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Published: July 30, 2007, 8:57 am

Tags: charts, forex, futures, stocks, psychology, trading, technical analysis, real estate, lifestyle

Gapping up: RCCC +38.3%, GPCB +16.8%, TMY +12.9%, VVUS +10.0%, CYTR +9.8%, IR +7.5%, HRT +6.3%, HOKU +4.3%… Gapping down: AHM -42.9%, VCLK -15.4%, RSH -3.8%, CSG -3.5%, ELN -3.3%. Barron’s reports Amazon’s (AMZN) p/e multiple suggest investors’ enthusiasm has gotten ahead of the co’s growth potential, leaving the shares ripe for a markdown. Late last week Amazon traded for 78x analysts’ earnings estimates of $1.07 a share for 2007, and 56x ‘08 estimates of $1.51. Even if the co achieves this anticipated 41% jump in earnings next year, it’s hard to justify such a premium to its growth rate, especially when Internet peers such as eBay (EBAY), which trades at about 21x 2008 earnings estimates on EPS growth of 16%, boast higher net operating margins. “On a lot of items, Amazon is not making much margin,” says Darren Chervitz, director of research at the Jacob Internet Fund, which owns eBay shares but not Amazon. Says a fund

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