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Amazon: Should You Put New Money to Work?

Amazon landed on the trader radar after Credit Suisse upgraded the e-tailer from Neutral to Outperform and set a price target of $270.

The firm cited Amazon’s historic outperformance following share buybacks, as well as strong numbers so far this year. In addition, reports suggest Amazon is developing a front-lit Kindle, which would make reading in the dark easier.

Despite the positive note from CS, none of the Fast Money traders suggest putting new money to work in this stock, right now.

Trader Stephen Weiss thinks the company’s dance with the government about collecting sales tax will come to a crescendo. “It’s a great way for a cash strapped government to raise money,” he says.

Trader Brian Kelly is concerned that Apple may introduce a new product that competes more directly with the Kindle. “There’s talk of an Apple mini-iPad – priced around $200,” he says.

Trader Steve Grasso think Amazon is at the mercy of the broader market. “The technicals looks great but the market has to participate for the stock to climb higher.”

All told, there are better places to put money to work.

* You can find our conversation about Amazon approximately 5 minutes into this video clip.


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Trader disclosure: On May 15, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Stephen Weiss is long AIG; Stephen Weiss is long JPM; Stephen Weiss is long VZ; Stephen Weiss is long WLP; Stephen Weiss is long NAV; Stephen Weiss is long HK; Stephen Weiss is short CHK; Stephen Weiss is short JCP; Stephen Weiss is short JEC; Brian Kelly is long T; Brian Kelly is long VZ; Brian Kelly is long KRE; Brian Kelly is long WFC; Brian Kelly is long USG; Steven Grasso is long ASTM; Steven Grasso is long AVAV; Steven Grasso is long BA; Steven Grasso is long D; Steven Grasso is long FRO; Steven Grasso is long LNG; Steven Grasso is long MHY; Steven Grasso is long NUAN; Steven Grasso is long MO; Steven Grasso is long PFE; Steven Grasso is long S; Steven Grasso is long XLU; Steven Grasso is long ZAZA

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Jon Najarian is long call spreads DMND
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Jon Najarian is long call spreads NFLX
Jon Najarian is long call spreads VALE
Jon Najarian is long call spreads V
Jon Najarian is long call spreads MAKO
Jon Najarian is long call spreads GRPN
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Jon Najarian is long GLUU
Jon Najarian is long CIGX
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For Alan Rifkin
Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from HD
Barclays Bank PLC and/or an affiliate has received compensation for investment banking services from LOW
Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from HD
Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from LOW
Company has been an investment banking client of Barclays: HD
Company has been an investment banking client of Barclays: LOW
Company has been a non-investment banking client of Barclays: HD
Company has been a non-investment banking client of Barclays: LOW

For Deborah Weinswig
Citigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of JCP
Ciitigroup Global Markets Inc. or its affiliates beneficially owns 1% or more of any class of common equity securities of TGT

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