Why Jim Cramer Still Backs Amazon (AMZN) as a Top AI Stock

Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Jim Cramer recently spoke on his CNBC show “Mad Money” about Amazon (AMZN), suggesting the stock has immense potential to break out. Amazon has consistently positioned itself among the most promising companies in the world. Amid mega-cap stocks, it is among the most important of the Magnificent 7. Yet, there are reasons to think that it has a better chance than most to navigate the increased uncertainty of this year.Amazon yet again impressed with its Cloud business in its latest quarterly results. AWS revenue jumped 16.9% year over year in the most recent quarter, while its operating income rose 22.6%. AWS has now surpassed a $100 billion annual run rate. On the flip side, Amazon didn’t give the most reassuring guidance for the next quarter in Wall Street’s eyes, worrying investors. However, Cramer notes on a recent “Mad Money” episode that Amazon still has the potential to outpace its expected numbers.“Even though Wall Street didn’t like the guidance we just got from Amazon.com tonight, it sure doesn’t seem like they’re backing away from AI infrastructure spending at all,” Cramer said on Thursday. Cramer is indeed right, as Amazon’s AI development and investments have proven fruitful. Amazon’s usage of AI has greatly benefited AWS, its most profitable endeavor. The firm recently invested $8 billion in AI startup Anthropic, seeking to help propel its usage of the tech. In turn, the cloud-computing business saw its revenue reach $117 in Q1, with an operating margin reaching 39%.Furthermore, Amazon’s advertising revenue is quite impressive, too. It boasts a Q4 revenue figure of $17 billion. That may not be large in the grand scheme of Amazon’s financials, but it is growing at double the rate of its e-commerce platform. With that growth rate and AWS dominating alongside surging demand, AMZN stock should be just fine by the time 2025 comes to an end.Currently, Amazon (AMZN) is trading in the middle of its 52-week range and below its 200-day simple moving average. It has the potential to go in either direction over the next few months, but analysts like Jim Cramer are bullish on the stock. According to CNN’s analysts, out of 73 surveyed, 95% suggest buying the stock. These analysts cite investment firm price projections, the company’s fundamentals, and solid earnings as catalysts for AMZN stock.Source link