5 Stocks on Jim Cramer’s Radar Like Microsoft, Apple and a Wave of Takeovers

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

Amazon.com, Inc. (NASDAQ:AMZN) was among the stocks on Jim Cramer’s Mad Money radar as he taught investors how to profit from the upcoming wave of takeovers. Cramer noted why the stock “could be punished,” as he commented:

Second worst performer, Amazon, off 12% from June. My Trust owns Microsoft; it owns this Amazon. This is a tough one because the company’s doing so much right, but they’re not getting credit for their advertising business or the Prime offerings. Wall Street only seems to care right now about Amazon Web Services, which is actually doing much better than expected, but it isn’t pleasing buyers.

Nobody seems to have any interest in what could be a potentially $50 billion semiconductor business that’s under the same roof. Investors are worried here. Yes, they are. They are worried. Why? Because they want free cash flow. Amazon used to have it. They need to start making money with AI next year, no matter what, or else. Because otherwise you can’t justify the extreme capital expenditures. We need to see a bountiful return, or the declines will continue, and the stock could be punished.

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.