First on Cramer’s power ranking was, almost inevitably, the stock of Amazon, which is owned by his charitable trust.
“How could the retail Death Star be anything else?” the “Mad Money” host said, referencing his Star-Wars-themed nickname for the e-commerce giant. “Funnily enough, you’re actually getting a rare buying opportunity here.”
Shares of Amazon down from their recent highs, hovering around the $1,870 level. Cramer pointed out that historically, every sell-off in the company’s stock has been a buying opportunity.
Better yet, for four consecutive quarters, Amazon has delivered earnings well above Wall Street expectations, with its most recent report showing earnings per share that were twice as large as consensus estimates.
“The bull case here was always that Amazon could turn on the profitability spigot whenever they wanted to, it just made more sense for the company to continue to spend the money it needs for growth opportunities. Well, that strategy worked,” Cramer said. “I think the recent correction … [is] a gift.”