Logo_text2.gif

Reviews and commentary on movies, music, stocks, sports, and more…

« Stock Short Update: The Knot, Inc (KNOT)
Amazon.com Inc (AMZN) Could Drop 50% »

Stock Short of the Week: Amazon.com Inc (AMZN)

Published by admin May 17th, 2007 in investing, stocks, business. Tags: , , , , .

Shares of Amazon.com Inc. (AMZN) are currently trading at just above $63 per share.  That’s 55x even the most bullish estimate of $1.14 per share for 2007 earnings.  At 25% projected annual earnings growth over the next 5 years, that gives AMZN a PE/Growth ratio of 2.2x.  Sure, we all love and use Amazon to have everything from the latest Harry Potter book to 2.5 lb. packs of rattlesnake meat conveniently shipped to our homes.  And, yes, AMZN did surprise investors with a particularly strong 1st Quarter (prfit margins expanded for the first time in two years). 

But, does that make AMZN significantly more valuable than other stellar performers? By comparison, Google (GOOG) is currently trading at about 31x earnings for a PEG ratio of 1.0x, Apple (AAPL) is also trading at roughly 31x earnings for a PEG ratio of 1.5x and Starbucks (SBUX) is trading at roughly 32x earnings for a PEG ratio of 1.4x.

Therefore, we would recommend purchasing the July ‘07 $60 puts (ZQNSL.X) - currently trading at $2.35 as a way to play this current overvaluation.

By the way, we do like GOOG at $472 a share.  We also suggest keeping an eye on TheStreet.com (TSCM) – start buying if it gets to the low-$10 range.  And, TheKnot.com (KNOT) is starting to look attractive again at around $18.75 per share – we’d be buyers if it goes below $18.

Share and Enjoy:These icons link to social bookmarking sites where readers can share and discover new web pages.
  • del.icio.us
  • digg
  • Fark
  • Furl
  • NewsVine
  • Reddit
  • Spurl
  • TailRank
  • YahooMyWeb


Related Entries

26 Responses to “Stock Short of the Week: Amazon.com Inc (AMZN)”

Feed for this Entry Trackback Address
  1. 1 Amazon.com Inc (AMZN) Could Drop 50% at CandidCritic.com Pingback on May 23rd, 2007 at 8:55 am
  2. 2 Tramadol hcl 50 mg tab. Trackback on Nov 4th, 2007 at 1:04 am
  3. 3 credi repair credit card Trackback on Nov 4th, 2007 at 8:26 pm
  4. 4 minnesota casino directory Trackback on Nov 19th, 2007 at 10:09 am
  5. 5 all internal girls Trackback on Dec 10th, 2007 at 1:32 am
  6. 6 credit card comparison Trackback on Jan 1st, 2008 at 1:20 pm
  7. 7 Order xanax online no rx. Trackback on Jan 5th, 2008 at 7:38 pm
  8. 8 playvegasfromhome com Trackback on Feb 14th, 2008 at 1:27 pm
  9. 9 car insurance cheap uk Trackback on Feb 17th, 2008 at 8:16 am
  10. 10 bell air insurance Trackback on Mar 4th, 2008 at 1:31 pm
  11. 11 Lipitor when genaric. Trackback on Mar 23rd, 2008 at 3:54 am
  12. 12 equifax credit information services inc Trackback on Mar 25th, 2008 at 11:22 pm
  13. 13 bluecross ins Trackback on Mar 30th, 2008 at 6:00 am
  14. 14 kostenlose internet kasino gutschrift Trackback on Apr 5th, 2008 at 8:47 pm
  15. 15 Acomplia alcohol. Trackback on Apr 29th, 2008 at 8:37 am
  16. 16 ninja 777 casino online Trackback on May 19th, 2008 at 10:06 pm
  17. 17 Tramadol. Trackback on May 28th, 2008 at 11:12 pm
  18. 18 car insurance comparison Trackback on May 31st, 2008 at 1:51 am
  19. 19 Fuel man gas card business. Trackback on Jun 13th, 2008 at 5:25 am
  20. 20 novità casino online Trackback on Jun 22nd, 2008 at 7:09 am
  21. 21 fema flood insurance rate map Trackback on Jul 10th, 2008 at 1:59 am
  22. 22 gambling term Trackback on Jul 27th, 2008 at 3:25 am
  23. 23 Generic cardura. Trackback on Aug 27th, 2008 at 9:56 pm
  24. 24 Buy generic atrovent online. Trackback on Aug 27th, 2008 at 10:03 pm
  25. 25 tower life insurance company Trackback on Aug 28th, 2008 at 2:48 am
  26. 26 casino italiani legali Trackback on Sep 7th, 2008 at 7:23 am

Leave a Reply


« Stock Short Update: The Knot, Inc (KNOT)
Amazon.com Inc (AMZN) Could Drop 50% »

Search

Latest

RSS


Most Popular Posts


Tags on CandidCritic.com

Subscribe

Subscribe to my RSS Feeds

Categories

Archives