Exactly a year ago we saw analyst and investors falling all over each other to upgrade Apple (AAPL). Suggesting that it would double within a short period of time to become the first Trillion dollar company. Since then the stock is down 28%.
We are now witnessing the same insanity with Amazon (AMZN). Case and point….
- Three reasons Amazon’s stock may be ‘unstoppable’
- This Venture Capitalist Thinks Amazon Stock Could Rise 900%
Seriously? A $3 Trillion dollar valuation for a tech company with only $1 Billion in net earnings. Yes, I get it. Amazon is the future as it is best positioned to take advantage of future tech. Things like Amazon’s Bezos: We’re near a ‘golden age’ in AI Just don’t forget, the investment landfill is full of such visionary companies. And finally, Jeff Bezos sells $671 million worth of Amazon stock
Undoubtedly, Amazon (AMZN) is very well run company. Yet, considering its valuation levels and the general overvaluation levels in the overall market, I believe it would be foolish to chase the stock here. Instead, you might want to consider buying something a little bit more undervalued. Like an entire Russian Market (RSX), selling today at a market cap not that much higher than Amazon’s own.
