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. Follow @BretKenwell
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