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$75.04 2.55 (3.52%)
7/8/2008 4:00 PM

Amazon.com, Inc. (AMZN)

CAPS Rating:
**

The Company operates retail websites and offers programs that enable third parties to sell products on its websites. It also operates other websites that enable search and navigation and a movie database.

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Recs

13

Avatar jester112358 (99.58) Submitted: 2/22/08 2:28 AM : Underperform Start Price: $70.54 AMZN Score: -12.14

Bezos the CEO just unloaded $135M of his shares near Feb 15. He knows something others will discover. He didn't sell at all during this last years huge price buildup. This stock is overpriced with likely reduced future earnings. I shorted this one once before and had to concede to the bulls. This insider selling just means I should have been more patient. So, here goes again with the recession as a headwind.

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Avatar YoungInvestor99 (31.11) Submitted: 4/28/08 9:35 PM

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And I assume he does not need $135 million in cash for any sudden expense. I am sure his kids if he has any have gotten or already getting college educations that couldnt cost more than $1 mil, and doesnt he already live in a nice house?

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Avatar YoungInvestor99 (31.11) Submitted: 4/28/08 9:38 PM

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I'm also down on my underperform pick, I think a lot of investors are bullish on amazon which drives up the price and its been beating the market for a while because of this. A lot of people follow Amazon. This could probably continue for a while and I am considering changing my pick.

Judging from their financials, they look like a well run company, and they also have a great moat, with share of mind to boot(Who does not shop on amazon?). Long term they are a profitable company but you have to pay in full to play with them, and probably pay for a couple years in advance on any gains you get.

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Avatar YoungInvestor99 (31.11) Submitted: 4/28/08 9:41 PM

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Also note their market cap is over 20 times their book value, if I calculated correctly.

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Avatar seattleitestocky (< 20) Submitted: 5/31/08 11:30 PM

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I will have to disagree with this bear pitch. Bezos sharing 2million shares means nothing. For God sake the guy has 97 million shares. Just because he sold 2 million, does not mean he knows something that we dont know. His salary is 80K. He has full right to sell 2 million of his 97 million shares. Remember he still has 95 million more. So him selling 2 million is not a bear pitch. Gimme a break. You got to have something better. I cant believe this is the top bear pitch.

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