Tech Hopes Flow Through Amazon - TheStreet

Big things are expected from

Amazon

(AMZN) - Get Report

when the online retail giant

reports

its second-quarter results after the market closes Thursday as investors eye healthy numbers.

With the tech sector finally showing

signs

of

stability

, Wall Street is expecting Amazon to show decent growth.

Analysts surveyed by Thomson Financial expect Amazon to post revenue of $4.69 billion, a 16% hike on the same period last year, reflecting growing confidence in online spending. Like many parts of the economy, online retail has felt the

effects

of the economic slowdown, although there have been indications that this may be improving.

Amazon rival

eBay

(EBAY) - Get Report

, for example, beat analysts' estimates in its

second-quarter

results Wednesday, and other Internet stocks have also done well.

Yahoo!

(YHOO)

posted

solid

second-quarter numbers Tuesday and outlined its plans to

challenge

Google

(GOOG) - Get Report

.

Seattle, Wash.-based Amazon, which recently opened an online outdoor recreation store and a Web site offering cell phones and service plans, has kept busy during the downturn.

"Amazon has been adding product sub-categories at a steady clip and recent traffic data to the site points to continued strength in visitation, both of which bode well for revenue growth," wrote Youssef Squali, an analyst at Jefferies & Company, in a recent note.

Earlier this week Amazon also announced plans to

buy

online shoe retailer

Zappos

for about $807 million in stock, paying an additional $40 million in cash and stock to Zappos employees. A

rumor

has also been circulating recently that Amazon may buy

Netflix

(NFLX) - Get Report

, which would significantly expand the firm's online empire.

Amazon is synonymous with the e-commerce boom of recent years, and is still seen as America's online retail

king

, blazing a trail for the likes of eBay.

Amazon has been carefully guided through the recession by CEO Jeff Bezos, posting strong first-quarter results earlier this year, and targeting new areas.

Investors will be monitoring Amazon's results for an update on its Kindle

e-book

technology. Amazon unveiled the latest version of the technology, the Kindle DX, earlier this year, and recently slashed prices on its older Kindle 2.

Amazon has not yet revealed how many

Kindles

have been sold since the technology was introduced in 2007, although Jefferies & Company's Squali thinks that the product will contribute about $60 million to second-quarter revenue. Specifically, the firm's Media business should see $36 million from e-Book sales, he added.

Amazon, however, is not the only company playing in this space, and faces stiff competition from Sony and even

Barnes & Noble

(BKS) - Get Report

, which recently

launched

a new e-bookstore.

Despite analysts' bullishness about Amazon's revenue, Wall Street is less positive about the company's profit. Amazon is expected to post earnings of 32 cents a share, down from 37 cents a share in the year-ago quarter.