Curious why Jim Cramer's Action Alerts Plus Portfolio has such a large holding in Amazon (AMZN) ? 

"We believe [our position is] justified given the company's revenue diversity, track record of operational execution and increasingly deep, competitive moats," Cramer said.

The Pillpack acquisition by Amazon "will ultimately result in an additional revenue stream that is more staple-like in nature than the others and benefit from Amazon's significant logistical capabilities."

The other "pillars," as Cramer refers to them, are Whole Foods, Amazon Prime, hardware sales and the $15 an hour minimum wage boost that has been enacted by Jeff Bezos, CEO.

However, another strong suit for Amazon is Amazon Web Services, which helps to promote digitization. "Digitization has only just begun for most areas of the economy and your first move after you digitize is usually to onboard to the Amazon Cloud or AWS."

Cramer has heavily discussed the so-called Cloud Kings and FANG. In an interview with Katherine Ross, Cramer broke down what the fourth industrial revolution is and how it pertains to the Cloud Kings. 

The cloud is an ever-expanding sector of technology.

With Amazon set to report earnings after the bell, you'll need the latest analysis. Check out more on the Real Money stock of the day here

Amazon is a holding in Jim Cramer's Action Alerts Plus portfolio. Want to know before AAP buys or sells Amazon? Subscribe here

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