Jim Cramer on Amazon


Last quote by Jim Cramer on Amazon

TJX put on a clinic about what you can do to beat Amazon: experiential opportunities, treasure hunt environment, lower prices for branded goods than the online colossus can offer. I never mind when execs practice UPOD, under-promising and over-delivering. It matters. My take? TJX barely moved on its excellent quarter, which makes it a screaming buy. I think it actually returned many more points. Urban moved a great deal, but it's got room to run. And Target, with its 4.4 percent yield? It works fine for me, too, at least for now.feedback
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All quotes by Jim Cramer on Amazon

But the love for the product and the genius of the man behind it, [founder and CEO] Jeff Bezos, drove the stock to where it is today, one of the greatest runs of all time.feedback

But the second part? Whoa! It's almost impossible to tell how much money Tesla makes per car, if anything. Nor is it possible to define the future of the company. If everything goes right it could be the next Amazon, a tech company that sells cars, just as Amazon's a tech company that's in retail. If it doesn't, then the stock could flame out.feedback

I wish I had an answer for this conundrum. Maybe you just take some real 'Mad Money' and buy one of them: preferably Netflix or Amazon because they're far more proven than Tesla. No matter. The fact is that some stories flunk the near-term fundamentals even as they triumph over the long term. ... Two of these three have already done so. For all I can tell, the third will, too.feedback

Making things even more difficult, on the recent conference call, CEO Reed Hastings actually championed the notion that negative free cash flow, something I don't like, will be an indicator of enormous success. I just don't think that would pass the Lynch test.feedback

Given the 2017 numbers we should use, both the estimates and what's in the can, the stock's trading at 16 times earnings. That's before you back out the humongous cash hoard. It's dirt cheap, people.feedback

So, I decided to go back to see how FANG, my acronym for Facebook , Amazon , Netflix and Google, now Alphabet , was doing at that 15th anniversary when the piece was written, because I think it's an excellent illustration of why you shouldn't take these sirens of skepticism too seriously.feedback

What you need to know is that if you looked at the numbers alone two years ago, you would've missed that Amazon was developing this incredible cloud-based web services business. Hmm, what's 40 percent of Amazon worth right now? How about $395? That's right, the web services business alone is worth more than what the entire company was selling for a couple of years ago.feedback

I think those are low-ball numbers, too, but the point is that if you looked at the right metric two years ago, it would've been obvious that Facebook was much cheaper than it seemed. That's nothing like the Nasdaq peak in 2000.feedback

Now, much of this move has occurred during the swoon of Amazon's stock itself. I don't know if its rally can be sustained – the stock went up more than $8 bucks [on Wednesday] – but it's something worth watching, as the Seattle behemoth's been mighty quiet of late. Right now, though, we seem to be in an Amazon-free zone. I do not know how long it lasts, but for the moment, you have to believe that when the cat's away, the mice will, indeed, play.feedback

Still, with Ulta trading at 33 times earnings, you have to tread a little carefully and be ready for another reversal if Amazon squawks to some reporter, somewhere, in some paper about cosmetics, although the follow-through 4-[basis]-point rally today was certainly pleasing.feedback

Please leave some room for more stock on Monday, when the stock could start stabilizing. The bottom line here is that when we have a reversal day like today, the end-of-the-worlders grab the mic and they won't let go of it until the third day of the sell-off, when they say 'buy' all over again. Instead of taking them too seriously, though, you need to use this weakness as a buying opportunity, as long as you remember your first buy may not be your only buy.feedback

These all read as nothing has happened with Whole Foods – that Whole Foods wasn't bought by Amazon. All of these analysts better take into account that the world changed when Amazon bought Whole Foods. There hasn't been anyone who has been able to say, I'm Amazon proof.feedback

These are all new earnings per share boosters that give you more reason to buy the darned stock. Sears, its pathetic partner, doesn't have that much left, but it does have one of the best brand names in appliances. They haven't savaged that. Kenmore's still good. You put Kenmore together with Amazon, you throw in Alexa so you can scream at your washing machine all you want to turn on, and voila, you're off to the races.feedback

Now, I'm not saying these stocks can't go down – Alphabet and Netflix both declined [Thursday]. I'm saying that they just keep making news, generating actual events and products that are indeed additive to earnings. Raising-numbers FANG. As long as that continues to happen, these stocks can continue to go higher, and you shouldn't feel foolish for pulling the trigger because they seem to introduce needle movers every single day of the week.feedback

Okja was Netflix's final release of the second quarter and I think it's the film that put international sign-ups over the top of domestics. Right story, right publicity, fabulous knowledge of South Korean culture, all things that the conventional studios reject or just don't even know how to do.feedback

Just like with Costco, all of the analysts quickly defended Lowe's and Home Depot intraday, telling us not to worry. However, just like Costco, it doesn't matter. People sold the stocks anyway.feedback

Here's the bottom line: you can take your time and wait until this rotation runs its course, but you need to understand that the 'guilty until proven innocent' taint has been very difficult to shake if your company finds itself in Amazon's sights, which is why it's so difficult to own anything that tries to compete with them. However, if you stay away from retail, there's still plenty to like. And remember: retail's a very small part of the entire stock market.feedback

It sure looked like a buying opportunity given that Home Depot does well as long as long as the price of housing continues to climb, which it has, and there's increasing household formation, which there is. This is the stuff of nightmares to a company like Lowe's or Home Depot, as they derive 11 percent and 8 percent of their sales from appliances, respectively.feedback

When we talk about the major innovations of our time, that's it? Are you kidding me? Is it really that hard to push a button? [If] you get me someone to put the stuff in, that's different. My wife makes me do the laundry because it's a humbling experience to be in my house. It takes longer to say 'Alexa, start my dryer' than it does to push the button. It's a great press release.feedback

Since the re-christening, I've had not one, not two, but three patrons at Bar San Miguel, my Mexican place in Brooklyn, tell me they bought Nvidia after they heard me rename that mongrel for the red-hot semiconductor stock. They knew the story, not just the dog. One day, maybe they'll just know the dog and it'll be time to skedaddle. But when you can go toe-to-toe with random drinkers at a local tavern about a stock that you adore, that's a really good sign.feedback

This whole theory of mine has less to do with these particular stocks than with the fact that people are beginning to wake up to the idea that owning the stocks of companies they love after doing some homework – not just index funds, but in addition to them – can turn out to be very lucrative.feedback

This is just another Amazon story in some ways. It is just another company that has been 'Amazoned.feedback

IBM is really burdened by the old business. And the new business – they're up against these amazing companies. It takes so long to remake an organization when you're up against Amazon, when you're up against [Google-parent] Alphabet, when you're up against Microsoft. These are competitors the likes of which IBM has never seen before.feedback

Look, you just have to hope that you don't wake up in the morning and see Amazon has decided to get in your business.feedback

Ever since the Whole Foods deal, we've heard repeatedly that Amazon might buy any brick-and-mortar company that can help them dominate, including the likes of Macy's. That'd be an interesting situation: Amazon knocks down a stock with its own power and then gobbles up the stock underneath when it suits them.feedback

Best Buy's the rare retailer that people thought couldn't be Amazon-ed because the stuff you buy there actually requires help. But Amazon's putting together a unit, we've learned, that is set to be able to do exactly what Best Buy does, and pop! There goes the stock of what we thought to be a winner.feedback

Take the stock of Costco, which has been hammered relentlessly since the Amazon-Whole Foods tie-up, falling from $180 to $151. Yet even after this stunning decline, Costco's stock still sells at over 23 times earnings and it has many bulls who remain cheerleaders for the company.feedback

We need to hear every Fed and their talking endlessly. ... Officials say we're going from three hikes to four based on the employment number on Friday. Three hikes to four hikes means you can go into these bank quarters, which are reported on Friday, with a full head of steam.feedback

That is why the decision Amazon announced on its conference call to beef up spending freaked out so many investors, and that is why the stock dropped 5 percent today.feedback

Jeff Bezos doesn't want to cut off his nose to spite his face, or please Wall Street.feedback

You either have faith in Jeff Bezos or you don't. You either buy into his amazing success or you stick with something less volatile. For me though, this decline is simply one more buying opportunity in the long upward climbing road that Amazon has been traveling.feedback

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Quotes by Jim Cramer on Amazon

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