Alex Salkever's  Instablog

As everyone knows, the Amazon Kindle 3 is coming and lots of folks are hopped up about the new toy from eCommerce giant Amazon (AMZN). Surprisingly, Piqqem.com users are voicing slightly bearish sentiment trends on Amazon even as the company ramps into launch of its much anticipated 9.7 inch screen Kindle on Wednesday of this week. On a scale of 0-to-4 (with four as highest), Piqqem Sentiment for Amazon has declined moderately by six basis points over the past month, from 2.54 at its most recent high point in mid-April to 2.49 as of market close on May 4. While this means Piqqem users still view Amazon shares in a largely bullish light (above the neutral mid-point on the scale of 2), any negative trend in the sentiment line is a negative for the stock.

Amazon's decidedly cautious forward looking earnings projections likely have exerted downward pressure on the stock, as the company forecast a steep decline in operating margins in the upcoming year. The Piqqem Sentiment number movement implies the market is not yet a believer in the ability of Kindle to provide a meaningful revenue boost to Amazon's top and bottom lines in the near term. This despite the fact that the Kindle is even outpacing the iPod in terms of device sales during its first year. It's possible the market has already priced Kindle earnings into Amazon shares but how many Kindle's Amazon will actually sell could represent a significant upside surprise not so much with immediate bottom line implications as much as future profitability implications for Amazon.