Don't Bet Farm on Amazon, Jim Cramer Says Stay Diversified

Katherine Ross

Amazon got a price target boost from two firms on Monday.

Amazon's price target was raised to $3,800 from $3,100 at Jeffries.

"Our analysis points to continued elevated top-line growth for e-commerce through June and into July, supporting our view that behavioral changes brought about by the pandemic has permanently increased online consumption," said analyst Brent Thill.

In a separate note, an analyst at Goldman Sachs raised Amazon's price target to $3,800 from $3,000.

"We expect more medium- and long-term outperformance to come from those companies with models that will benefit beyond the immediate crisis in the form of accelerated network effects, weakened competitive sets, and scale benefits to profitability," Goldman analyst Heath Terry wrote. 

"Given increased digital adoption over the last couple of months, the convenience offered by these platforms amid the pandemic, and a large number of retailer store closures & bankruptcies, the shift to online could remain elevated over the coming quarters," Terry wrote.

So, what does Jim Cramer think since Amazon is down 4.5% in the past five days?

Cramer said that Amazon is not a stock to own not trade yet, since he and his portfolio at Action Alerts PLUS trimmed its position recently.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here. 

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