CNBC’s Jim Cramer on Friday offered investors a list of e-commerce games he thinks are worth buying despite the group’s poor performance in 2022.
“There are still some e-commerce games I want to get behind here, the ones that really prioritized profitability,” he said.
Here is his list:
E-commerce stocks soared during the height of the Covid pandemic as consumers at home shopped online rather than in-store. But as the economy reopened, consumers prioritized spending on travel and experiences over goods.
That shift, coupled with the Federal Reserve’s rate hikes, sent e-commerce stocks tumbling off their highs last year.
Cramer warned that he believes the group’s troubles are temporary, but it’s 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 costs further. Amazon said earlier this month that it plans to lay off over 18,000 employees.
While that may seem like a sizeable cut, “this is a company with well over a million employees — for them, this is a drop in the ocean,” Cramer said.
But Amazon stock will eventually bottom, he said. “I think the business can make a big comeback at some point and there will come a point when the stock is a screaming buy.”
Disclaimer: Cramer’s Charitable Trust owns shares of Amazon.
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