Jim Cramer of TheStreet told "Mad Money" Research Director Nicole Urken the online retailer has been a pretty controversial stock for quite some time. Many fundamental investors continue to attack the valuation, suggesting that the price is not justified.
However, Cramer refers to Amazon as a "cult stock," which essentially excludes it from the normal valuations and boundaries by which most stocks are measured.
Even though eBay (EBAY), which sold off after reporting earnings last week, is a competitor to Amazon, investors shouldn't expect the same thing to happen."eBay shot themselves in the foot," he said, because the company talked about too many negatives, such as currency headwinds and European woes. Instead, Amazon only gives investors the bare bones, telling investors what they need to know and harping on the future and building out infrastructure. Cramer also added that people buy Amazon stock because they use the service. However, this is different from stocks such as Apple (AAPL), which has product constraints and a lot of competition. Cramer's charitable trust, Action Alerts Plus, has positions in EBAY and AAPL. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell