CNBC’s Jim Cramer on Friday offered investors a list of e-commerce plays he believes are worth buying despite the conglomerate’s poor performance in 2022.
“There are still some e-commerce plays that I’d be willing to back here that have really prioritized profitability,” he said.
Here is their list:
E-commerce stocks soared during the peak of the Covid pandemic as at-home consumers shopped online rather than in stores. But when the economy reopened, consumers prioritized spending on travel and experiences over goods.
That change, along with the Federal Reserve’s interest rate hikes, sent e-commerce stocks plummeting from their highs last year.
Cramer cautioned that while he believes the conglomerate’s struggles are temporary, it’s still too early to buy many of the names in the e-commerce space — including Amazon,
He said that one of his biggest concerns with the company is that it needs to cut costs further. Amazon said earlier this month It is planning to lay off more than 18,000 employees.
While this may seem like a sizable cut, “this is a company with over a million employees — for them, it’s a drop in the bucket,” Cramer said.
But Amazon’s stock will eventually bottom out, he said. “I think the business can eventually make a huge comeback and there will come a point where there will be an outcry buy of the stock.”
Disclaimer: Cramer’s charitable trust owns shares of Amazon.
