Jim Cramer Recommends Alphabet and Amazon
On a recent episode of CNBC’s Mad Money, Jim Cramer advised investors to buy shares of Alphabet (NASDAQ: GOOGL) around $344 and Amazon (NASDAQ: AMZN) around $239, both of which have since declined. Cramer highlighted that Wall Street analysts generally view these trillion-dollar companies as undervalued. As of now, Alphabet is priced at approximately $299, with a median analyst target of $385, indicating a potential upside of 29%. Amazon is currently at about $217, with analysts estimating a target of $285, reflecting a possible 31% increase.
Alphabet has seen steady growth in its cloud computing revenue for three consecutive quarters, while Amazon has reported its highest cloud revenue growth in 13 quarters at 24%. Both companies are leveraging artificial intelligence to enhance their operations and profitability, with Alphabet’s custom AI chips (TPUs) able to generate external revenue and Amazon’s cloud services infrastructure leading the market with a 41% share.
