Amazon Stock Fell After Earnings. Jim Cramer Says Buy Right Here
Amazon (AMZN) shares fell after Q3 earnings missed estimates, with revenue at $201.94B and EPS at $1.89. AWS revenue grew 39.3%, and operating margins hit a record 13.9%. Jim Cramer recommended buying, citing long-term potential. UBS raised its price target to $352. AMZN trades at 34x trailing earnings and 23x forward earnings.
How this was made
The 30-second read
Why it matters
Amazon's earnings miss triggered a modest intraday decline, but analysts raised the price target, indicating a split view between short‑term pressure and longer‑term upside.
Market read
Amazon's earnings are a key driver for the broader tech sector and market sentiment, with its stock movement influencing large‑cap indices.
What to watch
The impact of rising borrowing costs and memory‑chip supply volatility could further strain cash flow beyond what the earnings release highlights.
Background
The article summarizes Amazon's Q3 earnings release, including revenue, EPS, capex, free cash flow, and segment performance, and adds commentary from Jim Cramer and UBS price target adjustment.
Ticker impact
Amazon reported Q3 earnings that missed revenue and EPS estimates, causing the stock to drop from $253.82 to $229 intraday and close down 1.41% at $240.35.
likely near-term downside as investors price in higher capex and cash outflow, with potential rebound if AWS growth meets guidance.
The earnings miss and guidance below estimates are fresh primary data; the stock already fell on the news, indicating immediate pressure, while the positive AWS outlook may support a later recovery.
Market effects
Cloud services sector may see mixed sentiment as AWS growth is praised but higher capex raises cost concerns.
U.S. large‑cap tech index could face slight drag from Amazon's dip.
Amazon's size means its earnings miss can modestly affect global tech sentiment.
Counterpoint
Despite the short‑term sell‑off, the record operating margin and strong AWS backlog suggest a buying opportunity for patient investors.
Key entities
- companyAmazon.com, Inc.
E‑commerce and cloud services giant reporting Q3 results.
- personJim Cramer
CNBC host who advocated buying Amazon on the dip.
- institutionUBS
Investment bank that raised its price target on Amazon.
