CNBC’s Jim Cramer on Friday offered investors a list of e-commerce plays he believes should be bought, despite the group’s rough performance in 2022.
“There are still some e-commerce plays that I’d like to see here, which really put the bottom line first,” he said.
Here is the list:
- Etsy
- Shopify
- Free market
- chewy
- Prologue
E-commerce stocks have soared during the Covid pandemic, as consumers at home shop online instead of in stores. But as the economy reopens, consumers prioritize spending on travel and experiences over goods.
That shift, along with the Federal Reserve’s interest rate hikes, sent e-commerce stocks down from last year’s highs.
Cramer cautioned that while he believes the group’s struggles are temporary, it’s too early to buy many names in the e-commerce space — including Amazon.
He said one of the biggest concerns with the company is the need to keep costs down. Amazon said earlier this month that it plans to cut 18,000 jobs.
While that may seem like a sizable chunk, “this is a company with over a million employees — for them, it’s a drop in the bucket,” Cramer said.
But Amazon’s stock will eventually decline, he said. “I think the business will eventually recover and there will be a point where stocks are buying screaming.”
Disclaimer: Cramer’s Charitable Trust owns Amazon stock.