Amazon Wins Big With Kindle, Shares Spike

Updated with recent stock prices

SEATTLE (TheStreet) -- Amazon.com(AMZN) keeps on winning with Kindle.

The online retailer posted a 69% surge in third-quarter profit on Thursday, sending shares soaring 23% in recent trading to $116.40 on the news.

During the quarter, the company earned $199 million, or 45 cents a share, compared with $118 million, or 27 cents, in the year-ago period. Analysts expected earnings of 33 cents a share.

Sales spiked 28% to $5.45 billion from $4.26 billion last year.

"Kindle has become the No.1 bestselling item by both unit sales and dollars -- not just in our electronics store but across all product categories on Amazon.com," CEO and founder Jeff Bezos said in a statement. "It's also the most wished for and the most gifted."

Several analysts upgraded Amazon on the news. FBR upgraded Amazon to outperform with a $130 price target, while Jefferies analyst Youssef Squali upgraded the shares to buy from hold and raised his price target to $120 from $88.

Janney analyst Shawn Milne also upgraded Amazon to buy from neutral, saying he sees Amazon continuing to gain market share despite tough competition from online sites such as eBay.

Unlike rival eBay(EBAY), which released a fourth-quarter outlook on the low-end of analysts expectations, Amazon said it is poised to have a very Merry Christmas indeed.

The company foresees operating income between $300 million and $425 million, or to grow between 10% and 56% compared with the fourth quarter of 2008.

And revenue could fall between $8.12 billion and $9.12 billion, possibly better than the $8.13 billion analysts forecast.

-- Reported by Jeanine Poggi in New York

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