Cramer's Morning Take: Amazon 4/28/23

Jim Cramer (0:01)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

Now, the kind of school that people are angry about is Amazon. They spent the whole quarter, the whole time school talking about good things, and then they dropped the bomb that web services is continuing to decelerate, and frankly, the month of April is awful, all right? So, let me say, and I want to start with the, I don't want to be a leader. I think at $100, she ought to buy this. Now, let me give you a reason why. This company, first of all, had run up big. So, it's not like we're talking about a horrendous move at four, down, well, it's down $4 when it came down. Not a horrendous move. The stock has moved up a lot, as we were talking about a little bit.

The conference call, and when I talk with them offline, here's what I get. It's very important.

I have been very critical at the club level, you know, in our meetings. I've been very critical about the way that they have handled themselves, that they haven't taken the big chargers, that they haven't done what Zuckerberg did, that they haven't been efficient. They heard me and others complain. This was a quarter where they're beginning to be efficient, just beginning. There's many quarters ahead where they have to figure out what to do with Whole Foods. They've been closing some of these freestanding stores, okay? They are trying to look at what to do with Alexa. They are trying to cut their... They spent... The company spent a lot of time talking to me about logistics and how finally they're getting to logistics that I was so angry about.

Yep. For 2023, they said we'll be... CapEx will be lower than 22, partly because... That was so significant...

SPEAKER_2 (1:32)

.you have to invest less, investing less in fulfillment.

Jim Cramer (1:36)

And so, I mean, I guess... Well, they are confident, by the way, that the growth rate is going to... The slowing of the growth rate is going to bottom here. Right. But I would tell you that the reason why they're confident has to do with a book of business that they see that comes from generative AI. And I don't think people realize you need a huge amount of cloud space. In order to be able to do artificial intelligence to the scale you need.

But they have taken so much action in terms of cutting costs, I don't think people believe that gross margins are going to be amazing.

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SPEAKER_2 (2:24)

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Jim Cramer (3:06)

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