At TheStreet.com, Vishesh Kumar wonders if investors are getting a bit ahead of themselves with their euphoria over Amazon’s impressive first quarter sales reports – leading to soaring stock prices. He even quotes one skeptical investor: “We believe the company is performing above even our own optimistic expectations, which would make us comfortable being buyers again in the low $50s,” Stifel Nicolaus analyst Scott Devitt wrote in a note on Friday downgrading the stock to hold.
The aggressively bullish sentiment in the stock, Kumar says, might be stemming from those looking beyond e-commerce to some of Amazon’s more technically ambitious projects. And he notes that there isn’t any obvious event approaching that would trigger a fall in Amazon shares. Instead, “a gradual decline in the stock could ensue as the euphoria wanes, if the overall bull market wanes or if other macroeconomic new puts a dent in Amazon’s prospects.”
