Jim Cramer Recommends Buying Amazon Following Third Quarter Earnings Miss
Amazon (AMZN) shares experienced volatility following a third-quarter earnings report that missed both top- and bottom-line expectations. The miss was attributed to weaker retail sales and advertising revenue, partially due to the timing shift of Prime Day. Despite these headwinds and a significant negative free cash flow of $42.4 billion over the last 12 months driven by AI infrastructure investment, Jim Cramer views the price dip as a buying opportunity. Market sentiment remains cautious regarding high capital expenditures, but Amazon leadership expressed strong confidence in long-term returns. CEO Andy Jassy projected AWS growth to exceed 40% in both 2027 and 2028. Cramer argues that while speculative AI companies may struggle, hyperscalers like Amazon are positioned to prevail as the data center theme continues to drive long-term value.
Topics: AI infrastructure spending AWS growth capital expenditures earnings report revenue miss
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