Piper Jaffray Comments on Amazon.com's Kindle Press Release

Piper Jaffray has published a research report on Amazon.com

stating that the firm remains buyers of the company following a press release today announcing over 1 million sales of Kindle devices per week for the last three weeks. In the report, Piper Jaffray writes, "Our Kindle estimate calls for 4 million Fires and 5 million traditional Kindle units. We believe that today's press release likely indicates sales of roughly 10-12 million units in the December quarter. This would imply sales of 769k to 923k total Kindle units per week. We believe sales in the month of October benefited from the $79 Kindle version that began shipping on September 28th. Separately, the month of November through today has benefited from Kindle Fire and both Kindle Touch's, which began to ship on November 15. In other words, we believe weekly unit sales lagged one million per week early in the quarter, and have accelerated to over one million per week today, with an average of 769k-923k per week." Piper Jaffray maintains its Overweight rating and $256 price target on Amazon.com, which is currently trading up $2.57 from yesterday's $185.21 closing price.