NBC Deal and Expectations For New Kindle Push Amazon Stock to All-time High

News that Amazon has broadened its partnership with NBC, giving it access to more media content and reports of a big upcoming press conference in Southern California pushed the company’s stock price Friday to an all time high.

The deal with NBC should allow Amazon to beef up its media offerings over the Kindle. Invitations were also sent out for a media announcement to be held in two weeks where Amazon is expected to rollout a new lineup of Kindle ebooks and tablets.

AMZN PE Ratio data by YCharts

But if you look at the graph above you can see that the company’s valuation has grown faster than its revenue for the first time since 2008. Is it justified? Certainly Amazon is building an infrastructure to sell all things whether physical or digital, small or large. But with costs also climbing and net income depressed, it is now trading at an astonishing 302 times earnings. To justify that valuation, Amazon will have to execute everything perfectly. As it gets into more and more new businesses from tablets to fashion, from web services to machinery, pulling off perfection is going to be tougher and tougher.