Amazon Showing Some Vulnerability
Amazon (AMZN) is finally flashing some signs of weakness. This is the company that will sacrifice margins, then sacrifice them again all in the name of sales. The God of Sales rules Amazon, but the technicals may be signaling that investors would like to see some margin pickup here or valuation based on earnings that are slightly more in line with the markets. Amazon has been an anomaly that has traded with a triple-digit P/E for about as long as I can remember. Even the forward P/E is often three numbers in a row rather than just two.
AMZN StockCharts.com View Chart » View in New Window »The drop today may have something to do with Tilson's tout that Netflix (NFLX) is better positioned now than Amazon was 10 years ago, but the pattern in the charts for Amazon has been setting up for days, so I believe that any correlation there is spurious at best....184 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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