Jim Cramer Says Tariff Pain Isn’t Over Yet And Reviews These 9 Stocks

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

Number of Hedge Fund Holders: 339

Amazon.com, Inc. (NASDAQ:AMZN) came up in the context of companies with scale and pricing power. Jim Cramer discussed how Amazon may be willing to let its private label products go out of stock rather than absorb costs. Here’s what he said:

“Now, in Amazon’s case, I think they can say, hey guys, why don’t you just send the empty ships to U.S.? And they’re saying, listen, we’ve got other countries that want our stuff, but do they? Do they have other countries? We take everything from China. That’s over. Will the Europeans buy their stuff? […] I think we’re going to hear the Amazons and the Walmarts saying, you know what, we’d rather be out of stock. We’ll be out of stock on Amazon Basics. We don’t care.”

Here’s what Jim Cramer had to say about Amazon.com Inc. (NASDAQ:AMZN) the day before during his Mad Money program:

“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.”