Jim Cramer Recently Talked About These 5 Subscription Stocks

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

Number of Hedge Fund Holders: 339

Cramer mentioned Amazon.com, Inc. (NASDAQ:AMZN) during the episode when he was highlighting that companies that stand a chance to weather a slowdown are those that have terrific subscription-based business models.

“Once people get locked to a great service, they almost never cancel, whether it be Costco, Amazon Prime, Netflix.”

Amazon (NASDAQ:AMZN) has established itself as a dominant player in the global technology industry, with a broad array of services that encompass e-commerce, advertising, and subscription-based offerings. Burke Wealth Management stated the following regarding the company in its Q4 2024 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN): Whereas most of the discussion around Amazon focuses on trends in its AWS business, our focus has been on the progression of margins in its retail business. Happily, both units appear to be on the upswing which drove strong fourth quarter share price performance. In AWS, Q3 sales growth was a solid 19% and the run rate of the business is now $110B. Equally encouraging is that margins were 38%, marking the third consecutive quarter that AWS operating margins were in the 36%-38% range after spending the last two years in the 28% range. This margin gain is being driven by demand for higher value applications as well a benefit from extended life usage across its data center architecture. On the retail front, the margin story remained in full force with North American margins reaching 5.9% in the third quarter and International margins delivering positive results (+3.6%) for the third straight quarter after 10 straight quarters in negative territory. CEO Andy Jassey has pointed out that Amazon’s efforts to reconfigure its distribution network from a centralized to a regional network has yielded productivity gains and that he sees no reason why retail margins in North America can’t meet or exceed previous record levels. We think a consistent run towards the high-single-digit range is likely. International retail sustaining profitability would be an added bonus and this great white whale finally seems within our grasp as Amazon reaches critical mass across numerous large international markets.”