I Have “Total Faith” In Amazon.com (AMZN) CEO, Says Jim Cramer

We recently published 9 Stocks Jim Cramer Talked About. Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks that Jim Cramer talked about.

Amazon.com, Inc. (NASDAQ:AMZN)’s shares are down by 9.8% over the past year and by 7% year-to-date. DA Davidson cut the stock’s rating to Neutral from Buy and the share price target to $175 from $300 in February. The financial firm outlined that Amazon.com, Inc. (NASDAQ:AMZN)’s cloud computing division, Amazon Web Services, was facing tight competition from rivals Microsoft and Alphabet. DA Davidson pointed out that the AWS growth, while in the double-digit percentages, nevertheless lacked that of its peers by a wide margin. Scotiabank also cut Amazon.com, Inc. (NASDAQ:AMZN)’s share price target in February. The firm reduced the target price to $275 from $300 and kept a Sector Outperform rating on the stock. Like DA Davidson, AWS was also on the bank’s mind as it pointed out that it would have to readjust estimates linked to the cloud business growth. Unsurprisingly, after Amazon.com, Inc. (NASDAQ:AMZN)’s earnings, AWS was also on Cramer’s mind as he deep dived into the stock:

“Well the custom chips was a good discussion because they didn’t necessarily, they didn’t think that they threw NVIDIA under the bus, but, some Marvell chip that they’re using and it’s cheaper. And they do say that the big gating factor in profit is how much they have to pay and that’s a slap at NVIDIA. They may not think so. Look I think the problem is this, the cash flow is not there to do this. So then you go back to the old days, where they had to borrow a lot of money to do what they do. And I just don’t know how much they’re going to totally borrow. I mean, look David, when I spoke to them after, the way I feel about is, do we really have to do this? And they say you’re looking at it wrong, we make money the moment we turn it on. And then I say, well how do you know you’re able to do that? And they say, well listen, if we’re not able to do it, then we won’t spend the money. So in other words, they’re not oblivious to what Wall Street thinks. I basically said, guys, I want to defend you. And they weren’t like, well you can’t, it’s not our time, they’re just saying, it’s going to work, you just have to figure out how long you’re willing to wait.

“Look, I have total faith, Andy Jassy knows how to do this, so I believe and I am not bolting. But I want to buy Alphabet, because they are, they have this, this backlog, you know the performance obligations, they’re catching up, it’s huge. I was surprised, Alphabet’s on fire, for cloud, on fire, it’s terrific.