Jim Cramer Says Big Tech Is Back and Deep Dives Into These 8 Stocks

1. Amazon.com Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 339

Amazon.com Inc. (NASDAQ:AMZN) came up as part of the broader tech earnings conversation, with Cramer calling its Q1 results strong despite the stock trading lower on a conservative outlook. He broke down both the positive earnings surprise and the mixed reception to AWS’s performance. Here’s what he said:

“Then there’s Amazon, which is trading lower after hours because the company gave a conservative forecast for the second quarter, as they typically do. And who can blame them given the impossible-to-game tariff situation.

But looking at the first quarter results themselves, Amazon also reminded us why it’s one of the world’s best companies. Why you can’t bet against it.

Sales grew 9% year-over-year, topped expectations by over $600 million, led by double digit growth from Amazon Web Services, and the company’s increasingly important advertising business. The gross margins there are insane. Earnings per share, meanwhile, is up an incredible 62%. Beat the $1.36 consent assessment by 23 cents.

Now, one of the more quizzical things from the Amazon quarter were the results from the Amazon Web Services cloud computing business, which is such a fabulous business. Sales were up 17%, very good, but that was light- that was light of what we expected.

The operating margins on the other hand were fantastic. They reached nearly 40%, street was only looking for 35. And that’s why Amazon Web Services segment profit came in over $1 billion above expectations. Essentially, all the total company’s bottom line beat in the quarter. But you know, again, people found a little bit of what we call ‘hair on the story’.”

Here’s what Lakehouse Global Growth Fund said about Amazon.com Inc. (NASDAQ:AMZN) in its Q1 2025 investor letter:

“Amazon posted a solid quarterly result with ongoing cost discipline driving significant operating leverage across the business. Net sales grew 10% year-over-year (11% in constant currency terms) to $187.8 billion whilst operating income grew 61% to $21.2 billion, well ahead of guidance and analysts’ expectations. Growth within the core e-commerce business remained healthy as the company delivered a recordbreaking Black Friday and Cyber Monday holiday shopping event. For the past two years now, management has been laser focused on driving efficiencies across the retail operations and these efforts are continuing to pay off. Notably, retail margins for their international segment have now been positive for four straight quarters and currently sit at 3.0%, which is pretty remarkable considering that just over two years ago they sat at -8.9%.”

AMZN  is a stock Jim Cramer recently discussed. While we acknowledge the 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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