CNBC’s Jim Cramer on Friday provided investors with a list of e-commerce games he believes are worth buying, despite the team’s tough performance in 2022.
“There are still some e-commerce games that I’m willing to get behind here, games that really prioritize profit,” he said.
Here is his list:
E-commerce stocks skyrocketed during the height of the Covid pandemic, when at-home consumers shopped online instead of in-store. But as the economy reopens, consumers prioritize spending on travel and experiences over goods.
That change, coupled with a Federal Reserve rate hike, sent e-commerce stocks down from last year’s highs.
Cramer warned that while he believes the group’s struggles are temporary, it’s still too early to buy many names in the e-commerce space – including Amazon.
He says that one of his biggest concerns with 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 cut, “this is a company with more than a million employees – for them, this is the last straw,” Cramer said.
But Amazon stock will eventually bottom out, he said. “I think the business can eventually make a big comeback and there will come a time when stocks are buying very aggressively.”
Disclaimer: Cramer’s Charitable Trust owns shares of Amazon.
