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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. . .”

While we acknowledge the risk and potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMZN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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