Cramer's Morning Take: Amazon 8/2/24

Jim Cramer (0:02)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. By the way, can I just say that of the stocks that I look at right now, if I just joined us, I would buy some Amazon later in the afternoon. I think later in the afternoon, I don't see the market necessarily gonna rally. And I like Amazon, and I spent a lot of time talking with the company last night, and I feel that it's being misunderstood. Amazon Web Services is doing very well. Yes, there is a retail component, obviously, but I think it's overdone. By looking at the forward guidance, you're making a big mistake, because that forward guidance is done, and very rarely comes about.

SPEAKER_2 (0:42)

It's hard to predict sales of a company of that size, and profitability, when there's just so many different variables. To your point about AWS, revenue growth did accelerate.

Jim Cramer (0:52)

Margins were 45%. I had a horrible fight with their CFO when Amazon Web Services looked like it was going to go below 10%.

SPEAKER_2 (1:02)

To nine, yeah.

Jim Cramer (1:03)

And he said, we're going to hold the line. And I said, give me a break. I don't like the guy very much. He's a Steeler fan, I'm obviously the Eagle fan. And I feel very strongly that this company is in such great hands that you have to buy some stock here. 160, I would be a buyer, as they said.

SPEAKER_2 (1:17)

They continue to lower the cost to serve, which is important to profitability. Now, they did talk about there's trade down happening and maybe some sales.

Jim Cramer (1:23)

Right, substitution.

SPEAKER_2 (1:24)

Some sales of some products may be not as strong as they would be in a robust economy.

Jim Cramer (1:28)

But electronics, they said, was strong. So I challenge that. It is some TVs, but it's PCs.

SPEAKER_2 (1:33)

Can you imagine?

Jim Cramer (1:34)

PCs are doing well, which is such a shame for Intel, but very good for AMD.

SPEAKER_2 (1:39)

Sure, AMD. I mean, that's another one we said, if we weren't restricted today, we would be buyers. Stock is down. Now, even from when they reported some good results, they did raise the MI300 guide, PC sales, talked a nice story there for 25

Jim Cramer (1:52)

This is a very good buy right here, people, because when you go in the Intel conference call, what you will hear is a company that's really under tremendous stress. So if you're a Dell or an HP, you can pivot and just do all you want with advanced background, and they'll make it for you. So there's, and make Intel your second source. And I think that's going to happen. Join the CNBC Investing Club with Jim Cramer to catch my member-exclusive morning minis every day at 10:20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_3 (2:30)

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