Jim Cramer is Talking About These 12 Stocks

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 308

Cramer mentioned investors’ fluctuating sentiments about Amazon.com, Inc.’s (NASDAQ:AMZN) earnings. Here’s what he had to say:

“How about Amazon, which is closing on its all-time high again, just over 10 points from here. Even as its last quarter was hated, suddenly though, Amazon’s loved for its consistency, long-term consistency I guess.”

Amazon.com (NASDAQ:AMZN) is a renowned global technology company specializing in online retail, advertising, and subscription services. Despite its prominent position in the market, the company faced challenges following its second-quarter results in late July, with shares in response to weaker-than-expected revenue growth of 10%.

While Amazon Web Services (AWS) continued to show strong performance with a 19% increase in sales, contributing $26.3 billion, this growth was not sufficient to offset a modest 7% rise in international revenue and a 9% gain in its domestic e-commerce sector. Recent optimism surrounding the stock should be noted and it can largely be attributed to the ongoing success of its AWS platform, which serves as a driver of the company’s overall profitability.

On October 22, The Fly reported that BMO Capital kept an Outperform rating and $230 price target on Amazon.com (NASDAQ:AMZN). The firm increased its forecast for Q3 AWS Cloud growth to 20% from 19%. Additionally, BMO has raised its FY24 earnings per share estimate for the company by 4 cents to $4.53 and its FY25 estimate by 3 cents to $5.30. The firm anticipates potential acceleration for the company, driven by the normalization of optimization efforts in the latter half of 2024 and the ongoing adoption of Bedrock.

However, BMO also cautions that the consumer trade-down effect is a significant variable for the second half of the year, noting a mixed outlook where strong back-to-school spending may be offset by declines in beauty, electronics, and home goods.

While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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