Jim Cramer says Amazon is a buy on 2025 underperformance for this key reason
Jim Cramer says investors better act fast while Amazon stock is still on the sale rack.
TL;DR
- Jim Cramer recommends buying Amazon stock, influenced by BMO Capital Markets' positive outlook on AWS.
- Amazon has been the worst-performing 'Magnificent Seven' stock this year due to AWS growth concerns, though Q3 showed improvement.
- BMO raised its AWS fiscal 2026 first-quarter revenue growth forecast to 24% and sees potential for meaningful acceleration in customer cloud commitments.
- AWS is expected to grow 22.4% in fiscal Q1, following an estimated 21% increase in Q4.
- Amazon's investment in Anthropic and the availability of its Claude AI model on AWS are seen as key factors supporting AWS growth.
- BMO increased its Amazon price target to $303 with an outperform buy rating.
- The Investing Club has a $275 price target on Amazon and a buy-equivalent 1 rating.