7 Tech Stocks Challenging Their Dot-Com Price Highs

But not all of these picks are buys

      View All  
7 Tech Stocks Challenging Their Dot-Com Price Highs

Amazon

amazon1 7 Tech Stocks Challenging Their Dot Com Price Highs 3/21/2000: $72.38
3/21/2012:
$191.73

Don’t be fooled by the fact that shares of Amazon (NASDAQ:AMZN) have more than doubled since the dot-com days. It has flopped in the short term, from almost $250 in fall 2011 to tally a nearly 20% decline in less than six months.

True, Amazon has been a perennial outperformer … but it’s getting squeezed and could be in trouble. Amazon’s net profit is normally about 5% of revenue thanks to rock-bottom pricing, and it’s investing a huge amount of capital in its Kindle Fire. In fact, the company will pretty much break even in its next earnings report because of a tremendous amount of profits being siphoned off for research and subsidies of the Kindle tablet.

So while Amazon might be above its dot-com valuation, there are hints that its upward momentum is waning.


Article printed from InvestorPlace Media, http://investorplace.com/2012/03/7-tech-stocks-challenging-dot-com-highs/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.