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Amazon.com (Nasdaq: AMZN) was up 1 3/8 at 26 early Monday after Goldman Sachs repeated a trading buy recommendation on the stock.
"With three important weeks remaining, Amazon appears on track for a strong Q4," wrote Goldman analyst Anthony Noto. Sales of products other than books, music and videos are strong, and are likely to make up a "significantly greater" portion of sales in the fourth quarter than the 21 percent contribution they made in the third quarter, Noto said.
The size of the average order is also growing, and will likely total more than US$50 in the fourth quarter, according to Noto.
Amazon's strong position in the e-commerce market should also benefit the
company as overall e-tail sales 
rise during the holiday season, Noto said.
"Online sales do not appear to be impacted by slower consumer spending, as
online sales are likely driven by consumers shifting some of their spending"
from traditional stores, and as first-time e-shoppers enter the ranks, he
wrote.
Amazon is doing well even as the company cuts back on advertising and marketing spending, said Noto. Free television ad spots and a holiday catalog sent to 10 million people will benefit the company, Noto expects. In addition, Noto wrote, the company's promotional offering of free shipping for each order over $100 will be "effective in driving higher average order sizes and greater cross-category purchases."
Noto said Amazon is likely to see $1.03 billion in revenue for the fourth quarter, due to robust holiday sales.
The analyst believes that Amazon's fourth-quarter results should give the company "increased visibility," which will boost the stock price.
Noto said he expects Amazon shares to reach 45 in a year.
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