Jim Cramer Says 'Stop The Crying' As Amazon Stock Plunges 7% On Lower-Than-Expected AWS Guidance
Synopsis
In a post on X, Cramer said there were some “real misunderstood moments” during Amazon’s second-quarter earnings call on Thursday.
‘Mad Money’ host Jim Cramer on Friday said that Amazon Web Services is “fine” as Amazon.com Inc. (AMZN) stock plunged 7% during the opening trade.
In a post on social media platform X, Cramer said there were some “real misunderstood moments” during Amazon’s second-quarter earnings call on Thursday.
“I know Amazon will be down today... but there were some real misunderstood moments on the call. AWS is fine!!! Stop the crying,” Cramer said in the post.
Amazon’s shares opened 7% lower on Friday, after tumbling more than 8% during the pre-market trading session. Retail sentiment on Stocktwits was in the ‘extremely bullish’ territory at the time of writing.
Cramer’s comments come after Amazon reported its second-quarter (Q2) results on Thursday. The e-commerce giant posted earnings per share (EPS) of $1.68 on revenue of $167.7 billion, ahead of Wall Street’s expectations of an EPS of $1.33 on revenue of $162.2 billion, according to Stocktwits data.
However, what disappointed investors was the performance of AWS.
Amazon guided for operating income at AWS to be between $15.5 billion and $20.5 billion in Q3, while Wall Street expected $19.5 billion, according to a Yahoo Finance report.
Analysts at Cantor Fitzgerald pointed out that the “lag” in AWS growth compared to rivals is likely to remain a sticking point as artificial intelligence (AI) adoption gathers pace, according to The Fly.
RBC Capital analysts echoed the sentiment, saying that slower growth at AWS compared to rivals, missed margins, and management commentary did little to address investor concerns about a structural issue with Amazon’s cloud business in capitalizing on the growth opportunities presented by AI.
AMZN stock is flat year-to-date and up 19% over the past 12 months.
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