Netflix (NFLX) and Amazon (AMZN) Are Due For A Fall

There are two tech companies that are trading at levels that are just way too high. Don't get me wrong. Netflix (NFLX) and Amazon (AMZN) are great companies that will continue to grow earnings for the foreseeable future but they are trading at levels that are way too high. Netflix is trading at $147 a share which is over 50 times earnings. No company deserves that kind of multiple unless they are growing earnings at a 50% clip. Based on its PE Netflix would be one of the largest companies in the Nasdaq in just five years. Amazon is a $67 billion dollar giant that is trading as if it is the early 2000's. The company is trading at 60 times earnings when the company will be fortunate to achieve 20% earnings growth over the next few years. While both are great companies, they are not good investments at their current levels.