Point of referenceInternet Stocks: Amazon Overvalued, Shutterfly Won't Be Profitable Oct. 5, 2006 4:48 AM Its been a while since I highlighted one of Zacks.coms Bear of the Day stocks. But I couldnt ignore todays pick: Amazon.com (NASDAQ:AMZN). Zacks asserts that the companys investments in new businesses are not working out, and that the stock is considerably overvalued. An excerpt: We remain negative on AMZN shares, due to worsening fundamentals, contracting profit margins, and deteriorating operating leverage. Whats more, the company continues to invest in new businesses, which is not translating into bottom-line growth. Given this situation, we think investors will soon begin to realize that Amazon.com does not deserve its expensive valuation. As such, we reiterate our Sell rating and $20 target price, which is roughly 30 times our 2007 EPS estimate. Zacks goes on to assert that the companys investments in new businesses and infrastructure is pressuring already thin profit margins, and its shrinking gross margin trend will be difficult to reverse without negatively impacting its sales growth. Amazon today rose 91 cents to $32.61. There are countless negative articles about Amazon back in the day. Amazon is trading close to $1300 today. The future is here. What side of history will you be on?