Bullish Amazon Numbers Not Adding Up

Investors hotfooted it into Amazon.com (AMZN Quote) stock after the company surprised Wall Street with a strong earnings forecast Monday. But analysts who cover the stock are waiting for the other shoe to drop.

Amazon shares rocketed 32% Monday on news that strong sales of consumer electronics goods would lead to a narrower-than-expected first-quarter loss on stronger-than-forecast sales. But at least two analysts who cover the Seattle-based online retailer noted that margins on electronics goods tend to be lower than those on other goods Amazon sells -- so even a strong rise in electronics sales wouldn't tend to sharply reduce losses.

What, then, is responsible for Amazon's sudden rise in gross margins? The press release didn't specify, and the company didn't immediately return a call seeking comment. But given Amazon's tendency to push its spin on things, these analysts say they'll remain skeptical until they get more information.

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