With earnings out in less then 2 weeks and with the insider purchase in the $9 range this quarter earnings could easily beat estimates, especially with the low guidance given.
If I were short, I wouldn't want to be in my position if earnings beat thus I would close my position heading into earnings. Other than Amazon getting into the tablet space, the shorts really are speculating until the 4th quarter numbers are released.
Although, the past quarter earnings missed they still beat the estimates. Remember the 2013 3rd and 4th quarters had extraordinary gains, so earning for this qtr won't meet last years however the forward guidance should be positive. That's if Amazon hasn't taken market share away.
So I added some long shares and if earnings and guidance are good, I'll add more. Especially into an after hours & pre-open drop.