Investing

Jim Cramer Says This Stock Is A Can't Miss February Buy

Vandita Jadeja

Published: February 6, 2025 10:28 am

Author, hedge fund manager, and television personality Jim Cramer is a popular name in the investing sector. He is well known as the host of Mad Money on CNBC and often helps retail investors make the right investment choices. Many love the media personality, while many loathe him for his outspoken style. Naturally, Cramer will not get it right all the time but he does get it right several times. Jim Cramer has picked one e-commerce stock which is a hot buy for February. The e-commerce industry is growing at a rapid pace and this means investing in e-commerce stocks could benefit you. He names Amazon (NASDAQ:AMZN) as the best February buy and in this article, we discuss why he is bullish on the stock. 

Key Points in this article:

• Media personality Jim Cramer’s stock picks have generated impressive returns in the past. 
• While one cannot time the market, it is possible to time your move when buying a long-term stock.
• Amazon stock offers an ideal combination of e-commerce and AI.
• If you’re looking for some stocks with a huge upside potential, grab a free copy of our brand-new “The Next NVIDIA” report.

AI will drive growth 

Jim Cramer has made bold predictions about Amazon in the past and over 250 hedge funds hold AMZN stock. The world’s biggest e-commerce giant, Amazon truly deserves the attention it gets. It holds a massive e-commerce market and a sizeable presence across multiple industries including the cloud computing industry. Trading at $236, the stock has soared 39% in the past year and an impressive 132% in the past five years. Cramer has been bullish about the stock several times in the past and he hasn’t been wrong. In the past, he has called Amazon a “company for the ages”.

Amazon enjoys strong exposure to the e-commerce industry while having a high-margin cloud business which ensures steady growth even in difficult economic periods. Cramer considers Amazon a “real winner in the AI selloff”. A major growth driver for the company is Amazon Web Services (AWS) which saw a 19% revenue jump in the third quarter, placing it ahead of rivals. Companies are expanding their AI cloud spending and Amazon is set to benefit from the same. 

Stellar fundamentals 

In the third quarter, the net sales jumped 11% to $158.9 billion while the operating income soared to $17.4 billion. The net income increased to $15.3 billion, driven by the cloud computing and advertising segment. Amazon Web Services generated $27.4 billion in revenue while the advertising segment generated $14.3 billion. As the company continues to spend on capex, we could see AWS see higher growth in 2025. While its advertising segment has reported strong growth, it remains behind the industry stalwarts, which means there is space for growth. I consider the advertising segment a huge opportunity for Amazon over the next two years as spending on digital ads continues to increase.

For the fourth quarter, the management expects net sales to range from $181.5 billion to $188.5 billion and an operating income between $16 billion and $20 billion. Amazon crushed the market in 2024 and saw the stock soar higher after each earnings report. As the operating income increased, the stock moved higher. The company also reported stellar numbers during the Black Friday sales and while one may not consider e-commerce to be as attractive as other tech businesses, we must remember that Amazon is a global leader in this space. The company has seen growth in Amazon Prime memberships and with the e-commerce industry steadily expanding, Amazon will continue to remain an industry leader.

Wall Street loves Amazon stock 

If you are looking for e-commerce growth with strong AI potential, Amazon is the one to buy. It promises to deliver significant returns in a shorter time period. The company is set to report results this week and positive results could see the stock rally. 

Cathie Wood’s ARK Investment purchased 41.3K shares of Amazon last week after buying 7.5K shares earlier. Wedbush analyst has increased the price target of the stock to $280 from $260 with a buy rating. Scotiabank has raised the price target from $246 to $306 with a sector outperform rating.

Considering Amazon’s strong position in the e-commerce industry, cloud computing, and advertising, the company looks ready to deliver stellar fourth-quarter results, followed by strong guidelines for the year, making it a strong buy.