There are so much Bernanke's printed money circulated around. Even junks like Groupon is up substantially. At least Amazon is making money and will be there in foreseeable future. Many stocks that have been up 200% this year will not be there when this Bernanke bubble bursts.
I was on this this board for few days and was baffled about that--there were no gross revenue for product sales. The only way that makes sense would be some kind of benefits toward service revenue, but I don't see that at all. This was going on from 2011 and forward. That's why you see declined in net income and entering in negative territory. There are room for improvements on financials. For starter, increase the margin of product sales. For example, for 2012 margin on product sales was about 13% if Amazon increased it to 30% (which I think is reasonable) and still have a reasonable market price for consumers, Amazon could improve operating income by about $8 and bottom line by $6B (after estimated 25% tax). Service revenue was enough to cover all expenses on P&L, except for COGS (including fulfillment). Earning per share would be $13 ($6B/456.9M outstanding shares) and P/E ratio would be about 23.5. Amazon can try to find alternative ways to reduce COGS and can still improve pricing (but the product margin need to be at a healthy level). I hope they price it right on new products to avoid above problem and improve bottom line signfiicantly.
I was also baffle about this board. You would thought posters would be talking about product rumors and potential upcoming products and etc. There are rumors floating out there about set-top box, android console, smartphone (regular, 3D, and Kindle). The facts that Lab126 is expanding and recently leased more than 500,000 sq. ft. of space in Moffett Tower. Amazon recently filed trademark application for name "Firetube", possibly for a set-top box.