CNBC’s Jim Cramer said Monday that Amazon’s AI-powered retail business is a “no challenge” area heading into the long Thanksgiving shopping weekend. “I don’t think OpenAI will challenge Amazon’s retail,” Cramer said on “Squawk on the Street.” “When it comes to retail, we’re not going to stop them.” OpenAI’s ChatGPT is shaping the way consumers search for gift ideas, while Amazon’s built-in assistant Rufus gives the e-commerce giant an advantage. Rufus creates conversational shopping experiences that keep customers within Amazon’s ecosystem. This is a key differentiator as more consumers plan to use artificial intelligence tools for their holiday shopping, according to Morgan Stanley’s latest holiday shopping survey released last week. Cramer’s bullish statement is consistent with a new JPMorgan research report that once again named Amazon the internet’s best idea. Analysts said Amazon stands to dominate Cyber Week shopping and will gain even more ground this season, maintaining its roughly 46% share of U.S. e-commerce. They cite strong retail momentum, faster delivery, and the early success of Rufus, with the company estimating that personalization, advertising, and improvements in supply chain efficiency could increase annual sales by more than $10 billion. Kramer agrees with JPMorgan’s call. Using a tennis analogy, he said this is “a game, a set, a match for Amazon going into Thanksgiving.” Cyber Week is a massive online shopping period that follows Black Friday and the day after Thanksgiving, the unofficial start of the holiday shopping season. Amazon is a top holding in the Kramers Charitable Trust, a portfolio used by the CNBC Investment Club. AMZN YTD Mountain AMZN stock price performance year-to-date. To be sure, Amazon stock has been underperforming lately, giving up gains after the company late Oct. 30 announced a strong third quarter featuring a rebound in Amazon Web Services (AWS) growth. Shares rose more than 14% in the two sessions following the news, hitting a record high of $254 at the close on Nov. 3. The stock had recouped most of its gains, trading at $225 per share. However, JPMorgan believes the rebound since Q3 results is attractive given the company’s “strong retail momentum” and AI-driven shopping advantage. Analysts reiterated their Buy rating on the stock and price target of $305.
