Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online retail giant (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

Headquarters (founded)

Seattle, Wash. (1994)

Market Cap

$27.77 billion


Internet retail

Trailing 12 Months Revenue

$19.17 billion


Founder/CEO Jeffrey Bezos
CFO Thomas Szkutak

Price-to-Earnings Ratio (AMZN and Industry)

43.4 and 7.4

Competitors (NASDAQ:OSTK)
Barnes & Noble

CAPS members bearish on AMZN also bearish on

Research In Motion (NASDAQ:RIMM)

CAPS members bullish on AMZN also bullish on

Microsoft (NASDAQ:MSFT)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, fully 296 of the 1,057 All-Star members who have rated Amazon -- some 28% -- believe the stock will underperform the S&P 500 going forward. These bulls include bobbyabull and mysoftballcoach, both of whom are ranked in the top 20% of our community.

Last month, bobbyabull wrote that Amazon:

... is a great concept that everyone uses from time to time, but it trades at 40X earnings with a PEG above 2.00 (2/5/09) ... At some point, there has to be some profit taking or a slightly disappointing quarter. Amazon trades like a skyrocketing small-cap, which it isn't.

In a pitch from a few weeks earlier, mysoftballcoach also tapped Amazon as a super company trading at a somewhat scary price:

I hate to make this underperform call on Amazon. I love this company and I love their business model. They have emerged as a true powerhouse in the retail industry. HOWEVER, I just can't help believe that consumer spending is falling off a cliff and that this trend will remain for many more months. So even though [Amazon] is among the very best companies, they too will be affected by the economy. As such, I don't believe the stock will be able to maintain the high P/E ratio. Other GREAT companies such as [Google], [Apple], and [Akamai (NASDAQ:AKAM)] have seen contraction in their P/E ratios and I believe it's just a matter of time before the contraction also hits [Amazon].

What do you think about Amazon, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Amazon, eBay, and Apple are Motley Fool Stock Advisor selections. eBay is also an Inside Value choice, as is Microsoft. Google and Akamai are recommendations of Rule Breakers. The Fool's disclosure policy always gets a perfect score.