Investopedia: Amazon Seems Due For A Breather

For a company that has generally been very good at what it does, Amazon (Nasdaq:AMZN) gets no small amount of flack for its strategic decisions. Whether it's the decision to compete with Apple (Nasdaq:AAPL) in the tablet and digital media spaces, or its move into markets such as business-to-business MRO retailing and cloud services, there's no shortage of carping about Amazon's margins and its proclivities toward "empire-building."

And yet, Amazon has been a painful company to short. While there have been some notable swoons, the stock is up more than 250% over the past five years - well ahead of eBay (Nasdaq:EBAY) and Google (Nasdaq:GOOG) and on par with Apple's returns given the latter's recent fall from grace. Though I've long been an Amazon bull and believe this company has more innate margin and free cash flow (FCF) potential than the current numbers show, I think valuation is plenty rich for today.

Please follow this link for more:
http://www.investopedia.com/stock-analysis/2013/Amazon-Seems-Due-For-A-Breather-AMZN-AAPL-NFLX-WMT0131.aspx