Amazon (AMZN) is set to report its Q1 earnings on Thursday, with shares currently trading around $189. The stock has recovered from its month-long slump that saw it fall double digits, and is now down less than 2% in the past 30 days. Many analysts are bullish on the upcoming earnings, with some suggesting the stock may boom on Friday following a good report. One of these analysts, CNBC’s Jim Cramer, feels that Amazon stock is “too good to ignore” at current prices.
Cramer recently spoke on his CNBC show “Mad Money” about Amazon (AMZN), suggesting the stock has immense potential to break out of its low price. While tariffs have threatened the e-commerce business, Cramer believes that Amazon is resilient. Cramer speculated that Amazon (AMZN) would be able to perform well as it could sell staples at low costs to match mega-retailers like Walmart. Here are his latest comments:
“Amazon, the other day, I was reading a downgrade by Ray Jay,” Cramer said on a recent Mad Money episode. “Well, you know what the downgrade got a lot of people out of it.”
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Some analysts suggest that Amazon has the uncommon ability to withstand tariff threats and further economic decline for several reasons, making its stock very valuable. For starters, most of Amazon’s profit does come from North America, taking up the majority of income compared to other heavily tariffed parts of the world. Most notably, though, is how much Amazon has made from its AWS platform. Despite Amazon Web Services generating only 17% of revenue, it makes up over 50% of its operating profits. This is because the margins on this business are far superior to the two e-commerce divisions.
The upcoming earnings reports will indicate just how resilient Amazon was to economic uncertainty in Q1 2025. Should the stock boom entering this weekend, now may be the latest chance to bet on AMZN stock, which Cramer says is one of the best deals on the stock market.