We recently published a list of Jim Cramer Says Big Tech is Back And Deep Dives Into These 8 Stocks. In this article, we are going to take a look at where Amazon.com Inc. (NASDAQ:AMZN) stands against other stocks that Jim Cramer discussed.
During the latest episode of Mad Money, which aired on the 1st of May, Jim Cramer dove straight into the recent tech earnings reports and celebrated the fact that some of the biggest names reported great earnings, saying:
“Sometimes you forget why you ever like something in the first place. Take the super stocks, the hyperscalers, the tech titans, I don’t care, whatever you want to call them. These stocks all got lumped together because of their size, their gigantic market caps that dwarf the rest of the market and then they lost their juice. […] We’re reminded of how the mega caps got so big to begin with. It’s their scale, their smarts, their moats, their balance sheets, and their sensational products.”
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He then emphasized how quickly the market turned around on the back of those great earnings reports:
“Couple weeks ago, the formerly magnificent seven felt impossible to own. But days like today remind you why you avoid these stocks at your own pearl. You got to have a couple of them. These companies are endowed with tens of billions of dollars. They’re like nation states. They don’t flinch at spending tens of billions to compete in artificial intelligence. They have the flexibility to pivot to what’s necessary. […] They’re run by seasoned hands who are incorruptible and bold and can course correct if they missed the mark the previous quarter. They are marvellous gems.”
Voicing his support for the big American tech companies, he said:
“This is why I take every chance to harangue public officials and urge them to stand up for these companies which because of their size have become honeypots for lawsuits by foreign governments who never stop hitting them up for money. But in the end, their optionality knows no bounds. Save tariffs. Something that they could not have seen coming and snuck up on them very fast. Snuck up on everyone. This has been the roughest stretch for these amazing companies that I can recall. “
Finally, he gave his nod of approval to these resilient companies, before beginning to analyze their recent earnings reports:
“But the bottom line, if we’re in for lean times, you know what? It’s quarters like these that remind me that these mega caps were built to prosper, built to make money in any kind of market, and they’re truly ready to excel when things turn south for everybody else, including Apples.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 1. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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%.”
Overall, AMZN ranks 1st on our list of stocks that Jim Cramer 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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Disclosure: None. This article is originally published at Insider Monkey.
