CNBC’s Jim Cramer on Friday offered investors a list of e-commerce plays he thinks are worth buying despite the group’s poor performance in 2022.
“There are still some e-commerce plays that I’m willing to bet on here, ones that really prioritize profitability,” he said.
Here is his list:
E-commerce stocks soared during the height of the Covid pandemic as at-home consumers shopped online rather than in-store. But as the economy reopened, consumers prioritized spending on travel and experiences over goods.
That change, along with the Federal Reserve’s rate hikes, sent e-commerce stocks down from their highs last year.
Cramer cautioned that while he believed the group’s struggles were temporary, it was still too early to buy many of the names in the e-commerce space — including Amazon.
He said one of his biggest concerns about the company is that it needs to cut more costs. Amazon said earlier this month that it plans to lay off more than 18,000 employees.
While that may seem like a significant reduction, “this is a company with over a million employees — it’s a drop in the bucket for them,” Cramer said.
But Amazon’s stock will eventually bottom out, he said. “I think the business could eventually make a big comeback and there will come a time when the stock will be screamingly bought.”
Disclaimer: Cramer’s Charitable Trust owns Amazon stock.
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