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Cramer Quick Take: I'd Take Amazon Over UPS

NEW YORK (TheStreet) -- Amazon.com (AMZN) recently announced that it would be hiring 5,000 employees. TheStreet's Jim Cramer and Debra Borchardt wondered if this would be good for the online retail giant.

The company, which posted a quarterly loss last week, plans to increase its total workforce by 25%, to 25,000 total employees, which could be a concern for some investors. According to Cramer, it doesn't matter.

Amazon is one of a few "cult stocks" that refuse to trade on earnings. Investors continue to buy these stocks based on future growth, he explained, and examples include Netflix (NFLX) and Tesla (TSLA).

Cramer said Amazon has to add more workers in order to expand its warehouse network in the United States, which is necessary to fulfill Amazon Prime orders. Prime orders have to be delivered in two days.

Cramer said he's a big believer in CEO Jeff Bezos, and that eventually the company will be focused on expanding internationally. While Amazon continues to lose money, investors can cheer about the continually strong revenue growth.

For these reasons, he said that he prefers Amazon to United Parcel Service (UPS), which is losing market share to Amazon.

-- Written by Bret Kenwell in Petoskey, Mich.

Stock quotes in this article: AMZN, UPS, NFLX, TSLA 
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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