Amazon market cap jumps above $100 billion

E-tailer posts strongest revenue growth rate in a decade, sends market cap to a new record

Shares of Amazon jumped 10% to $224, bringing its market valuation to more than $100 billion, a day after the retailer posted quarterly results that reflected the fastest revenue growth in a decade.

On the news, analysts reiterated their ratings. JP Morgan's Doug Anmuth reiterated his $251 price target. Citi's Mark Mahaney reiterated his "buy" rating.

Amazon posted Tuesday its financial results for the second quarter, and the street has been beat.

The massive e-tailer reported revenue of $9.91 billion, a 51 percent year-over-year boost, besting estimates that had pegged the company at $9.37 billion in sales.

Net income did, however, decline eight percent to $191 million, or $0.41 per diluted share, versus $207 million, or $0.45 per diluted share in the second quarter of 2010. Amazon justified the loss in profit with increased spending in investment activity intended to facilitate future growth.

In after hours trading, Amazon’s stock had risen over six percent to over $227 per share. The company’s market cap currently sits at $96.8 billion. (For perspective, that puts its cap at over double eBay’s $44.4 billion and less than half of Google’s $200.6 billion.)

"Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we've seen in over a decade," said Jeff Bezos, founder and CEO of Amazon.com.

"Kindle 3G with Special Offers has quickly become our bestselling Kindle at only $139. Customers love the convenience of a 3G reader -- no hunting for or paying for Wi-Fi hotspots. Amazon picks up the tab for the 3G wireless, so you have no monthly payments or annual contracts."

Looking forward, Amazon forecasts sales in the third quarter between $10.3 billion and $11.1 billion, a 36 to 47 percent increase from the year before. The company projects an operating income between $20 million and $170 million, a 93 to 37 percent decline from Q3 2010.