We recently published a list of 10 Large Cap Stocks Jim Cramer Can't Stop Talking About. In this article, we are going to take a look at where Amazon.com Inc. (NASDAQ:AMZN) stands against the other large cap stocks Jim Cramer can't stop talking about.
In a recent episode of Mad Money, Jim Cramer highlights a critical gap in the American education system, which often overlooks financial literacy despite its importance. While students may graduate with extensive knowledge in subjects like chemistry, history, and languages, they rarely receive practical education on managing personal finances. Cramer emphasizes that financial planning, retirement readiness, and investing are seldom covered, leaving many people uninformed about crucial money management skills.
Cramer's mission is to bridge this gap through the CNBC Investing Club, where he and the Charitable Trust provide practical financial guidance. He stresses the significance of retirement planning, noting that while 401(k) plans and Individual Retirement Accounts (IRAs) are key tools for saving, many people lack comprehensive understanding of their benefits and limitations.
Cramer points out that while contributing to a 401(k) is widely advised, it's not always the best strategy for everyone. Despite its tax advantages and the ability to defer taxes on contributions, 401(k) plans can have drawbacks, such as hidden fees that diminish returns.
He argues that understanding both the benefits and the shortcomings of these retirement accounts is essential for making informed financial decisions. Cramer encourages individuals to educate themselves about these investment options to ensure their retirement savings are managed effectively.
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A customer entering an internet retail store, illustrating the convenience of online shopping.
Jim Cramer shared his views on Amazon.com Inc. (NASDAQ:AMZN), explaining that he recently purchased more shares of the company because he felt the market was too critical of its last quarterly performance. Cramer believes Amazon.com Inc. (NASDAQ:AMZN) is a solid investment and expects it to continue performing well in the future.
Amazon.com Inc. (NASDAQ:AMZN)'s Q2 2024 earnings report reveals a strong recovery, with revenue reaching $134 billion, up 11% from the previous year, and net income soaring to $6.7 billion, up from $6.75 billion from the same quarter last year. This turnaround is largely driven by a 19% increase in revenue from Amazon Web Services (AWS), underscoring Amazon.com Inc. (NASDAQ:AMZN)'s dominant position in the cloud and AI markets. Amazon.com Inc. (NASDAQ:AMZN)'s investment in generative AI and warehouse automation supports its long-term growth prospects, especially in high-margin areas.
Although the retail segment faces some challenges due to cautious consumer spending, Amazon.com Inc. (NASDAQ:AMZN)'s strategic improvements in its delivery network and shopping experience are expected to enhance margins and increase market share. Analysts remain optimistic about Amazon.com Inc. (NASDAQ:AMZN)'s future, with expectations for continued growth in AWS and positive outlooks from major financial institutions like JPMorgan and Wedbush.
Overall AMZN ranks 1st on our list of the large cap stocks Jim Cramer can't stop talking about. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.