Jim Cramer on Amazon: “I Think This One’s Just Consolidating”

Amazon.com, Inc. (NASDAQ:AMZN) was among the stocks Jim Cramer highlighted, as he discussed the massive AI infrastructure buildout. Cramer believes the company’s recent quarter was “very solid,” as he said:

Now, next up, Amazon. Very good numbers, even if the stock didn’t get any love. The stock was volatile in after hours trading and ultimately gained less than 1% today. In the end, I thought it was a very solid quarter, 17% revenue growth, 75% earnings per share growth, the latter being much, much better than expected, even if it included a large pre-tax gain from Amazon’s early investment in Anthropic.

Still, when you look at the operating income, that was up 30%, also well above expectations, the stock should have been up more. But you know, it ran into the quarter. Amazon’s retail business was strong. Advertising business boomed, up 24%. Now, Amazon Web Services, this ended up being the star of the quarter, up 28%, its best growth in almost four years. That’s a huge increase on a $129 billion division of Amazon’s. Their custom chip business now has a $20 billion annual revenue rate. That’s going to go much higher.

So what’s the problem here? Amazon’s guidance for the current quarter was more mixed, good revenue, but merely in line operating income. I think the stock would’ve gotten hit even harder if Amazon had raised its full-year capital expenditures forecast. Hey, for what it’s worth, I thought that CEO Andy Jassy was the most thoughtful explainer of why that spending will pay off. These data center investments are very profitable for Amazon. I think the stock goes higher. I was surprised that it didn’t go more high, but remember that’s that parabolic move that I tell you about. Parabolic moves do not continue. They consolidate, or they go down. I think this one’s just consolidating.

Amazon.com, Inc. (NASDAQ:AMZN) sells consumer goods and digital content through online and physical stores, provides advertising and subscription services, operates Amazon Web Services for cloud computing, develops electronic devices, produces media content, and offers programs supporting third-party sellers and content creators.

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