AMZN Down 11% in After-Market, Buy on Weakness?

Shares of Amazon.com plummeted in after-hours trading Thursday following the online retailer posted earnings that missed analyst expectations and revenues that barely beat forecasts. But despite it all, analyst Tim Boyd of MKM Partners calls it a buy.

The margins came under pressure, he says, but was it a result of productivity or pricing losses? Boyd thinks the Seattle-based company is simply investing in future growth. He says it's top-line growth is strong and there is nothing structurally wrong with this company. Following the sell-off, he thinks it will trade 25 times earnings.

Earlier this week, the company issued a press release that said sales of electronic books for its Kindle device top that of the hardcover versions. Guy Adami of Drakon Capital thought the release was sent to soften any weakness the company would later report through earnings and Boyd agrees. He thinks the company deserves to be criticized for being selectively transparent.

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Trader disclosure: On July 22, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (F), (MSFT) (NOK); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman owns (AAPL); Finerman owns (C); Finerman owns (JPM); Finerman’s Firm owns (JPM); Finerman’s Firm owns (MCD); Finerman’s Firm owns (RIMM); Finerman’s Firm is short (IJR); Finerman’s Firm is short (MDY); Finerman’s Firm is short (SPY); Kelly owns (BP) puts; Kelly is short (GS); Pete Najarian owns (C) Calls; Pete Najarian owns (CNI); Pete Najarian owns (DD) Calls; Pete Najarian owns (MU) Call spread; Pete Najarian owns (RSH), short calls; Pete Najarian owns (SSCO); Pete Najarian owns (TCK); Pete Najarian owns (VLO)

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