Amazon Bucks Trend, Beats Expectations

: Image via CrunchBase

There is a lone bright star shining in the black hole that is now the U.S. economy. That star's name is - Amazon.

Amazon Inc. announced 4th quarter earnings and sales today that actually beat, yes beat, Wall Street expectations - despite a difficult environment for retail sales.

Today's announcement sent Amazon shares up 9 percent in after-hours trading.

The Seattle-based Amazon reported net income of $225 million for the 3rd quarter of 2008. That represents an increase of 9 percent from earnings of $207 million 12 months ago.

Amazon added that their sales would have grown by 24 percent, had it not been for an unfavorable currency exchange rate.

Many analysts have started to worry that the recession's impact on consumer spending is beginning to take its toll on e-commerce. Just last week, eBay posted lower fourth-quarter sales and offered a weaker-than-expected outlook for the first quarter.

The difference is clear, eBay totally trashed their affiliate program several months ago when they took it in-house. Amazon's affiliate program is now far superior. Perhaps affiliate marketing is the only way to save our troubled economy.