NEW YORK (TheStreet) -- U.S. stocks are down sharply Wednesday morning, but thanks to a positive research report from analysts at R.W. Baird, shares of Amazon (AMZN) - Get Amazon.com, Inc. Report are flat on the session.
Baird raised its price target to $425 from $380 and backed its outperform rating on the country's largest Internet retailer, citing optimism over the Amazon Web Services cloud computing business.
TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said he liked the analyst's call on CNBC's "Mad Dash" segment, adding that investors are looking for a "breakout" in the company's Web Services businesses.
This is frustrating for investors who are short the stock, Cramer said. But there could be potential in the Web Services division down the road, which is giving long investors optimism that Amazon can indeed generate strong earnings in the future.
Amazon is also a beneficiary of the weather, he noted.
Shares of Amazon have performed well this year, up 24% in 2015. However, the stock is up just 5.6% in the past 12-months.
-- Written by Bret Kenwell
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.