We recently published a list of Jim Cramer Says Trump’s One Big, Beautiful Bill Is Pro Growth & Discusses These 12 Stocks. In this article, we are going to take a look at where Amazon.com, Inc. (NASDAQ:AMZN) stands against other stocks that Jim Cramer discusses.
Amazon.com, Inc. (NASDAQ:AMZN) is the largest eCommerce retailer in America and has a robust presence in the cloud computing business. The firm is also among the handful in the world that develops its artificial intelligence chips. These chips are called Trainium, and they have generated speculation about whether they could replace NVIDIA’s GPUs. However, Cramer doesn’t believe this will be the case. When his co-host raised the question, he simply remarked:
“Oh, the Trainium. they’ll take very single NVIDIA they can get.”
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Amazon.com, Inc. (NASDAQ:AMZN)’s shares jumped by 3% after its fiscal first-quarter earnings report. The CNBC host discussed the firm’s financial report in detail:
“Then there’s Amazon, which is trading lower after hours because the company gave a conservative forecast for the second quarter, as they typically do. And who can blame them given the impossible-to-game tariff situation.
But looking at the first quarter results themselves, Amazon also reminded us why it’s one of the world’s best companies. Why you can’t bet against it.
Sales grew 9% year-over-year, topped expectations by over $600 million, led by double digit growth from Amazon Web Services, and the company’s increasingly important advertising business. The gross margins there are insane. Earnings per share, meanwhile, is up an incredible 62%. Beat the $1.36 consent assessment by 23 cents.
Now, one of the more quizzical things from the Amazon quarter were the results from the Amazon Web Services cloud computing business, which is such a fabulous business. Sales were up 17%, very good, but that was light- that was light of what we expected.
The operating margins on the other hand were fantastic. They reached nearly 40%, street was only looking for 35. And that’s why Amazon Web Services segment profit came in over $1 billion above expectations. Essentially, all the total company’s bottom line beat in the quarter. But you know, again, people found a little bit of what we call ‘hair on the story’.”
Overall, AMZN ranks 1st on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of AMZN, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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