{"id":120142,"date":"2021-08-19T23:30:01","date_gmt":"2021-08-19T23:30:01","guid":{"rendered":"https:\/\/fin2me.com\/?p=120142"},"modified":"2021-08-19T23:30:01","modified_gmt":"2021-08-19T23:30:01","slug":"jim-cramer-says-buy-amazon-and-the-stocks-of-other-companies-with-strong-pricing-power","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/jim-cramer-says-buy-amazon-and-the-stocks-of-other-companies-with-strong-pricing-power\/","title":{"rendered":"Jim Cramer says buy Amazon and the stocks of other companies with strong pricing power"},"content":{"rendered":"
CNBC's Jim Cramer said Thursday he believes investors should buy shares of Amazon and other corporate giants that have pricing power of their consumers. <\/p>\n
The "Mad Money" host said the current inflationary environment, with numerous companies raising sticker prices, can help investors "separate the wheat from the chaff." <\/p>\n
"When you try to think of what's working in this market … I want you to ask yourself would you be insensitive to a price increase if the company put one through?" Cramer said. "The companies that can raise price without infuriating you? Go buy their stocks." <\/p>\n
Amazon is firmly on that list, Cramer said. The ecommerce behemoth's shares are actually down just over 2% year to date, but Cramer said many on Wall Street are misjudging Amazon's ability to flourish in a post-pandemic environment. <\/p>\n
"We'll eventually start remembering that we love Amazon because Prime is a steal," Cramer said. "I think the idea that Amazon Prime is a pandemic story is just wrong. It's a play on our instinct to get more for less. That's Amazon, and that's why it … is a buy." <\/p>\n
Microsoft is another company with loyalty among customers, particularly enterprises, Cramer said. Look no further than how its stock jumped 2% Thursday, setting a fresh record high, after announcing it would raise the prices of commercial subscriptions to its Office 365 bundle, which includes Word and Excel. <\/p>\n
Apple is a similar camp to Microsoft, Cramer said, although the iPhone maker is generally seen to have more consumer exposure. Still, the host said, "unlike a price increase in the supermarket \u2014 totally infuriating, right? \u2014 you don't hear much grousing about paying more for Apple. That's a big reason why the stock's so close to its 52-week high, and why I'm always telling you to own it, not trade it." <\/p>\n
The final two companies Cramer pointed out are wholesale retailer Costco and video streaming colossus Netflix. In the case of Costco, Cramer said shoppers recognize the cost of their store membership unlocks tons of value. <\/p>\n
"If you use this analysis, the analysis of a company that offers you an incredible bargain that you'd be willing to pay up for, or a bargain where you're not even aware of the price because it's such a steal," that takes investors to Netflix, Cramer said. <\/p>\n
Disclosure: Cramer's charitable trust owns shares of Apple, Amazon, Costco and Microsoft. <\/em><\/p>\n Questions for Cramer? Want to take a deep dive into Cramer's world? Hit him up! Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com<\/p>\n
Call Cramer: 1-800-743-CNBC<\/p>\n
Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram<\/p>\n