Monday, April 29, 2013

Investopedia: Slower Growth And Better Margins Probably Won't Help Amazon

If you ask most of the sell-side analysts and investors who follow Amazon.com (Nasdaq:AMZN) if they want high growth or stronger margins, I suspect that the answer will be “yes, both of those”. As a company with more than $100 billion in enterprise value and pretty eye-popping profit/earnings multiples, there are a lot of demands on Amazon and a lot of expectations about what the company ought to be. Although I do believe that Amazon's growth is likely to continue to slow (with improving margins) and that the cash flow-based valuation is reasonable, it won't surprise me if the stock stays stuck in this range of $255 to $275 for a little while longer.

Please continue here:
http://www.investopedia.com/stock-analysis/042613/slower-growth-and-better-margins-probably-wont-help-amazon-amzn-goog-ebay-nflx-aapl.aspx

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