The online bookseller reported that sales increased 1,168% vs. the same period last year. Revenue was $27.9 million, compared with $2.23 million during the same quarter last year. Losses for the quarter came to $6.7 million, compared to last year's $767,000. The per-share loss for this quarter was 28 cents per share; analysts had predicted a loss of about 32 cents per share.

But the earnings report isn't likely to cause any fundamental shift in investor strategies for the stock, one analyst said. "People bought Amazon on kind of a hope and prayer, and there was nothing in this latest release to make people feel that it was a bad hope and a prayer -- but it's still a hope and a prayer," said Bill Bass, an analyst at Forrester Research, Inc.

However, the online firm's long-term fate could be another story. Amazon will face a battle from Barnes & Noble, Inc., which recently launched its own Web site and is in a strong position to get volume discounts from suppliers. But Amazon also showed this week "just how much better" it understands the Web, Bass said, pointing to marketing deals Amazon inked with America Online, Inc. and Excite, Inc. (see story).

"There is nothing to lead you to think that all of a sudden, Amazon is going to turn into Apple Computer right now. But long-term, Amazon could turn into Apple Computer. Barnes & Noble won't, but Amazon might," Bass added.

Amazon.com's current stock price.