Amazon announced its first quarter earnings, which beat profit estimates thanks to strong Kindle Fire sales.

First the bad news: Amazon's profits are down overall at $130 million (£80 million) net income compared to last year's Q1 net income of $201 million (£123 million).

Amazon attributes the drop to the company's various investments, such as fulfillment centers, web services infrastructure and video content rights.

Here's the good news: that the $130 million (£80 million), which translates to 28 cents per share, beats the online giant's first quarter estimate of reaching 6 cents per share.

Meanwhile, revenue grew 34 percent to $13.18 billion (£8.5 billion) beating expectations set for $12.91 billion (£7.94 billion).

Kindle Fire Amazon's best selling e-reader

The Kindle Fire was the star of Amazon's first quarter, taking the top spot as Amazon's best-selling item.

As a result, Amazon saw a 17 percent increase in media sales that are mostly attributed to customers filling their new Kindle Fire with digital movies and books.

Looking ahead, Amazon is estimating revenue in its second quarter to grow between 20 to 34 percent, or between $11.9 billion to $13.3 billion (£7.3 billion to £ 8.1 billion).