On Friday, CNBC’s Jim Cramer offered investors a list of e-commerce coins he thinks are worth buying, despite the group’s rough performance in 2022.
“There are still e-commerce games that I’m willing to support here, the ones that have really prioritized profitability,” he said.
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Here is his list:
- Free market
E-commerce stocks soared at the height of the Covid pandemic, as home consumers shopped online rather than in-store. But when the economy reopened, consumers prioritized spending on travel and experiences over goods.
That shift, along with interest rate hikes from the Federal Reserve, sent e-commerce stocks tumbling from their highs of last year.
Cramer warned that while he thinks the group’s difficulties are temporary, it’s still too early to buy many names in e-commerce, including Amazon.
He said one of his main concerns about the company was that it needed to cut costs further. Amazon announced earlier this month that it planned to lay off more than 18,000 employees.
While that might seem like a big cut, “this is a company that has over a million employees — to them, that’s a drop in the ocean,” Cramer said.
But Amazon shares will eventually bottom out, he said. “I think the company can eventually make a big comeback and there will come a time when the stock is a screaming buy.”
Disclaimer: Cramer’s Charitable Trust owns stock in Amazon.