Amazon Is Still Too Expensive

Amazon‘s ($AMZN) stock is down a lot since its October plunge. On October 25th, the shares dropped from $227.15 to $198.40 after missing its earnings by 10 cents per share. The stock is currently down to $191.

So is it cheap now?

Nope, not even close. Put it this way: Wall Street has cut its EPS estimate for next year from $3.80 four months ago to “only” $2.05 today.

At the current price, that’s still more than 93 times earnings.

Stay away from Amazon.

Posted by on November 30th, 2011 at 11:16 am

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