Amazon.com, Inc. (AMZN): Where Does It Go From Here?

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The stiff competition in online retail market recently led UBS to follow JPMorgan, Piper Jaffray and other analysts to initiate coverage on Amazon.com, Inc. (NASDAQ:AMZN) with Neutral rating. All cited operating costs as the main concern.

The Foolish bottom line

I believe Amazon is going to lose ground in foreseeable future due to competition from Google Inc (NASDAQ:GOOG) and other online retailers, the sales tax battle, and unconvincing analyst sentiment. Moreover, the stock is completely overpriced. Given the new environment in which Amazon.com, Inc. (NASDAQ:AMZN) operates, I strongly believe it is not going to disappear, but would lose ground and perhaps dip back to the low 200’s, which is closer to its real value.

Yaniv Hirsch has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Google. The Motley Fool owns shares of Amazon.com and Google.

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