CNBC’s Jim Cramer on Friday offered investors a list of e-commerce plays he thinks are worth buying, despite the group’s rough performance in 2022.
“There are still some e-commerce plays I’m willing to get behind here, ones that have really prioritized profitability,” he said.
Here is his list:
- Free market
E-commerce stocks soared during the height of the Covid pandemic, as home shoppers bought online rather than in stores. But when the economy reopened, consumers prioritized spending on travel and experiences over goods.
That shift, along with the Federal Reserve’s rate hikes, caused e-commerce stocks to fall from their highs last year.
Cramer cautioned that while he believes the group’s struggles are temporary, 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 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 well over a million employees — for them, this is a drop in the bucket,” 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 point where the stock is a screaming buy.”
Disclaimer: Cramer’s Charitable Trust owns stock in Amazon.