We recently published a list of Jim Cramer Calls Market Decline ‘Man-Made’ and Breaks Down 15 Stocks. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other stocks that Jim Cramer discusses.
On Monday, April 7th, Jim Cramer opened the Mad Money episode with a message of calm in the midst of chaos. After nine straight lower openings and another bruising session for stocks, Cramer made it clear that while the pain is real. He acknowledged the likelihood of a recession but rejected the notion that we were on the brink of another global financial collapse, saying:
“Do we have a problem that’s systemic meaning there’s actual weakness in our a rot in our institutions that can’t easily be undone? Now my partner David Faber and I discussed this very point this morning and we agreed that we needed to take the financial crisis scenario off the table because our institutions are strong, and we don’t believe that the whole economic system is in jeopardy. We don’t believe that major banks will fail, we definitely don’t like this situation for heaven’s sake. It’s likely we’re headed for a recession because of the president’s ill-advised plans, but we’ll pull out of it one way or another. It’s not going to be the global financial crisis number two.”
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Rather than being caused by inflation, interest rates, or even earnings weakness, Cramer insisted the market’s decline was driven by leadership decisions. He called the downturn “man-made,” emphasizing that it could be reversed just as easily as it began, if the administration changed course:
“Then we get back to the approximate cause of the decline: it’s all man-made! Wall Street’s terrified by the tariffs but we have an arbitrary material president who can declare victory, roll these tariffs back with the stroke of [inaudible] and then where would we be? We would have bought nothing. And at some point, the White House won’t be able to tolerate a crashing stock market.”
What concerned Cramer most was the deeper agenda behind the tariffs. In his view, the administration wasn’t just trying to rebalance trade but to reverse decades of globalization, forcing companies to return manufacturing to U.S. soil — even if that meant permanent economic disruption.
“The job isn’t just to coerce China; it’s to cause US manufacturers to come back here. Away from Vietnam, that’s why Vietnam had that huge tariff. Those are two agenda items that not just one that’s important it means there’s no possible negotiation because that would encourage companies not to come back here. Sure, the tariffs could raise some revenue or promote domestic manufacturing, but they can’t reverse history, and Trump wants to reverse history. It’s a tall order – an ill-advised one – he wants to do it quickly.”
Finally, Cramer laid out the daunting checklist of what would need to happen for the current strategy to succeed:
“There are many things that have to go right for Trump to successfully reorder the global economy in order to bring back domestic manufacturing and bring China to its knees. First the high tariffs can’t cause a spike in inflation or else the Fed won’t be able to bail us out with rate cuts. Second, he has to negotiate new trade deals very quickly for congressional members who are supposed to control the tariffs wake up. The lower the market goes the more likely the Republicans in Congress actually throw the president’s agenda under the bus. Third, he has to do it without causing a big spike in unemployment. I think if he does get all three, he isn’t going to press his bet with these tariffs, instead, he’ll find some reason to declare victory and roll them back. which is why the market didn’t collapse today.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 7. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A customer entering an internet retail store, illustrating the convenience of online shopping.
Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
As part of his breakdown of the Magnificent 7 stocks, Jim Cramer described Amazon.com, Inc. (NASDAQ:AMZN) as one of the few remaining standouts. He argued that Amazon’s pricing power, scale, and diversified revenue streams make it well-positioned to handle rising tariffs and supply chain disruptions.
“Right on top of the list [of the magnificent 7] is Amazon. The main knock against Amazon is that the tariffs will crush their core e-commerce business. After all, most of this stuff is made overseas and it’s about to get a lot more expensive. But I think they become more of a consumer staples business like Walmart, because they sell so many necessities at the best prices. Plus, all retailers have to deal with the tariff problem. Question is who has the scale to lean on their suppliers and force them to eat the cost of the tariffs? Nobody has more bargaining power than Amazon. It has all the cards. […]
Keep in mind that this company has a lot going for it, from the sticky prime subscription business that engenders customer loyalty, to the Amazon web services business that has enough growth to offset any weakness in retail with excellent margins. Amazon currently trades at around 25 times this year’s earnings estimates; about half of its historical valuation. That makes it a steal frankly.”
Alphyn Capital Management stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2024 investor letter:
“Amazon continues to demonstrate how a massive balance sheet, combined with a relentless focus on customer satisfaction and first-principles thinking, can drive sustainable cash flow growth. Recent earnings highlight strong execution across multiple fronts. At its core, Amazon pursues what customers value most: faster, cheaper delivery. This quarter, 40 million users enjoyed free same-day shipping, reflecting management’s sizable investments in regional logistics. These moves have reduced service costs, supported margin expansion, and set the stage for continued improvements with further robotics integration.
Amazon has now achieved margin gains in its international operations, making that segment profitable. By emphasizing improvements on the “intake” side of the supply chain and leveraging regional logistics, the company is laying the groundwork for more efficiencies ahead. Meanwhile, Amazon’s advertising business saw $14.3 billion in revenue, up 19% year-over-year, a clear example of the company’s success in forging new, high-margin revenue streams. Amazon Web Services and AI-related offerings also grew 19%, pushing quarterly revenues near $30 billion. Management spent $75 billion in capex this year, mainly for AI infrastructure, which will increase to $90 billion next year. While those numbers look daunting, I have confidence in the company’s ability to balance aggressive growth with disciplined returns, given Amazon’s decades-long track record of smart capital allocation. Amazon has a ruthless focus on “what works,” for example, while shutting down its project (with JP Morgan and Berkshire) to change healthcare service proved too complex, it pivoted to high-velocity pharmacy deliveries, leveraging its logistics expertise.
Of course, AI is all the rage right now, and we will eventually find out how much of this is hype. For now, Amazon’s AI initiatives are already producing multibillion-dollar revenues and growing at triple the rate of AWS when it was at a similar stage.”
Overall, AMZN ranks 11th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
