Disproving reports that its growth days are behind it, Amazon.com Inc. (NASDAQ: AMZN) today reported quarterly results that far exceeded Wall Street estimates.

Net income at the No.1 e-tailer more than doubled to $158 million, or 37 cents a share, up from $78 million or 19 cents per share. Revenue jumped 41% to $4.06 billion. The New York Times noted that analysts had expected a 26 cent profit on sales of $3.96 billion. The results, though, were not good enough for Wall Street, and investors sent Amazon's shares tumbling in after-hours trading.

One reason for the thumbs down may be that the company's gross margins -- always a concern with investors -- contracted slightly. The company also maintained its revenue forecast for the current period. Maybe investors were expecting the company to boost earnings guidance as it benefits from shoppers bypassing malls and spending on gasoline in favor of shopping at home.

Skeptics, including me, have underestimated the company. Soleil Securities analyst Scott Tilghman told Bloomberg News that "There's a misperception out there that e-commerce is much more mature than it actually is. They (Amazon) offer one-stop shopping and often better prices than bricks-and-mortar stores, which should offset any slowdown in consumer spending."

Looks like he may have a point.

[July 24 UPDATE: Amazon shares soar after Chief Executive Jeff Bezos' bullish comments. The shares were little changed at first until Bezos said on the earnings conference call that the company was benefiting from consumers avoiding driving to brick-and-mortar stores because of concerns about high gas prices. Shares are up over 15% by early afternoon Thursday.]

The marketing and release of digital-only albums before a physical copy is available received another significant boost this week when the instrumental Nine Inch Nails album Ghosts I-IV brought in $1.6 million in revenue in its first week. Billboard reported the news, and indicated that the revenue comes from around 800,000 transactions, which includes free and paid downloads and pre-orders for the physical album to be released next month.

Unfortunately, sales figure to compare to "traditional" releases will not be made available to the band; similar in style to the road Radiohead took last fall when the band pioneered this style of release with seventh album In Rainbows.

Nine Inch Nails had eschewed the record label method of releasing albums after numerous problems arose with the band's previous album Year Zero last year. Much of the strife between band leader Trent Reznor and label Interscope Records, a part of the Universal Music Group, revolved around exorbitant prices for the album in international markets. Reznor deplored the pricing in places like Australia and China where fans were expected to pay the equivalent of $30 for the CD, which sold in the United States for around a third of that price.

The new album was released via the Nine Inch Nails website and utilized the same methods Radiohead had used back in October, albeit with higher bit-rate files. Now that two prominent bands have chosen this route to distribute their new music, perhaps this trend will catch on. Additionally, since it has been released, the album has also been added to Amazon.com, Inc. (NASDAQ: AMZN)'s MP3 Store.

This Forbes article speaks of a rather interesting proposition for local businesses that may have seen their customers shift ever-so-slightly into shopping over the web. How can they compete like it's 1999? First of all, don't buy the Prince song on iTunes. Second, follow Google Local to your heart's content.

Instead of trying to replace local merchants with Google Base, Google has been trying to create partnerships with merchants anywhere and everywhere. Reason: the lucrative advertising revenue that comes from matching buyer and seller. It's eBay for the advertising age, to coin a phrase.

I've said it once too often, but it appears from this angle that Google's intention is to become the biggest source of advertising on the planet. Its move beyond the traditional Internet into broadcast radio with the DMarc acquisition and municipal WiFi service with the Earthlink partnership, will allow its incredibly ad-targeting platform to shine.

After all, the more Google helps global and local merchants match what they offer insofar as products and services, the more lucrative ad revenue it gleans from each looked-at item and each completed transaction. By siphoning a little bit off each transaction -- and by helping business partners to convert shoppers into buyers -- all the worlds' billion-dollar economies stand to pound hard cash straight into Google's coffers, and perhaps into your portfolio if you hold GOOG.

Maybe the Google folks are having a precognition of future strategy by already having a product called Google Earth.