NEW YORK (TheStreet) -- Amazon
(AMZN) is down nearly 25% this year.
It's fallen victim to the vicious sell-off in momentum stocks that's gripped the market since February.
In 2013, Amazon's stock climbed a massive 62%. For company the size of Amazon, that is an incredible appreciation of capital and wealth. Looking back on it, Amazon was probably the poster child of 2013's bull market. At one point last December, Amazon's market cap exceeded both Coca-Cola's and AT&T's. Yet Amazon's quarterly net income was roughly $100 million while Coca-Cola and AT&T were earning billions.
Of all the momentum stocks selling off right now, Amazon is the one to watch most closely. Not only because of its size, but also because what it represents -- an American Internet retailer selling merchandise around the world. The fact it's already down so much this year signals several core differences between 2013 and 2014. Growth, Internet, and consumerism are on very few money manager's radar. Amazon's P/E ratio has gone from 1300 seen last December to about 472 as of the market close on Tuesday.
On StockTwits, market participants of all strategies and sizes are watching Amazon. The number of people mentioning Amazon in their messages on StockTwits has gone from 500 to more than 2,000. Here are some examples of the commentary:
anything with PE north 100 is smashed. make a list. and 60min range fails so will the pain thresholds. rinse & repeat $LNKD $AMZN etc -- dan shapiro (@danshep55) Apr. 28 at 01:01 PM
$FB $LNKD $YELP $YHOO $AMZN $CRM Sell-offs like these are never finished within days. Will take long time for recovery $STUDY -- Patrick Walther (@patrick_walther) Apr. 28 at 02:34 PM
For more on these deals and others, follow Stefan Cheplick on Twitter and StockTwits. At the time of publication, the author held no positions in any of the stocks mentioned. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
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