Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online retail giant Amazon.com (Nasdaq: AMZN ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Amazon's business and see what CAPS investors are saying about the stock right now.
Amazon facts
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Headquarters (Founded)
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Seattle (1994)
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Market Cap
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$40.48 billion
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Industry
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Internet retail
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Trailing-12-Month Revenue
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$20.51 billion
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Management
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Founder/CEO Jeffrey Bezos
CFO Thomas Szkutak (since 2002)
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Trailing-12-Month P/E (AMZN and S&P 500 index)
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61.7 and 18.9
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Cash/Debt
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$3.21 billion / $109 million
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Year-to-Date Return
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83%
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Competitors
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Overstock.com (Nasdaq: OSTK )
eBay (Nasdaq: EBAY )
Barnes & Noble (NYSE: BKS )
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CAPS Members Bearish on AMZN Also Bearish on
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Google (Nasdaq: GOOG )
Research In Motion (Nasdaq: RIMM )
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CAPS Members Bullish on AMZN Also Bullish on
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Apple (Nasdaq: AAPL )
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Sources: Capital IQ (a division of Standard & Poor's), Morningstar, and Motley Fool CAPS.
On CAPS, 25.9% of the 4,003 members who have rated Amazon believe the stock will underperform the S&P 500 going forward. These bears include All-Stars TMFBuck and ProfyB, both of whom are ranked in the top 10% of our community.
Two months ago, TMFBuck tapped Amazon as a brilliant business selling at a bad price:
Great management team and a wonderful company. Why short? This thing is really expensive and to their credit the management team recognizes it. They bought Zappos and were smart enough to use stock to do it. While tipping my hat to Bezos, I'll take the downside here.
In a pitch from last month, ProfyB also helped Fools proceed to checkout:
The faster Amazon grows, the quicker it gets to being saturated. ... You could try to cash out before everyone else realizes this, but that's quite the gamble. In the end, an investment in Amazon today will probably provide a close to 0% return per annum considering its current price is marked up to account for assumed future earnings. ... Add to the fact that Amazon has an incredibly low profit margin, which gives them very little room to maneuver, and a plethora of competitors in the online retail space … The problem with high P/E stocks is if they fail to deliver on expectations, they can tumble very quickly.
What do you think about Amazon, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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