There are two components of successful long-term investing, and both are equally important. First, buy shares of good companies that can grow for many years to come. Second, make sure you pay a reasonable price for those stocks.

That second part often gets thrown away during raging bull markets. Ignoring valuation can sometimes work out fine, but it can also lead to big losses, even if the company does well. Two growth stocks that look too expensive are Amazon (NASDAQ: AMZN) and (NASDAQ: NFLX). Here's why these market-leading companies are questionable investments right now.

E-commerce and cloud computing giant Amazon is worth around $1.3 trillion. Relative to any metric, that's a pricey valuation. Amazon is facing the dual challenges of sluggish consumer demand and a rapidly slowing cloud business.

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Source Fool.com