Why Amazon Is Poised to Pull Back
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online retail giant Amazon.com has received a distressing two-star ranking.
With that in mind, let's take a closer look at Amazon and see what CAPS investors are saying about the stock right now.
Amazonfacts
Headquarters (founded) | Seattle, Wash. (1994) |
Market Cap | $128.6 billion |
Industry | Internet retail |
Trailing-12-Month Revenue | $57.3 billion |
Management | Founder/Chairman/CEO Jeff Bezos CFO Thomas Szkutak |
Return on Capital (average, past 3 years) | 11.7% |
Cash/Debt | $5.3 billion / $0 |
Competitors | Apple eBay Wal-Mart |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 21% of the 6,727 members who have rated Amazon believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, 401ktimer1, wrote that the Amazon bear case all boils down to price:
Sky high valuation -- the stock price seems to discount years of earnings growth. Market cap of $125 Billion and forward P/E of >150. Even though the company is great, the current stock price leaves little room for future appreciation.
Of course, this short pitch doesn't even come close to telling the entire story of Amazon. You're in luck, though. The Fool's brand-new premium report on Amazon tells all sides of the story for one of the most powerful technology companies in the world. You can grab your copy now, which comes with free updates for 12 months, by just clicking here.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Amazon Is Poised to Pull Back originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com, Apple, and eBay. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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