Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Amazon Still Too Expensive

|Includes:, Inc. (AMZN)
By Scott Rubin

On July 22nd, Amazon (NASDAQ:AMZN) reported earnings, missing Wall Street estimates by a wide margin. The company reported EPS of $0.45 versus consensus estimates of $0.54. The stock was crushed to the tune of more than 10% after reporting the disappointing quarter.

In the recent market rally, however, AMZN has recovered rather impressively. On Friday July 23rd, the stock opened in the $106 range. During today's trading session, AMZN has made it all the way back to around $117. Prior to the earnings miss, the stock was trading at around $120.

The valuation in AMZN is just too high right now, particularly in light of continuing concern over the U.S. consumer. The shares trade at a trailing P/E of 48.33, a forward P/E of 32.35, and a PEG ratio of 1.65.

If another downtrend manifests itself this week, and the S&P is not able to remain above its 200 day moving average, look to get short AMZN right away. The premium in this name is just too high right now.

Disclosure: No Position