Amazon (AMZN +5.4%) is now up strongly post-earnings, as worries about top-line weakness and...

|By:, SA News Editor

Amazon (AMZN +5.4%) is now up strongly post-earnings, as worries about top-line weakness and aggressive spending get overshadowed by a rising gross margin. Growing sales of e-books, AWS server/storage capacity, and third-party merchandise (now 40% of unit sales) are contributing to the margin gains. Goldman thinks these trends will lead to Amazon's operating margin bottoming later this year, and reaching 3.7% in 2013. Nomura (previous) also forecasts rising margins. (transcript)