Meanwhile, the company announced a new investment Tuesday; a video competitor to YouTube, called "Amazon Video Direct." Amazon account holders can now upload original video and share in the revenue, adding to competition with Google's YouTube.
Victor Anthony, managing director and media analyst at Axiom Capital, said Tuesday's announcement should help fortify Amazon Prime membership and increase its value for customers.
"They're capitalizing on what I think is a move of media consumption," Anthony told CNBC's "Power Lunch." "I think that's contributing to the upside that you're seeing, it's a positive for the stock."
Bernstein's updated 2017 earnings forecast of $22.48 billion is 14 percent ahead of consensus. Its revenue estimates for 2016 are 2.7 percent ahead of consensus, and 4.9 percent ahead of consensus for 2017. Gross margin estimates are also above the rest of the Street by 154 basis points for the second quarter of 2016.
Amazon, the note said, shows little deceleration in the retail business as it continues to benefit from Prime. Foreign exchange is another tailwind underrated by Wall Street, according to the note.
Shares of Amazon are up 4 percent this year, and more than 60 percent year-over-year.