Jim Cramer Discussed These 15 Stocks Recently

6. Amazon.com Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 340

Addressing concerns about Amazon.com Inc (NASDAQ:AMZN) and its recent stock struggles, Cramer reaffirmed his confidence in the tech giant:

“Amazon is what I call ‘money side up.’ This stock can go down, and when it does, what do you do? You buy it. That’s what I’m telling club members. I regard this stock going down as a gift, you wouldn’t be able to get it otherwise. This thing is amazing. Think about it: people are ordering from Amazon while selling the stock. That makes no sense to me.”

Recurve Capital stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) – 5.1% of assets as of 12/31/2024

Amazon has been an agent of disruption for a long time in retail, cloud computing, and beyond. Its consumer business is incomparable for small parcel, general merchandise. Prime delivery windows keep shrinking, which keeps pulling more market share Amazon’s way. It has an amazing transportation, fulfillment, and logistics network capable of service levels that were unthinkable at current prices just a couple decades ago. Additionally, AWS is a leader in cloud verticalization, powered by proprietary semiconductors, hardware, software, facilities, and more. Amazon’s customer-centricity is the driving force behind its continuous innovation and disruption. As the juggernaut disruptor, it is likely the world’s best company at solving really hard problems for customers at massive scale.

Amazon does not trade at a mid-single multiple of medium-term FCF/share or EPS. Our cost basis was less than 10x our estimate of 2028 FCF. However, few companies reinvest at the rate Amazon does and, theoretically, it could double the free cash flow I model simply by moderating its reinvestments for a year or two – but that may not be a great outcome for long-term investors. This is why it is important to evaluate companies based on owner’s earnings, not reported earnings. For instance, a private owner of Amazon might shut down Project Kuiper and Alexa and massively increase EPS and FCF/share.”