By
Godfrey Benjamin
April 23rd, 2024
As per Cramer’s analysis, the coronavirus outbreak has just accelerated the “work from home economy” and this could potentially benefit e-commerce giant Amazon (AMZN) in the long run.
Monday’s market crash has left the stocks pf even the top-tier companies tumbling down. Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), and other technology giants corrected to the tune of 4-5%. This has left many investors to question as to where does the bottom lie? However, CNBC analyst Jim Cramer thinks that this could be the right time to buy Amazon (AMZN) stock.
Speaking during the ‘Squawk on the Street’ show, Creamer said:
“I like Amazon right here. I think you start a position in Amazon absolutely.”
On the Monday market massacre, Amazon (AMZN) stock plunged over 5% or 100 odd points closing the day at 1800 levels. In just the last 20 days, Amazon (AMZN) stock has corrected over 15%. At press time, the AMZN stock is trading for a price of $1800 with a market cap of $896 billion.
Amazon (AMZN) to Benefit from Coronavirus Spread
Cramer believes that the rising cases of coronavirus could, in turn, be beneficial to the e-commerce behemoth from the economic point of view. Cramer said that the virus spread has forced companies to shut their offices and ask employees to work from home. Apple’s Tim Cook also asked his employees to work remotely for this week.
Besides, with more people staying at home, Cramer sees a potential shift in consumer behavior. Calling it as the “stay at home economy” Cramer says that this trend has just accelerated recently with the rising coronavirus cases.
“Stay-at-home is going to be a theme, but Amazon is going to get it to you,” said Cramer. Additionally, he also thinks that Amazon is going to benefit largely from the crashing oil markets. It means that tp buy Amazon stock right now when the situation on these markets is unstable it could be rather feasible. On Monday, the Brent crude price crashed to $32 per barrel after the OPEC+ allies failed to reach a consensus on supporting oil prices by cutting down production.
Monday saw one of the worst market falls after the 2008 financial crisis. Dow Jones plunged over 8% i.e. over 2000 points in a single day. Similarly, the S&P 500 and Nasdaq also collapsed over 7% the same day.
Over the last month, Dow Jones has corrected over 5000 odd points and similar is the case with other indices. Some analysts have already sounded the bugle of the next global economic recession. Currently, there’s no sure way of measuring when the COVID-19 virus spread will stop and where we could possibly find a bottom in the market.