Jim Kramer recently spoke about Amazon (AMZN) about his CNBC show “Mad Money.” Amazon has consistently positioned itself among the world’s most promising companies. Of the mega cap stock, it is the most important seven out of the epic 7. However, there is a reason to think that navigating the increasing uncertainty this year has a better opportunity.
Amazon has once again impressed its cloud business with its latest quarter results. AWS revenues rose 16.9% year-on-year in the most recent quarter, while operating profit increased 22.6%. AWS is currently above its annual run rate of $100 billion. Conversely, Amazon didn’t give the most encouraging guidance for the next quarter in the eyes of Wall Street and didn’t worry about investors. However, Cramer said about the recent “Mad Money” episode that Amazon could still surpass the expected figures.
“Wal Street doesn’t seem to be far from spending on AI infrastructure, despite not liking the guidance we got from Amazon.com tonight,” Cramer said Thursday. Cramer is certainly right, as Amazon’s AI development and investment has proven fruitful. Amazon’s AI use has had a huge benefit to AWS. This is the most profitable effort. The company has recently invested $8 billion in AI startup humanity and is seeking to drive the use of technology. Next, revenues for the cloud computing business reached $117 in the first quarter, with operating profit margins reaching 39%.
Furthermore, Amazon’s ad revenue is also very impressive. It boasts a fourth quarter revenue of $17 billion. It may not be big in Amazon’s financial grand scheme, but it is growing twice as fast as an e-commerce platform. AMZN shares are fine by the end of 2025, as their growth rate and AW dominates with surge in demand.
Currently, Amazon (AMZN) is below the simple 200-day moving average in the middle of the 52-week range. It could go either direction over the next few months, but analysts like Jim Kramer are bullish on inventory. According to analysts at CNN, out of the 73 people surveyed, 95% suggest buying stocks. These analysts cite investment firm price forecasts, company basics, and solid revenues as a catalyst for AMZN stocks.
