Jim Iurio And Jim Friedland Have Opposing Views On Amazon (AMZN)

CNBC's Erin Burnett talked to Jim Iurio of TJM Institutional Services and Jim Friedland of Cowen & Co. about Amazon.com (NASDAQ: AMZN).

Jim Iurio is bearish on Amazon (AMZN), while Jim Friedland thinks that this stock is a buy. Jim Friedland said that Amazon (AMZN) has very high returns on invested capital and it is currently trading at EV to free cash of 6%. He believes that Amazon (AMZN) is one of the best growers in tech space.

Jim Iurio thinks that AMZN has a lot of long term potential, but in the near term he is a skeptic. He is not happy with the way this stock traded after the earnings report. Amazon (AMZN) dropped $8.5 billion of its market cap in a session that resembled a lot to the flash crash. Jim Iurio also doesn't like AMZN's valuation. It is lower than it used to be, but it is still very high.

Jim Friedland added that Amazon's (AMZN) Kindle is going to gain some share against the competition, and although it is only 5% of its business, this product will play an important role for Amazon (AMZN). He also said that Amazon's P/E is high, but investors should look at free cash flow per share which is trading at only 17 times next year's free cash flow. This indicator is more adequate for AMZN's valuation, thinks Jim Friedland. He also believes that this stock will outperform the S&P 500 by 35%. He added that he won't argue near term volatility in the stock, but fundamentally AMZN is a buy.