Focus On Amazon (AMZN)’s Retail Business As Well, Says Jim Cramer

Core Viewpoint - Amazon.com, Inc. (NASDAQ:AMZN) has experienced a modest share price increase of 5% over the past year, with varying target price adjustments from financial firms indicating mixed sentiment about its future performance [2]. Group 1: Share Price and Analyst Ratings - Cantor Fitzgerald reduced its price target for Amazon to $260 from $315 while maintaining an Overweight rating, citing potential synergies from AI as a positive factor for internet stocks [2]. - Jefferies raised its price target for Amazon to $300 from $275, keeping a Buy rating, emphasizing the strength of Amazon Web Services (AWS) despite weak performance in 2025 [2]. Group 2: Competitive Landscape - Jim Cramer highlighted the competitive threat posed by Walmart, suggesting that Amazon's market disappointment is linked to Walmart's strong e-commerce initiatives and widespread presence [2]. - Cramer noted that while AWS remains strong, investors should consider Walmart as a legitimate challenger in the retail space [2]. Group 3: Investment Perspective - There is a belief that while Amazon has long-term potential, some AI stocks may offer better returns with lower downside risk, indicating a cautious approach to premium valuations for Amazon [3].