email verification to establish an account and there is not a clear customer support option" when he tried Chime out. Auty added that Chime's pricing "looks comparable to a number of the solutions" on the market. The analyst has an Overweight rating on LogMeIn shares.
PRICE ACTION: In late morning trading, LogMeIn shares have dropped nearly 7% to $96.25.
Disclosure: None.