With scandals and pseudo-scandals swirling at Facebook, Tesla and Amazon, CNBC’s Jim Cramer wanted to inspect each household company to gauge the potential negative impacts.
“With all three names rebounding nicely today along with the rest of the market, … I think we need to conduct a damage assessment,” the “Mad Money” host said on Tuesday. “Can these three titans keep bouncing or should you be afraid that they’re going to get clobbered all over again?”
Since Axios published a story titled “Trump Hates Amazon, Not Facebook,” Amazon has been the target of a firestorm launched from President Trump’s Twitter account.
Trump has railed against the e-commerce giant for its tax treatment and what he considers to be an unfair deal with the U.S. Post Office, but most market-watchers assume his frustration stems from his hatred of the Washington Post, which is owned by Amazon CEO Jeff Bezos.
“Even though the company’s facing intense criticism from the leader of the free world, I think the stock’s a buy, plain and simple,” Cramer argued. “At the end of the day, it’s hard to see how this will impact Amazon’s earnings.”
The “Mad Money” host reminded viewers that Amazon started collecting state and local sales taxes years ago, and that if the Post Office pushed back on their deal, Amazon could simply take its business to FedEx or UPS.
“Long story short, the punishment of Amazon’s stock doesn’t fit the non-existent crime,” he said. “This is not a real scandal. I think it’s a buy into any additional weakness.”
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