Amazon Stock is over priced and here is what to expect next

Valuations for AMZN stock are usually high. At the current price, other alternative investments are better

Amazon Stock - AMZN - 4-Hour Chart

Amazon stock - AMZN - is over priced. Price is too high relative to what the company can return to investors. Despite the disconnect between Amazon stock and its potential return, AMZN just recently printed a new all-time high. This has been the case for many different stocks recently. However, there is evidence that the US economy is beginning to slow after the Federal Reserve has kept short term interest rates high for so long. With the higher interest rates, employment growth is starting to wane somewhat. One of the factors that has driven stocks higher as they have been moving is rate of growth for the economy and company’s revenues. If the rate of growth slows because of a declining rate of growth in the economy, stocks such as Amazon stock will wobble and eventually sell off. Amazon stock, along with the broad stock market, will likely sell off.