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 (AMZN +1.93%) 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
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Headquarters (founded) |
Seattle, Wash. (1994) |
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Market Cap |
$122.6 billion |
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Industry |
Internet retail |
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Trailing-12-Month Revenue |
$64.0 billion |
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Management |
Founder/Chairman/CEO Jeff Bezos CFO Thomas Szkutak |
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Return on Equity (average, past 3 years) |
7.6% |
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Cash/Debt |
$7.9 billion / $3.0 billion |
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Competitors |
Apple eBay Wal-Mart |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 20% of the 6,813 members who have rated Amazon believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, 3Rules, wrote that the Amazon bear case all boiled down to price:
I know, it's always a foolish bet to sell AMZN short. My sentiment isn't against the company or the stock in the long term; I just think it's overdue for a major correction. With a forward (projected) P/E of 80, and trading at over 14 times book value, I believe stock is ripe for some major profit taking. The chart for the last 4 months shows a series of lower highs and lower lows, which does not portend well for the near future.
