by winston » Fri Oct 07, 2016 7:26 am
not vested
Bad Stocks You Should Kick to the Curb: Amazon (AMZN)
by Mike Seyfang
Speaking of Amazon, I’m going to recommend that you dump this stock as well, though it has nothing to do with performance.
Other than perhaps Apple Inc. (NASDAQ:AAPL), Amazon may be the single greatest growth story of the past 20 years.
Amazon founder Jeff Bezos, practically invented internet commerce, and he practically invented cloud services via Amazon Web Services.
As a company, Amazon is simultaneously fighting Wal-Mart Stores, Inc. (NYSE:WMT) and Target Corporation (NYSE:TGT) in retail and IBM and Microsoft Corporation (NASDAQ:MSFT) in business services … and it’s winning this two-front war.
And Amazon may be about to open a third front against shipping giants FedEx Corporation (NYSE:FDX) and United Parcel Service, Inc. (NYSE:UPS).
But no matter how much I love and respect Amazon, I can’t see myself paying 200 times earnings for any stock … even a gem of a company like this one.
If Amazon ever has a significant correction, it’s definitely a stock I’d like to own. But at current prices, Amazon is priced to disappoint.
At the end of the day, all of Amazon’s respective businesses are cutthroat competitive, and its rivals aren’t simply standing by to watch AMZN conquer the world. This means lower margins … and likely a lot of disappointed investors.
Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"