Jim Cramer Says Amazon "Never Should Have Underperformed to Begin With"

Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks Jim Cramer shared his takes on. Cramer highlighted the case of “mistaken identity” with the stock, as he remarked:

“Finally, there are stocks that never should have underperformed to begin with. Now, these were cases of what I call mistaken identity, chief among them is the stock of Amazon. This hyperscaler, one of the greatest companies in history, saw its stock pull up barely more than 5% in a year where the S&P was up 16%… When last Amazon reported, the stock soared from $222 to $254. Oh, it was a huge move. But it then proceeded to give up the entire gain and became a laggard again. The stock convinced people, the stock, okay, not the company, the stock’s decline convinced people there must be something terribly wrong with the business. But it sure wasn’t from its incredibly lucrative Amazon Web Services business, which is starting to reaccelerate. It wasn’t from its retail business, which was amazingly strong. The advertising business, total gravy, exceptional. So, what went wrong? I’ve looked, and I’ve looked, and I’ve looked… I re-read the conference call from the last quarter, saw all the contemporary research notes before I came out today, and I am telling you there was absolutely nothing wrong, nothing except perhaps an expectation on the part of some analysts that retail sales might be weak, which they weren’t. So now Amazon’s playing catch-up based on the mistaken identity that it was a loser. It never was.”

Amazon.com, Inc. (NASDAQ:AMZN) sells consumer goods and digital content through online and physical stores, provides advertising and subscription services, operates Amazon Web Services for cloud computing, develops electronic devices, produces media content, and offers programs supporting third-party sellers and content creators.

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Disclosure: None. This article is originally published at Insider Monkey.