It seems that Jim Cramer is convinced that Amazon.com, Inc. (NASDAQ:AMZN) is a good stock to buy.
In a discussion on Mad Money on CNBC, the host tells his viewers that the latest quarterly report from the company founded and now being run by Jeff Bezos leads him to believe that investing in the company’s stock is only a matter of believing that the company can turn on the profit with a simple decision.
“This stock has been red-hot ever since it reported a week ago because the company finally told you how much money it has been making from its Amazon Web Services business and how much it was making from actually selling goods. We’ve never had that level of clarity before and those who have been looking for a reason to cheer for this stock have been banging on the drum ever since because of this. Does it make sense? Yes!” Cramer says.
“Until this quarter, there never seemed to be light at the end of the Amazon loss tunnel. But after looking at this Amazon Web Services division, you could easily argue that Amazon can turn on to profitability anytime it wants by simply spending less. That emboldens all the bulls to do some buying every time the stock goes down which is what they do,” Cramer explains.
The CNBC host also says that Amazon.com, Inc. (NASDAQ:AMZN), Netflix and Tesla are the three most beloved stocks at the moment or maybe even for all he has ever seen. These companies have captured the public’s imagination like no other companies have done in ages, he says.
Amazon.com, Inc. (NASDAQ:AMZN) reported last quarter that the trailing twelve months of the Amazon Web Services business is $5.2 billion with an operating margin of 16%. This side of the Amazon business grew 48% year-over-year, the company revealed in its most recent quarterly report.
Ken Griffin’s Citadel Investment Group owned about 11.16 million Amazon.com, Inc. (NASDAQ:AMZN) shares by the end 4Q2014. The firm increase its stake in the electronic commerce juggernaut by a massive 4,544% quarter over quarter by the end of the said quarter.
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