Amazon is the stock market’s “secret weapon” By Benzinga

Lina Portman1 week ago

0 2 minutes read

Benzinga – by Adam Eckert, Benzinga Staff Writer.

As Amazon.com Inc. (NASDAQ:AMZN) stock continues to hit new highs, Jim Cramer calls it the “secret weapon” of the stock market.

What there is to know: On CNBC's “Squawk On The Street” Thursday, Cramer argued that Amazon stock is as important to the market as some of the big tech companies trading at more than $3 trillion.

“Amazon is the secret weapon in this stock market, not Nvidia, not Microsoft,” Cramer said on the show, saying Amazon always finds a way to get ahead of the competition.

New reports this week suggest that Amazon is preparing to launch a Temu-like discount section that will offer direct shipping from China. Amazon reportedly told Chinese sellers that it will begin accepting merchant signups over the summer, as it prepares to begin shipping discounted products in the fall.

Temu and Shien have managed to capture a large portion of the heavily discounted consumer goods market, but Cramer believes Amazon's response will benefit the e-commerce giant immensely.

The problem with Amazon's Chinese competitors is that they don't provide a shipping date when a customer places an order. Amazon, by contrast, keeps its customers informed throughout the process and is often able to deliver products the same day, Cramer said.

Amazon has a history of disrupting various industries, and Cramer expects the company to do the same in the AI space.

“They haven't even figured out how best to talk yet. They go. They have Claude, but they don't really own him,” Cramer

“I’m so impressed. They can own sports if they want to, they can own retail… they want to own health care, they want to own pharmaceuticals. Their precision in how they do things is remarkable. The way they handle their finances is incredible.

Cramer noted that Amazon used to receive a lot of attention and praise when its founder and executive chairman Jeff Bezos was at the helm, but he suggested Amazon has been underestimated since its CEO departure Andy Jassy took over.

“He’s just not like Bezos. Bezos was in the forefront. Jassy doesn’t want to draw attention to himself. He really doesn’t,” Cramer said.

Cramer suggested that momentum in Amazon stock could continue in the near term with Prime Day on the horizon. Amazon's 10th Prime Day event is set to kick off on July 16, giving members access to millions of exclusive savings opportunities.

“I happen to love Amazon…there are 140 million people who love Amazon,” Cramer said.

Check this out: