Cramer: Amazon Can Hit $325
NEW YORK (TheStreet) --Debra Borchardt: Amazon (AMZN) was upgraded by Morgan Stanley (MS) , the stock is running. Jim, we talked about Amazon last week. I guess Morgan Stanley was listening to us because we were saying how much more the stock could do, and it continues to go higher. Is it running too far now? I mean they put a price of $325.
Jim Cramer: Look, I think Amazon is a stock that has kept everyone skeptical. The reason is because they don't really have...on a price turning multiple - it's okay. But when you decide that you want to take over a core business, which is the fulfillment for everybody else who's trying to do online only eBay (EBAY) is a competitor. Then you see why they've spent so much money building these warehouses everywhere. They're putting in fulfillment for not just themselves but for a lot of other companies. So, what this was a focus on, this deal was a focus on how they are the backbone for all internet shopping.
Now, we talked last week about how it looks like that they've really crushed the Nook with the Kindle. Also, Amazon Prime represents such a great value. There had been a thought that when sales taxes were to go up statewide in many states that that would hurt Amazon, apparently it hasn't. Amazon could be a beneficiary of a lot of the bad weather that we had in that people shopped and they didn't go to stores. There's so many ways to win here, Debra. I agree with the call. I think there's still momentum there.
Debra Borchardt: You think $325 is not an outlandish number?
Jim Cramer: No, I don't. Now, it's the only stock that I use without looking at the P/E multiple. I've done that because they're the only company I know where a dollar in will - I think, yield a lot more than a dollar. This nationwide build out of warehouses is so brilliant. They've also gotten a lot of state breaks to do it. Jeff Bezos is Sam Walton, he is the Sam Walton of our time and I'm in awe of him.
--Written by Debra Borchardt in New York.