While Amazon’s (NASDAQ:AMZN) dangerously low margins are a source of concern in the upcoming full year 2011 results, a recent statistic released by RBC Capital Markets reaffirms our earlier stance that the media consumption on Kindle Fire would be instrumental in reviving future margins for the company. Amazon competes in the e-commerce and e-content space with companies like eBay (NASDAQ:EBAY).
The statistic, which projects an expected lifetime operating income of $136 for the Kindle Fire,  could not have come at a better time for Amazon, especially considering that the Kindle Fire is at a very early stage of its launch. Additionally, it should provide comfort to investors who expect margins to stay below the 2% level for Q4 2011 as well.
We currently have a price estimate of $233 for Amazon’s stock, which is currently around 20% above the current market price.Notes: