Cramer's Morning Take: Amazon 1/11/24

SPEAKER_1 (0:00)

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Jim Cramer (0:57)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

I have to tell you, this is one of those days, if I were on the trading desk like I used to, I would say, come on, I mean, how many days can we go up on the same information? On Nvidia doing well at CES, on Microsoft doing well with the co-pilot, on Amazon laying off people so go buy. Jeff, how many days can we go up on the same thing?

Jeff Marks (1:30)

Well, those are the stocks that have had just massive runs this week. A lot of them making new 52 week highs, Amazon, Nvidia today, Palo Alto.

But it's a fair question. I do think CPI also has a little bit to do with it. I was a little confused at first why the market was initially shrugging off the slightly hotter data.

But we're seeing a decline and certainly a decline we've kind of been prepping for.

Jim Cramer (1:54)

Right, now I'm so glad you mentioned what you said because I think that, just to pit a little bit the Coinbase into not just Bitcoin, but Ethereum and Saldana.

That was a sell on the news, okay? It finally gets approved and it hasn't happened yet. But there is a sense that everything could be sell on the news after this big run. And we've been prepping for that. But I also know that these companies are doing better than we thought. And that's been, it's just that you have a meta up 25 points and doing better than we thought.

Jeff Marks (2:28)

Yeah, I mean you have Amazon yesterday announcing some layoffs around Prime Video and MGM Studios and Twitch. And that's a good sign that they're remaining rigorous with their cost structure. Because this is obviously a margin improvement story.

But at the same time, Jim, you have bared upgrade sales for us. The stock was up 98% last year. So I do agree in that sense at a very late call here.

Jim Cramer (2:55)

Now, how many stocks look like this? Which is that we are now at that crucial level.

And I tell you that crucial level is not something I want to be at, simply because we're not overbought anymore. But I want new news and not just upgrades. And when I saw the news at Amazon that they are going to lay off some people in Prime Video, that does not say to me they suddenly got disciplined. What it says to me is that they're being smart business people, but it's not a reason to buy the stuff. They are, they've always been efficient. They've just been trying to figure out how to be as efficient as they can. So I, look, do I think Amazon's great? Absolutely. Do I have to buy Amazon every day if I'm a retail investor? No.

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SPEAKER_4 (3:57)

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