Amazon can’t rest. “Amazon has been terrible,” CNBC’s Jim Cramer said on “Squawk on the Street,” making it the worst Magnificent Seven stock of the year. Amazon rose modestly on Monday, but has since retreated near its post-earnings lows in early August on concerns about Amazon Web Services’ cloud growth. Stock prices have fallen by more than 2% year on year. Kramer’s comments came in the wake of a major AWS outage on Monday that disrupted access to several major websites. This issue has largely been resolved and most affected sites are now back online. While the failure grabbed headlines, it also reminded investors of broader concerns about AWS and how Microsoft’s Azure and Alphabet’s Google Cloud have grown rapidly in recent years. In the most recent quarter, AWS revenue increased 17.5% year over year, trailing Azure’s 39% increase and Google Cloud’s 32% increase. This adds to the view that Amazon’s cloud dominance is declining. The company wants to change this perception, given that AWS remains a profit driver for its vast business. “I support Amazon Web Services,” Cramer said, adding that its growth should be “from 18%, 19% to 21%, 22%.” However, he acknowledged that Monday’s outage could derail that growth story. But Cramer said, “If Amazon’s stock rebounds sharply today (Monday), it could be a sign that the long and scary decline is coming to an end.” Amazon is a holding in the CNBC Investing Club portfolio. AMZN YTD Mountain Amazon YTD
