"Mad Money host Jim Cramer doesn't yet appear ready to give up on shares of Amazon ( NASDAQ:AMZN), even after lagging most of its peers in the Magnificent Seven basket. Undoubtedly, where others see a slower-growing hyperscaler with AI capabilities that are dragging, others might see an opportunity. After rising just over 5% in the past year, it's getting pretty easy to give up on the e-commerce titan, especially as hotter momentum plays in big tech look to hit the ground running in 2026."
"In any case, I do think Cramer is right on the money to stick with Amazon after a year of market-trailing returns. Perhaps it's an even better buy after dragging its feet through 2025, while some of its rivals, such as Alphabet ( NASDAQ:GOOG), went on to clock in big gains while ascending in the market cap rankings. Of course, there are unique challenges for Amazon to tackle as the AI revolution faces more adoption and perhaps better monetization prospects in the new year."
Amazon underperformed many Magnificent Seven peers in the past year, rising just over 5%, while rivals like Alphabet posted stronger gains. Jim Cramer maintains a bullish stance and sees opportunity in the lag. Amazon's strengths include dominance in retail and cloud services and new AI agents that could bolster enterprise positioning. The stock trades at about 32 times trailing P/E, presenting a lower-cost way to bet on AI relative to some peers. The company faces challenges around AI adoption and monetization, but its valuation and core businesses support a potential medium- to long-term recovery.
Read at 24/7 Wall St.
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