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Jim Cramer Notes Amazon “Had a Terrific Quarter”

Amazon.com, Inc. (NASDAQ:AMZN) is one of the Magnificent Seven stocks Jim Cramer commented on. Cramer noted that the stock keeps declining because of the belief that AWS’s growth is slowing. He said:

“Fifth, Amazon. Well, Amazon shouldn’t be troubled. It had a terrific quarter, including fantastic retail sales, stunning advertising revenues, decent numbers from Amazon Web Services, AWS. The reason the stock got hit and keeps getting hit is there’s a perception, Amazon Web Services’ growth is slowing. It was flat from the previous quarter, and that’s being viewed as a real weakness.

I’m hearing that Amazon may be market share donor to Microsoft and Alphabet in cloud computing, and they might stay that way until they stop trying to make do with their own chips and instead buy more, yes, of the ones from NVIDIA. I’m not sure this is a totally true narrative because I think AWS did fine. But I do hear about the resistance from young AI developers who are reluctant to use Amazon’s platform to develop their own products. I hope management comes on right here and explains more about this issue. Otherwise, I fear that this is an important position for my Charitable Trust is going to keep getting smoked. Help us, Amazon. I know, I’m greedy.”

Amazon (NASDAQ:AMZN) provides retail, subscription, and advertising services, along with devices like Kindle, Echo, and Fire TV. Additionally, the company offers cloud computing through AWS and supports third-party sellers and content creators across its platforms.

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.

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

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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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