Amazon's Stock Is Overvalued, Overloved

(TheStreet) -- In the early 2000s, AmazonAMZN distinguished itself as a dot-com survivor, emerging from the tech wreck bloodied, but unbowed. Today, it is among the most powerful companies on the Web. Superlative inventory management, low pricing and innovative rewards programs have helped Amazon propel revenue 32% a year since 2008. Despite Amazon's outstanding fundamentals, its stock is overvalued and overloved. There are signs that the growth trajectory at Amazon is tapering. Whereas sales expansion remains brisk, hitting 36% in the seasonally strong fourth quarter, profit growth was marginal. Amazon's quarterly net income rose 8.3% and earnings per share ascended 7.1%, earning a growth score of 1 out of 5 from TheStreet Ratings' quantitative equity model. Continue reading the article.