NEW YORK (TheStreet) -- While I have never believed that there is such a thing as a "perfect stock," I have always remained cautious at stocks that I believed are "priced for perfection."Investors are often quick to throw valuation metrics out of corporate windows in favor of "zeal," a quality that flies in and attaches to names such as Chipotle ( CMG) or Salesforce.com ( CRM) and to a lesser extent virtualization king VMware ( VMW). These are examples, of stocks that by virtue of their enormous trading multiples that fit the description of "priced for perfection."
The stock (then) took a pounding on the announcement. Wall Street wants growth and lots of it. But it seems that many analysts as well as investors do not appreciate the fact that such tremendous growth comes at tremendous cost. Leading into the company's Q1 earnings report, I was eager to see if Amazon can help avert my concerns of perfection.