Despite its surging stock price, things at Amazon haven't been especially rosy lately. During the first three months of the year, Amazon's profits have dropped by 37%.
Amazon has articulated plans of giving up short-term profits and investing in long-term growth. It has been building new warehouses and pouring money into research and development for future product lines.
Wall Street is buying Jeff Bezos's strategy and giving Amazon a temporary pass on profits, for now.