"The forward PE is way too rich...compare this to MSFT, csco and AAPL and intc...its triple their o8 forward PE's."
For one thing, Amazon is growing (ttm) at a rate of 32%. Those other companies are growing more slowly.
Through last quarter (ttm) free cash flow stood at $700M and was growing at 90%. At that rate, Amazon would be trading at only 25x 2Q08 FCF. Or if we apply the 32% revenue growth to that $700M the multiple would be 30.
Those multiples aren't that different than those of the stocks you mentioned and in some cases are lower. Perhaps you are not looking at the same metrics that the rest of the market is valuing the company at.