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 (

) and Amazon (

) 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.