NEW YORK (TheStreet) -- Shares of Amazon.com (AMZN) are soaring, up 12.9% to $325 in pre-market trading Friday, after the online retailer surpassed analysts' profit estimates in its fourth-quarter earnings report late yesterday.
The company reported earnings of 45 cents per share for the fourth quarter, topping the consensus estimate of 18 cents per share. The company said a rise in Amazon Prime memberships fueled the jump in profit.
For the fourth quarter, the online retailer posted revenue of $29.33 billion, compared to analysts' estimates of $29.65 billion.
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However, Amazon now expects revenue in a range of $20.9 billion and $22.9 billion for the first quarter of 2015, lower than analysts' estimates of $23.05 billion for the period.
Seattle-based Amazon sells a range of products and services through its various owned and affiliated websites, as well as manufactures electronic devices.
"We rate AMAZON.COM INC (AMZN) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself, poor profit margins and feeble growth in its earnings per share."