There was a time when it looked like General Motors ( GM) was going down, said Jim Cramer on his "RealMoney" radio show Wednesday, adding that the company was dogged by the wrong cars, poor sales and sky-high health care benefits.

But now it's in the midst of a major turnaround that has legs, Cramer said.

Even though the automaker just reported a $3.2 billion loss, Cramer said that management has figured out answers. Plus, the company has a turnaround pro onboard in Jerry York who also rehabilitated IBM ( IBM).

First, York will fix the financials, Cramer said. Then he will tackle growth.

He added that GM's recent earnings loss was mostly about bookkeeping and that the good news has momentum. "Hold onto GM if you have it. Buy it if you don't," he said, because it's behaving like a mid-cap stock that is finally getting it right.

Amazon ( AMZN), on the other hand, is a $14 billion company with great sales, but it needs to spend a lot of money to run its business.

That was the essence of Amazon's latest earnings report, and the stock has been down precipitously ever since.

Even though the stock has been beaten up, he said that it's not a buying opportunity. Even though companies such as Borders ( BGP) and Barnes & Noble ( BKS) don't have Amazon's sales, they are not spending tons of money to maintain those sales levels.

Amazon is down, and Cramer said that investors were right to bail.

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