Cramer's 'Mad Money' Recap: Amazon Rides the Shorts

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The only reason Amazon's (AMZN Quote) stock jumped higher Tuesday is because people were betting against it, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

"Yesterday Amazon reported that its profits slipped by 37%, and overnight the stock jumped up 10%," he said. "It's things like Amazon bouncing after an ugly quarter that makes the market so unfathomable to understand."

But it all really does make sense, Cramer said. People who hated Amazon were "forced to love it" because it had a better-than-expected quarter.

Amazon's bounce "was caused by short covering," he explained. "It went up because people were looking for a big miss."

Market players that were expecting it to miss its quarter again and were shorting the stock, got squeezed when Amazon didn't miss it, and thus they had to buy the stock, Cramer said.

"This means you got lucky," he said. "Long term, I stand by my Amazon position. I believe it will get buried."

While the company did guide up its revenue, it didn't guide up its fourth-quarter profit, Cramer went on to say. Revenue isn't the issue, he said, shrinking profits are more important here.

Amazon is a victim of its own growth and its management isn't focused on the company. It is "starved for growth," Cramer said. "It's trying to become the Internet's Wal-Mart (WMT Quote) and is just too big."

He believes it is still "way too expensive" and doesn't have any good ideas to expand.

Amazon bounced because too many people hated it, and it got lucky. But the long-term story for it doesn't look promising, he said. "People shouldn't go near it."