Amazon (AMZN) Feels Misunderstood, Says Jim Cramer

We recently published 10 Stocks On Jim Cramer’s Mind & His Thoughts On Enterprise AI.  Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks on Jim Cramer’s mind.

eCommerce and cloud computing giant Amazon.com, Inc. (NASDAQ:AMZN)’s shares are down by 2.9% over the past year and by 7.2% year-to-date. According to The Fly, Bernstein reduced the firm’s share price target to $265 from $300 and kept an Outperform rating on the shares. The coverage came after Amazon.com, Inc. (NASDAQ:AMZN)’s latest earnings report, with the firm’s capital expenditure playing a key role. Bernstein explained that while the technology company’s strong operating income and growth in its Amazon Web Services (AWS) business were impressive, they were insufficient to justify $200 billion in capital expenditure. Benchmark also reduced the price target. It lowered the target price to $275 from $295 and kept a Buy rating on the shares. Cramer discussed Amazon.com, Inc. (NASDAQ:AMZN)’s cash flow and sentiment surrounding data centers:

“Amazon went negative in the free cash flow and suddenly people say you know what, Amazon went from one of the greatest balance sheets in the world to back to where it used to be when it sold books, Carl.

“Well I think that, when you go back and forth with them, they do feel misunderstood. I like that, but that said, it’s a big position in my trust. . .I think that their notion of what they have to spend is going to end up being on the high side. But then when you start thinking about what you have to do, you read that piece in the Journal today about data center taking housing space. Data centers are public enemy number one, they don’t produce a lot of jobs, which I think is untrue. . .”

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Disclosure: None. This article is originally published at Insider Monkey.