Stocks Weaker... Einhorn's Stark Warning Rings

Stocks are weaker across the board Friday, with high-growth/high-multiple Nasdaq names again leading the downside. The Nasdaq is down 66 points or 1.6%, while the Dow and S&P 500 are down less than 1%.

Post-earnings action in Amazon (NASDAQ: AMZN) appears to be partially to blame for the Nasdaq weakness. Shares of the Internet giant are down a dramatic 9% despite earnings that matched analyst expectations and revenue that beat. Analysts voiced concerns about unit growth which slowed to 23% versus the consensus of 24%. In addition, investors are worried as consolidated segment operating income (CSOI) guidance of $0-$400 million suggests the company is entering another investment phase with the Street looking for spending for its international business, AWS and digital content offerings.

Given that Amazon has always been given a 'pass' on profits, the sell-off suggests more broadly that investors are cautious about paying up for revenue growth without corresponding earnings growth. This comes just days after a warning from noted investor David Einhorn that, "now there is a clear consensus that we are witnessing our second tech bubble in 15 years."

In addition to Amazon, looking at individual name that are being slammed today: Pandora (NYSE: P) (-15%), Trulia (NYSE: TRLA) (-8.6%), Zillow (Nasdaq: Z) (-8.4%) Twitter (NYSE: TWTR) (-6.4%), Yelp (NYSE: YELP) (-6%), FireEye, Inc. (NASDAQ: FEYE) (-5.6%), Workday, Inc. (NYSE: WDAY) (-5.6%), ServiceNow, Inc. (NYSE: NOW) (-5.5%), TripAdvisors (NASDAQ: TRIP) (-5%), Facebook (NASDAQ: FB) (-4.6%), Netflix (NASDAQ: NFLX) (-4.8%), The Priceline Group (Nasdaq: PCLN) (-4.5%), Tesla Motors, Inc. (NASDAQ: TSLA) (-3.7%).

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