How do you get to a 100B valuation? They are set to earn just over 2B this year. So you're willing to pay 50x earnings? Remember, this is IT, where margins sho

How do you get to a 100B valuation? They are set to earn just over 2B this year. So you're willing to pay 50x earnings? Remember, this is IT, where margins should be some of the highest of any industry. Compared to software or traditional hardware companies, a 23% margin isn't very good. I actually buy into the idea that they are reinvesting in expansion which is hurting their profits, but I think it remains to be seen how profitable cloud computing actually is in the long run. It carries enormous expenses in hardware and maintenance and is becoming more competitive every day. Will AWS grow? No doubt. But by how much and at what profit level remains to be seen. If AWS was spun out as its own stock symbol separate from the ecommerce side of the house, I might even be willing to take a flier if I really felt like gambling, but at an overall valuation of $430B, it's just too expensive for me.