Amazon (AMZN) seems like a great short; trading at over 100X earnings, and the CEO, Jeff Bezos, doesn’t seem to care if the company makes money as he plays with every conceivable idea, including deliveries via unmanned drone. And he’s a CEO without focus, having recently paid $250 million of his own money to buy the Washington Post as a personal project.
An overvalued company with an unfocused CEO would seem like the recipe for a perfect short play, but its been a terrible short for years, as the stock seems to rise no matter what, and we’ve been burned by shorting it on several occasions.
The CNBC article presents both the case for and against going short on Amazon:
