the premise is that AMZN's investments in distributions centers closer to urban area, cloud, digital books, will start to bring enough scale that the previous couple years' of slowdown in earnings will start to hit the bottom line from being almost 0. So at 156, for example, they are forecasted to have eps of about 1.73 a share for the upcoming year. I wouldn't get caught up on AMZN's PE analysis. The stock is so far past any analsis there that it's not relevant anymore until it is. AMZN's trades on it's platform hype with constant media intros supported, and being a low float scam favorite for Wallstreet. Certainly not a mom and pop stock. There was a big short premise that earnings would decline the last 2 years such as Paulo Santos over at Alpha. He was right about the slowdown but wrong that the stock would react to it. Just an example that shorting high PE's is dangerous WS wants to keep supporting them. good luck.