Amazon Stock Surges on Strong First Quarter Results

Internet retailer Amazon beat analysts’ estimates for its first quarter on Thursday, prompting a 15% surge in its stock price in after-hours trading.

Net income for the quarter dropped 35% to $130 million, or $0.28 per share, compared with its 2011 figures of $201 million, or $0.44 per share.

Revenue, however, reached $13.18 billion, besting Amazon’s guidance of between $11.9 billion to $13.3 billion for the quarter, and analysts’ consensus estimate of $12.8 billion. Amazon’s first-quarter revenue last year was $9.86 billion.

Amazon touted strong Kindle sales in Thursday’s earnings announcement. The Kindle Fire is Amazon’s “bestselling, most gifted and most wished for product across the millions of items available on Amazon.com since launch,” according to the company.

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“In the first quarter, nine out of 10 of the top sellers on Amazon.com were digital products — Kindle, Kindle books, movies, music and apps,” Amazon reports.

Most recently, Amazon made a software update to the Kindle Fire, making its ebooks experience more social.

BONUS: Amazon Kindle Fire, iPad’s First True Competitor [REVIEW]

“The $199 Amazon Kindle Fire is a worthy device. It’s not an iPad slayer, but it could be the first tablet to ably stand atop Mount Tabulous (or at least on a rock ledge just a few dozen feet lower) with Apple’s industry-dominating slab computer.” Read the full review here.