NEW YORK (TheStreet) -- Shares of Amazon.com (AMZN) - Get Report were plunging nearly 5% in Friday morning trading after the e-commerce giant reported 2016 third-quarter profit significantly below analysts' estimates.
After yesterday's market close, the Seattle-based company posted earnings of 52 cents per diluted share, while analysts were looking for 78 cents a share.
Investors who are selling a typically strong stock on one earnings miss don't see the big picture, TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.
"It's rather amazing to me that everyone's stunned that periodically they do this," he noted.
People who are selling today either want to "ring the register," haven't read the earnings conference call or don't know how Amazon thinks, Cramer claimed.
He explained that Amazon functions as a private company that has a stock. The company has to spend money to be able to deliver products within one or two days.
CEO Jeff Bezos is in large part a distributor of capital, Cramer contended.
"He's basically saying, wow, this opportunity is so great, let's throw some money at it," Cramer said. "We know how to throw money at it, and when it happens, we make money."
Even when an investment isn't a home run, the strikeouts are nonetheless worthwhile, Cramer added.
"Everyone who has bet against [Bezos] has been wrong," he said.
Cramer urged investors to buy shares on Monday when the selling fades.
(Amazon.com is held in the Growth Seeker portfolio. See all of the holdings with a free trial.)
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
Amazon.com's strengths such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, expanding profit margins and good cash flow from operations outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: AMZN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.