"He doesn't seem to know what he is talking about."

HN has this sort of innate skepticism that is just adorable. I assure you Matt Yglesias knows what he is talking about.

"There are P/E ratios between "massively overvalued" and "massively undervalued" and there is no rule that you have to jump from one territory into the next"

He's making a general point about share price and profit not saying that unless you have giant profits you will be bought out. Low profits are normally punished by wall street, Amazon is an anomaly.

"Who has the generous shareholders now?"

Probably the company with a 3600 P/E ratio.