Jim Cramer Says “Amazon’s a Company That Doesn’t Spend Unless It Needs To”

Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks Jim Cramer put under the spotlight. Cramer said that he trusts the company’s management, as he remarked:

“Or let’s say you wanted to buy Amazon, which is at the heart of the data center blast zone, and had been cautious in spending until the bond deal it just launched. To me, Amazon’s a company that doesn’t spend unless it needs to, unless it has demand. So I’m confident in this company. I trust [the] management. Amazon had a terrific quarter. Its stock shot up to $258 at the beginning of the month. Now, it’s way down back to $222. That’s, by the way, down $10 today.

They’re buying a high-quality company that just blew away the numbers, 36 points below its highs, because it raised money to build out something that it needs. In other words, I think this is a smart to, buy on weakness situation, not mindless dip buying. Again, though, you can’t buy all at once. You buy small and then you get bigger as it goes down… Stocks, by the way, do get cheaper if they’re good on the way down.”

christian-wiediger-rymh7EZPqRs-unsplash

Amazon.com, Inc. (NASDAQ:AMZN) sells consumer goods and digital content through online and physical stores, provides advertising and subscription services, operates Amazon Web Services for cloud computing, develops electronic devices, produces media content, and offers programs supporting third-party sellers and content creators.

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.