While investors oftentimes lament Amazon's spending plans, Devitt sees international e-commerce efforts as paying off over the long term, as consumer retail markets open up on the Web. "Amazon.com's China investments have weighed heavily on international profitability," concedes Devitt, who nevertheless argues, " with reward comes risk."

Overall, Morgan Stanley forecasts that e-commerce sales will grow to $1 trillion by 2016, with Amazon increasing its global market share to 23.5% from a previous estimate of 20.6%.

In other technology news, Lazard Capital markets upgraded Intel ( INTC) shares to 'Buy' citing a bottoming of the chip-maker's gross margin, ultrabook sales and its attractive dividend yield. All eyes in technology will be on the Consumer Electronics Show, which is about to get underway in Las Vegas,

TheStreet is live-blogging CES:

-- Written by Antoine Gara in New York

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