Cramer's Morning Take: Amazon 9/14/23

SPEAKER_1 (0:00)

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Jim Cramer (0:33)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting. There's a piece that came out this morning that explained, you came in this morning and you said to me, Amazon, the stock has been incredible.

This piece basically, this morning's standing piece that explained why it's been incredible. So in other words, the reason why the stock is down is what we found out is this is because we're starting to see margin expansion. So the piece is basically a ratification of why the stock's been going up as opposed to buy Amazon now. Very good piece.

SPEAKER_3 (1:06)

Yeah, so here was Amazon last quarter and the stock just got above that level yesterday to a new 52-week high. But the story today, Morgan Stanley names it a top pick.

A lot of it has to do with retail margins expansion, getting earnings up to perhaps even $5 in 2025 in an upside scenario. Gap earnings, I should point out. Gap earnings, so that's very important.

Jim Cramer (1:30)

And Amazon has been, I've been very critical of Amazon's cost structure.

SPEAKER_3 (1:36)

No more.

Jim Cramer (1:36)

If this piece is right, no more.

SPEAKER_3 (1:38)

Right, but we've been seeing a reduction in headcount. They're finally growing into that overbuild.

Fulfillment, this regionalization, that's helping bring down lower shipping and fulfillment costs. The note also talks about potentially lower content spending, which we'll see. I know they're definitely making a big push to increase content for Prime Video.

Jim Cramer (2:00)

Tonight is a NFL game, Eagles. That will be in Vikings. I also, it's funny.

I don't know how much you use Alexa.

SPEAKER_3 (2:09)

Not at all. The company. I've never owned one.

Jim Cramer (2:12)

Okay, so Alexa tells you when your packages arrive, Alexa can list if you want to, but the problem with Alexa is they've not been able to monetize it. It loses billions. If you ever saw them say, you know what? We're gonna scale down Alexa. You're gonna have to buy.

Hand over fist. Even though you think it makes so much money for them, it doesn't.

Start your day with my out look on the market every morning. Visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_4 (2:45)

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