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Here’s Why Jim Cramer Likes Amazon (AMZN) in 2026 Despite Unimpressive Performance

We just covered the Jim Cramer Stock Portfolio: Top 10 Stock Picks. Amazon.com, Inc. (NASDAQ:AMZN) ranks #1  (see  Jim Cramer’s top 5 stock picks in 2026 here).

Amazon.com, Inc. (NASDAQ:AMZN) is one of the top stocks in Jim Cramer’s latest portfolio. In October, Cramer explained why he plans to hold on to the e-commerce and Cloud giant’s stock despite its relative underperformance over the past four years. Cramer said that Amazon.com, Inc. (NASDAQ:AMZN) remains one of the high-quality businesses and he is bullish on the stock for the long term. He said AWS growth above 20% would reinforce his bull thesis. Last month, Amazon.com, Inc. (NASDAQ:AMZN)’s results showed AWS rose 24% year over year in Q4.

“You need stocks that you can work for over long, long periods of time,” Cramer said at the time. “I am a huge believer that Amazon stock will eventually catch up with my judgment.”

Cramer said he likes Amazon.com, Inc. (NASDAQ:AMZN)’s plan to lay off thousands of workers to save money and use AI to boost efficiency. He said he learned a lesson after selling Alphabet shares on concerns about AI and regulatory risks and missing the stock’s strong rally later. He added that he would not repeat the same mistake with Amazon.com, Inc. (NASDAQ:AMZN).

“The bottom line dumping Alphabet was a huge mistake, and I’m not going to make the same mistake a second time,” Cramer said. “A gigantic company run by brilliant people figures out a way to win.”

Ironvine Capital Partners stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2025 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN)is one of the most successful companies ever built, yet with all its accomplishments, we believe its businesses are only growing in importance with the passage of time. Over the last three decades the company has established its position as an advantaged infrastructure provider in two huge markets: e-commerce and cloud computing. These physical investments make it difficult for competitors to meaningfully encroach on Amazon’s turf, while providing opportunities to layer high margin complementary offerings on top of the foundation. These add-on services have made the network more valuable to customers, encouraging greater usage and generating incremental revenue that can be reinvested to strengthen the underlying infrastructure.

Amazon’s leading e-commerce marketplace connects a massive customer base on one side with millions of third-party sellers on the other, providing umatched breadth and depth at competitive prices with a nearly effortless checkout process. Its increasingly dense fulfillment network enables faster delivery speeds at a lower cost than others. Efficiency efforts in the U.S. produced a 10% reduction in average travel distance for a package, with 10% fewer touches compared to 2024. As most readers can attest, the net result leads consumers to choose Amazon more often. Alongside this marketplace the company has methodically built an advertising business that reaches over a billion people each month and generates nearly $40 billion in annualized revenue (up 30% in the most recent quarter). Overall, Amazon’s retail profitability has inflected materially faster than we anticipated four years ago, and we expect the company’s best days still lie ahead…” (Click here to read the full text).

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: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey on Google News.

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

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

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?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

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

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