Can things actually get worse for Amazon.com (Nasdaq: AMZN)? Well, yes.
As fears of the Fed raising interest rates continue, it’s the high-multiple stocks that are going to be hit hard, and there aren’t any more overvalued stocks than not-yet-profitable Internet companies like Amazon.com, which continued its recent dramatic plunge on Tuesday. Amazon.com fell nearly 11 percent, plummeting 12-15/16 at 105-13/16 as bearishness in the Internet sector continued.
A cover story in Barron’s, headlined “Amazon.Bomb” didn’t exactly help the stock. Barron’s story reiterated what many on Wall Street have been worrying about: Amazon.com’s losses are growing, and profits are nowhere in sight.
Amazon.com is trading at less than half its high of the year, but, given the circumstances, it can hardly be considered cheap.