We think it speaks volumes about Amazon's still-improving ability to attract customers, serve them better and sell them more, to gain share, and reinforces our view that Amazon can continue to gain share.

- Ed Weller, Analyst, ThinkEquity

Amazon (AMZN) reported a truly great quarter after the close last night.  In a time when many companies are beating estimates on cost cuts and lower revenue, Amazon's revenue grew 28% compared to the year ago quarter. 

That was a driven bya 44% increase in their Electronics And General Merchandise segment.  This segment now actually makes up more than 40% of Amazon's revenues meaning that Amazon is no longer just book, DVD, CD seller.  They are truly becoming a broad general merchandiser, "the Walmart of the internet". 

The valuation is definitely too hot to handle here at around 50 times analyst estimates for 2010 after backing out the net cash and short term investments on their balance sheet.  But, along with Apple, this is one of the truly phenomenal businesses in the world right now, providing tremendous value, innovative products, great customer service, the IT factor, and steam rolling competitors.

Much of this is due to Amazon Founder & CEO, Jeff Bezos, who is an exceptional human being.  He is still very much at the helm and engaged in the business, including owning 94 million of Amazon's 433 million outstanding shares (22%).  So management is definitely aligned with shareholders here.

Disclosure: Top Gun has no position in Amazon (AMZN) shares.