I suppose its both, if you're a customer that's some how invested in AMZN. It still blows my mind that Apple can make in one quarter more profit than Amazon has made in its entire existence.
Give it a decade or so.
They are slowly killing their competition*
While I agree that Amazon has a crazy valuation, the reality is they are in the process of building a "legal monopoly" the likes of which we may have never seen before.
Once Amazon has built enough infrastructure and made enough deals (all while running on savagely thin margins) they will have legally suffocated* a good portion of the market. Once that happens they can get down the business of making money.
Lots. Of. Money.
With no effective competition and the cost of trying to compete coming with an astronomical** start up price to even take a (statistically dangerous) stab at it, Amazon will be able to charge what they or their shareholders want.
Not saying this will end up happening, but that's the long game - and the one which Wall St is very, highly interested in.
Karl P
* If not by shutting them down outright, then by using market pressure to force them to succumb to use amazon for payment processing, distribution or even their IT infrastructure.
** Billions upon Billions upon Billions