What to Expect From Amazon Tomorrow

How big was the Kindle Fire for the Android tablet market? We'll know a little more when Amazon.com (Nasdaq: AMZN  ) reports fourth-quarter earnings after the bell tomorrow. Here's a closer look at what analysts expect from this Motley Fool Stock Advisor recommendation:

Metric Q4 2011 (est.) Q4 2010 Estimated Growth
Revenue $18.20 billion $12.95 billion 40.6%
Earning Per Share $0.19 $0.91 (79.1%)

Source: Yahoo! Finance and S&P Capital IQ.

Let's hope Wall Street is lowballing. Retailer reports have come up awful recently. Barnes & Noble (NYSE: BKS  ) recently projected bigger than expected losses while Best Buy (NYSE: BBY  ) copped to problems filling orders. Amazon shouldn't do much better if this pattern holds. At the very least, Wall Street is expecting outsized investments to crimp margins and stymie profits.

3 more things to watch
Still, we're about more than numbers here at The Motley Fool. As business-focused investors we're also interested in strategy and company initiatives. Here are three things I'm particularly hoping to hear more about:

  • The Kindle Fire. While the rest of the Android tablet market appears to be suffering, Amazon's Fire seems to have done well competing against the iPad. Did the device get close to Apple's 15.4 million units sold? When will we see a new version of the tablet?
  • The Amazon Instant Video library. Skeptics have long believed the e-tailer would outbid Netflix (Nasdaq: NFLX  ) for premium content in beefing up its digital library. So far, however, it hasn't happened. What is Amazon doing to improve its Instant Video service? Are fears it will undercut Netflix on price justified? If so, when will the changes occur?
  • Web Services. Although they isn't Amazon's core business, Web Services are catching on as more young businesses choose to operate in the cloud rather than own computing infrastructure. How big is this business getting? Will Amazon ever break it out as a distinct segment?

Those are my questions. Now it's your turn to weigh in. What do you expect to hear from Amazon? Let us know by leaving a comment below.

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He owned shares of Apple and Netflix at the time of publication. Check out Tim's web home, portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool owns shares of Amazon.com, Best Buy, and Apple. Motley Fool newsletter services have recommended buying shares of Apple, Netflix, and Amazon.com. Motley Fool newsletter services have recommended writing covered calls in Best Buy. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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