CNBC’s Jim Cramer on Friday gave 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 that I’d like to get behind here, the ones that really prioritized profitability,” he said.
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Here is his list:
E-commerce stocks skyrocketed during the height of the Covid pandemic, as consumers at home made purchases online rather than in-store. But when the economy reopened, consumers prioritized spending on travel and experiences over goods.
That shift, along with higher interest rates at the Federal Reserve, has pulled e-commerce stocks off last year’s highs.
Cramer cautioned that while he believes the group’s suffering is temporary, it’s still too soon to buy into many of the names in e-commerce — including Amazon.
He said one of his biggest concerns with the company is that it needs to cut more costs. Amazon he said earlier this month It plans to lay off more than 18,000 employees.
While that may seem like a big cut, “This is a company with more than a million employees — for them, that’s a drop in the bucket,” Cramer said.
But he said Amazon stock will eventually decline. “I think the business can eventually make a great return and there will come a point where the stock is an outrageous buy.”
Disclaimer: The Cramer’s Charitable Trust owns stock in Amazon.
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