Jim Cramer Recommended Amazon (AMZN) As A Long Term Stock In January 2025

Amazon.com Inc. (NASDAQ:AMZN) is one of the Jim Cramer’s Hottest AI Stock Picks. eCommerce and cloud computing giant Amazon.com Inc. (NASDAQ:AMZN)’s shares are up by a modest 8% over the past year. Cramer discussed the firm on the episode of Mad Money aired on January 16th. Since then, Amazon.com Inc. (NASDAQ:AMZN)’s shares are down by 6.3%. According to media reports, a slowdown in the firm’s cloud computing business and higher AI capital expenditures are responsible for some of the movement. For instance, the stock dipped by 5% in February after the firm revealed that it could spend as much as $200 billion in capital expenditure in 2026. The announcement led DA Davidson to downgrade Amazon.com Inc. (NASDAQ:AMZN)’s shares to Neutral from Buy as it commented that the firm’s struggles with the AWS cloud computing business were making it invest heavily through capital expenditures in order to “catch up.” In August 2025, the stock had dipped by 8% in after-market trading following the firm’s second quarter earnings. Some notable metrics from the results were an 18% AWS revenue growth rate, which was lower than rivals’ figures, and an estimated $118 billion capital expenditure in the fiscal year. In his comments, Cramer had cautioned against looking at Amazon.com Inc. (NASDAQ:AMZN) on a quarterly basis:

“Amazon, I’ll tell you, this is a multi-year move. We’re not to look at it on a quarter-to-quarter basis. I think it’ll be higher long term. I’ve been behind it now for 20 years. I’m not changing my view.”

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.

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