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 (NASDAQ: AMZN  ) 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.

Amazon facts

   

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 (NASDAQ: AAPL  )

eBay (NASDAQ: EBAY  )

Wal-Mart (NYSE: WMT  )

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.


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Related Tickers

4/17/2014 3:59 PM
AMZN $324.91 Up +1.23 +0.00%
Amazon.com CAPS Rating: ***
AAPL $524.94 Up +5.93 +0.00%
Apple CAPS Rating: ****
EBAY $54.97 Up +0.28 +0.00%
eBay CAPS Rating: ****
WMT $77.66 Up +0.44 +0.00%
Wal-Mart Stores CAPS Rating: ***

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