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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuJim Cramer is making a stand on Amazon . Just after Friday’s opening bell, Jim said, “I think you buy Amazon here.” At the time, the stock was down more than 5% after a top- and bottom-line miss, leading the Nasdaq down more than 2%. About 30 minutes into trading, Wall Street seemed to agree with Jim. Amazon shares mounted a bit of a comeback, only down 3%. “It had a miss and a miss. That still matters,” Jim said. But when you dig into the conference call and look at the big picture, there’s more good to the Amazon story than what meets the eye. “I believe Amazon could be up [before day’s end],” Jim added on Friday’s Morning Meeting. There is no getting around the disappointment that Amazon delivered Wednesday evening: a rare double miss on earnings and revenue in the third quarter, driven by weaker-than-expected retail sales and advertising revenue. Cloud unit Amazon Web Services was great but hardly enough to save the day — not to mention $42.4 billion in negative free cash flow over the past 12 months, as the company continued to invest heavily in building out its AI infrastructure. Amazon maintained its $220 billion outlook for capital expenditures this year, but said on the call that it expects to spend “meaningfully more” next year. However, the encouraging aspect is that Amazon said its spending comes “with a clear line of sight to attractive financial returns.” In fact, CEO Andy Jassy said he expects AWS to deliver growth north of 40% in both 2027 and 2028, an unusually long-term forecast for the company that underscores his degree of confidence. “They think this is the moment,” Jim said, meaning Amazon thinks it is not a time to be conservative on AI spending and risk being left behind. He also referred to Jassy’s commentary at the conference, in which the CEO repeatedly emphasized that all the spending will pay off. Remember, it was these kinds of remarks from Jassy last quarter that really got the stock going. However, things have changed over the past three months. Investors are increasingly worried about the cost of the AI buildout and whether companies are stretching themselves beyond their financial means. “In truth, if you think that the data center theme is not going away, they, not Alphabet. Not Alphabet. These guys are the guys who are going to prevail,” Jim said. He’s been taking the other side of the AI-trade-is-over theme. He recognizes that there are headwinds ahead as some smaller neoclouds and other more speculative, AI-dependent companies fight for survival. But he has been saying that the hyperscalers have the best shot at weathering the coming storm. The storm also includes next week’s midterm elections, a chance to see whether the backlash to data centers has consequences at the voting booth. Amazon’s earnings call also made clear that the deceleration in advertising growth in the third quarter was partially due to Prime Day shifting into the second quarter in 2026, rather than the July-to-September quarter last year. Jassy mentioned a few other timing effects that skewed the reported result before offering this reassuring comment: “We expect year-over-year growth will return to the high teens in Q4.” There are a lot of moving parts around the Amazon story. But the company believes “that they are being given a golden opportunity,” Jim said. Now, the sellers of the stock Friday are giving long-term investors a golden opportunity of their own. (Jim Cramer’s Charitable Trust is long AMZN, GOOGL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.Read More