Amazon: Risk and reward

Amazon is among some of the big technology companies reporting quarterly earnings after the closing bell Thursday,

The leading online retailer, Amazon generated nearly $90 billion in revenue and almost $.9.5 billion in OIBDA/EBITDA cash flow in 2014.

18 Wall Street analysts have a buy rating on the stock. 14 have a hold and none have a sell rating,

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Aram Rubinson,with Wolfe Research, maintains an outperform with a $450 price target. He told CNBC's "Power Lunch" Thursday why he remains bullish on the company.

"Amazon is a great company with a worldwide brand that has essentially defined ecommerce. Fanatical customer service rarely coincides with low prices. Amazon does both."

Among the key items Rubinson is looking for in today's report is new data about Amazon's ad revenue, a major revenue stream for internet companies.

"Amazon currently has 273 million active customer worldwide." Rubinson said. "This figure should eclipse 300 million by the time 2016 rolls around. If it were able to match Facebook and generate eight million in ad revenue per user this would equate to $2.5 billion of ad revenue potential, the vast majority of which could be converted into profit."

Daniel Kurnos with Benchmarck. has a buy rating on Amazon with a $425 price target. He is maintaining 2015 revenue estimate of $102.9 billion, up 15.5 percent, year-over-year

"While Amazon's revenue growth rate may moderate somewhat given the challenging economic environment and difficult comparisons. We think it may see meaningful OIBDA margin expansion over the next few years despite ongoing investment to support strong unit volume growth."

The only red flag Kurnos sees on the horizon is if the U.S. employment situation remains depressed and wage growth is stagnant.

"If the economic recovery falters, Amazon's growth rate could decelerate." Kurnos said. "However, we still expect profitability will continue to improve year-over-year, regardless, helping justify the lofty valuation and helping assuage investor fears regarding long-term profitability."

An Amazon.com Inc. employee lifts a box from a conveyor at the company's fulfillment center in Tracy, California.
David Paul Morris | Bloomberg | Getty Images
An Amazon.com Inc. employee lifts a box from a conveyor at the company's fulfillment center in Tracy, California.