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We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member., Inc. (AMZN)’s Valuation Is Way Too High: Alexis Dawance, Inc. (NASDAQ:AMZN) had got its approval from FAA for testing the drone delivery. But FAA has imposed a lot of rules which restrict the scope of testing. Meanwhile many investors believe that getting FAA approval for testing might boost the stock prices up. But, many other believe that the limited scope of this testing might not have any significant impact. Head of Equities at MFM Mirante, Alexis Dawance talked on CNBC about, Inc. (NASDAQ:AMZN) stock and why he thinks that this stock is overvalued.

Amazon, is AMZN a good stock to buy, Amazon Unlocked, Android,

Dawance’s general opinion is that, Inc. (NASDAQ:AMZN) stock is overvalued and he mentioned that it has nothing to do with the recent approval for drone delivery. He accepted the fact that, Inc. (NASDAQ:AMZN) is trying to do too much by venturing into multiple businesses.

“[..] The problem with Amazon today is that its an internet company that’s becoming a super market and its still trading at an internet level. So we mean that the valuation is way too high and probably one day investor would wake up and say why am I paying two times sales for retailer, while you can buy Walmart or other people at half time sales,” Dawance said., Inc. (NASDAQ:AMZN) had many failure with products like Fire phones and their Kindle was also not a big revenue generator. Dawance pointed out that, Inc. (NASDAQ:AMZN) has close to 150000 employees and cannot be considered as a small internet startup company. He thinks that only an internet startup company deserves a premium which, Inc. (NASDAQ:AMZN) is trading at currently.

Dawance said that the e-commerce giant is growing at a 13%, which he feels is very low for a high profile company like, Inc. (NASDAQ:AMZN). He pointed out that growth rate of Apple Inc. (NASDAQ:AAPL) is much higher and multiples are very low when compared to, Inc. (NASDAQ:AMZN).

Dawance accepts the fact that, Inc. (NASDAQ:AMZN) has changed the e-commerce industry, but he said that it was a long time ago. Now-a-days companies like Walmart has invested a lot in internet and enable online shopping. He feels that there is no differentiator in, Inc. (NASDAQ:AMZN) e-commerce these days.

Disclosure: None.

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