Chandler Lutz

Amazon, the Perfect Short?

Great article! I have to say that I agree with pretty much everything you say...Amazon has a great brand, but their valuation is in the upper stratosphere especially as the US economy is facing slowing consumer spending and rising fuel and commodity costs. That said, I am reluctant to short Amazon's shares since I can't identify a catalyst that will drive shares down. Really, the only ones that I see you mention (and please correct me if I'm wrong) are the selling of shares by Legg Mason or the CEO. Although both of these are possible, identifying the probability of such events or when they will occur is nearly impossible....and of course to quote Keynes "The market can stay irrational longer than you can stay solvent."