Amazon Gets Revenue Relief

The company also is entering an operating leverage cycle that tends to boost its stock, Devitt wrote. Stifel Nicolaus makes a market in Amazon shares.

Still, Wall Street remains deeply divided at best about the stock. While seven analysts who cover it recommend buying the stock, 10 recommend selling it -- and it's currently trading well above the Street's $36 median price target.

"We remain concerned about the secular and competitive issues that face Amazon and are likely driving higher expenses," Goldman Sachs analyst Anthony Noto wrote in a research note. And given the company's outlook last quarter, Noto said it's unlikely that Amazon's operating margins had bottomed out or would expand significantly over the year. Goldman Sachs makes a market in Amazon shares.

Concerns that operating margins won't expand in 2007 also prompted a downgrade from investment bank Piper Jaffray on Monday.

Stock performance aside, it's been a mixed quarter for Amazon. In March, the company saw the loss of high-profile partner Borders(BGP Quote), which sold books online via Amazon. However, Devitt estimates that Borders made up only 0.5% to 1% of Amazon revenue and says that the split may also enable it to take market share from Borders.

In February, the company locked horns with an animal rights activist group that is attempting to curb the types of media products the company sells.