Wall Street is all about expectations, and e-commerce giant Amazon.com (AMZN) has been falling short of analysts’ projection for awhile now. That’s why Greenlight Capital’s David Einhorn added the name to his “bubble basket” of short positions.
According to his fund’s Q3 investor letter, as shared by Business Insider, Einhorn said, “We added to our exposure of “Bubble Basket” shorts, AMZN’s recent disappointment is notable in that for years, the story has been that AMZN isn’t profitable because it is growing so fast. Now growth is slowing, but rather than unleashing higher profits, the slower growth is leading to even greater losses. One of the principal bullish assumptions supporting many bubble stocks is, “the company is growing too fast to be very profitable.” We think AMZN is just one of many stocks for which this narrative will ultimately prove false.”
Shares of Amazon fell 2.45% in recent trading to $295.47. The name, currently valued at $137.21B, trades at a 2015 forward price-to-earnings multiple of 332.49x, and has a median Wall Street price target of $350 with a high target of $450. Approximately 3,3M shares have already changed hands, compared to the stock’s average daily volume of 3,63M.
In the past 12 months, shares of Seattle, Wa.-based online retailer have traded between a low of $284.00 and a high of $408.06 with the 50-day MA and 200-day MA located at $313.22 and $321.55 levels, respectively. Additionally, shares of AMZN trade at a P/E ratio of 9.90 and have a Relative Strength Index (RSI) and MACD indicator of 40.67 and -0.08, respectively.
AMZN currently prints a one year loss of about 15.59%, and a year-to-date loss of around 24.07%.