Monday, July 26, 2010

Watch Amazon.com -- wait to buy

Amazon.com (AMZN) continues to have very rapid growth, with trailing twelve month revenue up 38% year-over-year and it has doubled in price in the last year.  But Amazon missed Wall Street's profit expectations and the stock has retreated from $150 to current levels around $120.  This is a stock that will come back at some point assuming it continues to grow as fast as it has, but I want to wait and see if it will drop further before buying it.  Maybe it will go as low as $90-100 and if it does I'll buy it for sure at that level.