Squawk on the Street Cramer's Morning Take: Amazon 8/27/25
Aug 27, 2025
Cramer shares his bullish outlook on Amazon, despite recent weakness. Insights reveal Morgan Stanley's prediction of a revenue growth rebound for AWS, surpassing 20% by 2026. The discussion dives into Amazon's strategic investments in data centers and in-house tech development to stay ahead of competitors. Additionally, there's analysis on how Amazon is navigating its competitive landscape, particularly after Azure's underperformance, with a positive market sentiment emerging.
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AWS Spending Signals Reacceleration
- Morgan Stanley's AWS deep dive suggests Amazon is increasing data center spending to support growth.
- That spending could let AWS revenue reaccelerate toward 20%+ in 2026 if capacity meets demand.
Spending Is A Strategic Defense
- Jim Cramer views higher Amazon spending as a positive sign and would raise his price target to $250 if growth reaccelerates.
- He interprets spending now as taking the risk of being overtaken by competitors off the table.
Amazon Builds Cheaper AI Hardware
- Amazon prefers building its own training hardware rather than relying on NVIDIA due to cost and price-performance needs.
- They aim for tailored, cost-effective solutions to meet large-scale AI training demand.