Incidentally I'm short AMZN and LNKD so I agree with those two.
only posts EBIDTA of $2 billion -- and under a dollar of diluted EPS
has only a 1.17% operating margin
Trading at a 100 forward P/E
This is more dangerous because it's still in a "growth" stage and investors run these stupid stocks to the moon. I'd put a stop on this short just in case.
Also been short LULU for awhile. It's been knocked down hard this summer and may rally hard but ultimately I think this is a long term dog for 3 reasons:
1. High-end retail gets punished the hardest during stock market declines, so if there is one, LULU is toast.
2. Every day that goes by a competitor gets closer to stealing market share. It's not hard for the big companies to replicate this yoga gear. Granted, you'll always have die hard fans stick with LULU which will keep them in business but you already see the likes of UA, Nike, and Gap breaking into this market.
3. The primary impetus to LULU's success has been the Yoga fad, if this fad declines (I think it's already peaked) then of course that's a big problem. I know they're trying to diversify into other areas but I simply don't think they'll be able to compete as well on broad athletic turf where you already have entrenched names dominating the field.
GKD is a dangerous short as it is pegged to any QE from any central bank going forward.
The beloved Whole Foods is on my watch list.
This much loved company is one of the few growth stocks that did not get knocked down this summer.
If this house of cards come down...anything tied to consumer credit will probably get hit towards the end of the cycle.
People will use up what is left on Credit Cards...if the jobs picture gets worse then those debts will need to be written off. American Express, Capital One, Discover, Master Card would be on my list.