Amzn realizes 90% of their revenues from their retail sales. The best they have ever done is 2.5% to 3.5% margins. So given their 2012 revenues at $14 billion with a generous margin of 4% results in eps of $1.24. Then say a low earth orbit p/e of 100 as opposed to their astronomical 3700, you get a share price of $124. Thats more than reasonable and far less than half their share price now. Lets face it, amzn is really worth no more than $50-$100 a share, if that much. There is a big correction coming in the future.
"There is a big correction coming in the future." Unfortuneately, that is not actionable. I suppose you could short, and wait long enough. Almost all companies go broke eventually. I hope you're right about the big correction, I'd like to buy more.