Their investment spending continues to go up indicating that this is still very much a growth company (which may justify the high P/E ratio). The cash chart looks good as well. Amazon is willing to spend for a few quarters, but the cash is still overall headed in the right direction.
Still, that cratered profit margin is troubling. With that model, they’ll starve the competition to death — but what if Google, a company with much more money, becomes even more of a direct competitor?