Jim Cramer Says "Maybe There's a Recognition That Amazon Web Services Is Not Going to Be Wiped Out by Anthropic"

Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks Jim Cramer discussed. Cramer discussed the stock’s decline post-earnings and its recent rally, as he said:

Then we saw strength in two other tech stocks that… many people had given up on. I was not tiring of them, but I was, they got me down: Amazon and NVIDIA. Ever since Amazon reported last quarter, and its stock fell from 242 down to 198 over a two-week period, the stock couldn’t find its footing. But not today. Amazon finally managed to actually break out of its negative range and burst higher, rallying $8 or almost 4%. Maybe there’s a recognition that Amazon Web Services is not going to be wiped out by Anthropic.

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. During the February 6 episode, Cramer discussed the company’s CapEx forecasts, as he stated:

This week, two members of the Mag Seven reported, Alphabet on Wednesday night, and Amazon last night. And with both of these, Wall Street focused on their massive CapEx forecast. That’s what they said… Amazon said, hold my beer and projected $200 billion in CapEx this year when Wall Street was only looking for $146.6 billion… As for Amazon, I believe in management’s ability to deliver, but you need a certain level of faith if you’re planning to own this one. That $200 billion CapEx number was shocking as the company… invested in everything from AI infrastructure to its retail operations to the low Earth orbit satellites that it can use to compete against Starlink. It totally overshadowed positives from the quarter, including strong growth from Amazon Web Services.

But away from that $200 billion CapEx burden, the stock also sold off because their operating income guidance for the current quarter came in substantially worse than expected. I think their investments will pay off eventually, but in the meantime, it’s obviously going to hurt. So again, do you trust Amazon to come out of the other side of this investment cycle in a better position with more earnings power? I do, which is why we own it for the CNBC Investing Club, but not everyone agrees.

So, I wasn’t shocked to see the stock down more than 5% today. As a matter of fact, I thought it’d be down more than that. I’m not going to pound the table for the stock of Amazon here. It’s too hard. I am saying that I’m willing to hold on to it because I trust CEO Andy Jassy to execute here. But I know that’s a leap of faith that’s too hard for many of you to take. It’s a big change to go from a solid growth company to one that may have to take on a lot of debt to grow faster. Not what many of you signed one for. Hard stock to own.