While a lot of people associate this company with info tech, Amazon shares more characteristics with companies like Costco and Walmart. These types of firms are focused on effective use of cash-flows in order to expand.
The PEs of superstores do not reflect the fact that they use much more debt than pure-tech firms. This debt contributes to cash-flows, which contributes to expanding operations. While Amazon may not be able to add new big-box stores with this cash, it can add more ads. Take a look at Amazon's return on equity (of which LT debt is a component) and you will see a brighter picture than depicted in this article.
PE is just one measure, and it is easily distorted in the short-run. Look at the business as it relates to the market price, and then compare it to other like businesses.
Looking at the financials for the past few years, Amazon is paying down its LT debt. This somewhat decreases the validity of my middle point.
Perhaps the PE is high because their profit margin is expected to increase above what is normally associated with retail operations (razor-thin). After all, Amazon is delving into more tech-centric lines of business.
The PEs of superstores do not reflect the fact that they use much more debt than pure-tech firms. This debt contributes to cash-flows, which contributes to expanding operations. While Amazon may not be able to add new big-box stores with this cash, it can add more ads. Take a look at Amazon's return on equity (of which LT debt is a component) and you will see a brighter picture than depicted in this article.
PE is just one measure, and it is easily distorted in the short-run. Look at the business as it relates to the market price, and then compare it to other like businesses.