Cramer's 'Mad Money' Recap: Down in Front

It needs to come down a lot more before it can be a buy, he said, adding that Amazon's earnings growth is decelerating, and it needs to be trading at half of where it is now.

Although some analysts might argue that Amazon sells things other than books, it hasn't really made headway in another area, Cramer said.

It is damaged goods and is failing to expand beyond books. The company is in an overpromise, under-deliver mode, and Cramer believes that people should stay away from it.

In fact, Cramer believes that Barnes & Noble, which is buying back stock hand over fist, may be too cheap here. Cramer predicted that the company is going to report a bad quarter. He advised people to wait until this happens and then buy some Barnes & Noble.

Satellites of Like

Unlike Amazon, there are stocks that do get cheaper as they go down, Cramer said. However, there are few analysts that understand which ones are good and which ones are not.

There are analysts that will keep telling people to buy stocks as they sink and to sell when they have bottomed.

A perfect example of this is AT&T (T), he said. Analysts loved this stock when it was in its $30s, $20s and in the teens, whereas Cramer said he despised it.

However, when the stock got down to $6, all the analysts turned on it. They decided to hate it after it had plummeted, he said. Meanwhile, AT&T was becoming more valuable compared with all the other companies in its sector as it went down.

AT&T was the perfect takeover target at $6, Cramer said.

Right now, in real time, the same thing is happening to XM Satellite Radio (XMSR). Cramer said he hated it while it was in the $30s, $20s and teens, but now it's at $11.60, and he believes that it's not just a buy, but a triple buy.

He said he knows for a fact that the stock has bottomed because CIBC analyst Jason Helfstein, who was telling people to buy XM Radio in its $30s, $20s and teens, has cut and run from the stock, at which point anybody who was in the stock on the advice of CIBC sold it.