Jim Cramer’s Latest Game Plan: 20 Stocks to Watch

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

Number of Hedge Fund Holders: 308

Cramer has been praising Amazon.com, Inc. (NASDAQ:AMZN) for some time now. While he acknowledges some investors’ negative sentiments toward its last quarter, he is a proponent of holding on to the stock.

“Thursday can top Wednesday because that’s when Apple and Amazon report… Amazon’s hard. People truly disliked the last quarter and the stock was hammered mercilessly because the company somehow got linked with echoes of a weak consumer.

I don’t buy it. I think Amazon’s doing very well. Of course, a few weeks later from when they reported that so-called bad quarter, the stock was right back to where it was trading before it reported the quarter and then it went higher still. If you don’t own any again, I don’t want you to buy it ahead. You buy it after.”

Amazon (NASDAQ:AMZN) has established itself as a major player in the global technology landscape, focusing on online retail, advertising, and subscription services. The company’s performance remains strong, with significant contributions from its higher-margin sectors. Growth in Amazon Web Services (AWS) and the digital advertising division has played a significant role in improving profit margins, while improvements in e-commerce operations have also contributed positively to financial results.

In Q2, Amazon’s (NASDAQ:AMZN) AWS experienced a 19% year-over-year increase in revenue, reaching $26.3 billion. This segment, known for its cloud infrastructure services, continues to be a critical driver of the company’s overall profitability. Concurrently, the digital advertising business saw a rise of approximately 20%, bringing in about $9.5 billion.

While we acknowledge the potential of 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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