Focus On Amazon (AMZN)'s Retail Business As Well, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Talked About.  Amazon.com, Inc. (NASDAQ:AMZN) is one of the stocks on Jim Cramer talked about.

Amazon.com, Inc. (NASDAQ:AMZN)’s shares have gained a modest 5% over the past year. Cantor Fitzgerald started the year by slashing the share price target to $260 from $315 and keeping an Overweight rating on the shares. The financial firm pointed out that AI’s potential to generate synergies could lead to tailwinds for internet stocks. While Cantor cut the target, Jefferies raised it to $300 from $275 and kept a Buy rating. Jefferies outlined that despite weak performance by Amazon.com, Inc. (NASDAQ:AMZN)’s shares in 2025, the firm was in a strong position with its Amazon Web Services (AWS) cloud business. AWS, according to the financial firm, provides the software company with exposure to AI inference opportunities. However, according to Cramer, investors need to be mindful of Amazon.com, Inc. (NASDAQ:AMZN)’s retail business when analyzing the stock:

“Absolutely, it’s funny, just with the drones that Walmart has, where they’re ahead of Amazon. Look, I think Amazon’s disappointment in the market is directly related to Walmart. Which has come on very strong, has some very good ecom initiative where they can deliver to your home. Everybody’s close to a Walmart in the whole country. So I think that when you see Walmart up and you see Amazon down, don’t just presume that’s because Amazon Web Services may not be as strong. I think Amazon Web Services is strong, be thinking Walmart that Walmart is a legitimate challenger, they have a great balance sheet and they’re everywhere.”

While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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