Updated from Thursday, Jan. 28

SEATTLE (

TheStreet

) --

Amazon

(AMZN) - Get Report

is being praised by analysts, who are upping their target price on the stock after the e-retailer easily topped Wall Street's fourth-quarter estimates and released a positive outlook.

The news sent shares up 3.4% to $130.24 before the bell on Friday.

Needham upped its target to $140 from $120. "The Amazon story would appear to have no bounds," analyst Charles Wolf wrote in a note. "Through a combination of price leadership, superb service and continuing expansion of product offerings, Amazon is gaining share in the online e-commerce market even as the e-commerce market gains share from the physical commerce market."

Jeffries also raised its price target to $160 from $150 and Kaufman Bros. lifted its target to $160 from $155.

Looking ahead, Amazon predicts revenue in the range of $6.45 billion to $7 billion, better than the $6.36 billion analysts are looking for. Operating income is expected to fall between $275 million and $365 million.

During the quarter, the company earned $384 million, or 85 cents a share, a 71% surge compared with $225 million, or 52 cents, in the year-ago period. Analysts expected earnings of 72 cents a share.

Sales soared 42% to $9.51 billion from $6.7 billion last year. This was significantly higher than the $9.04 billion forecast.

Amazon did not reveal how many Kindles it has sold.

Investors fear

Apple's

(AAPL) - Get Report

new

iPad

will steal market share away from Amazon's Kindle.

The

Apple iPad

wouldn't be the first time Amazon has faced increasing competition for its Kindle. Companies like

Barnes & Noble

(BKS) - Get Report

and

Sony

(SNE) - Get Report

launched similar, or beefed up devices, over the holidays.

Amazon fought back by launching an international version of its Kindle. It also cut $40 off the price of the device.

Amazon also said it will buy back up to $2 billion in common stock.

-- Reported by Jeanine Poggi in New York.

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