Jim Cramer came to Amazon.com Inc’s (NASDAQ:AMZN) defense on Friday morning, even as he acknowledged a fundamental shift in the market’s relationship with mega-cap technology stocks.
Despite Amazon’s decline, major indices posted gains on Friday. The S&P 500 rose 0.96% to 6,863.56, while the Nasdaq-100 gained 0.88% to 24,764.51.
Cramer: ‘I Will Defend Amazon’
Speaking before Friday’s market open, Cramer, CNBC’s “Mad Money” host, said on X, “I will defend Amazon today. But it did trade to 197 yesterday as people recognize, like we did, that the Mag 7 is no more. But it is Google that is the prize.”
The “Magnificent 7” often shortened to “Mag 7” consists of seven high-performing, large-cap technology stocks: NVIDIA Corp (NASDAQ:NVDA), Microsoft Corp (NASDAQ:MSFT), Meta Platforms Inc (NASDAQ:META), Amazon, Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG), Apple Inc (NASDAQ:AAPL) and Tesla Inc (NASDAQ:TSLA).
Amazon’s $200 Billion Spending Plan Triggers Selloff
Amazon reported fourth-quarter net sales of $213.39 billion, beating Wall Street expectations of $211.30 billion. However, CEO Andy Jassy‘s announcement that the company expects to spend about $200 billion in capital expenditures in 2026 spooked investors.
On Thursday, Cramer acknowledged near-term pressure on the stock, stating on X: “I am not going to say Amazon’s overdone on the downside because i figure tomorrow’s pretty ugly. I am saying that there’s a reason for the spend that can be justified.”
Alphabet Emerges As Cramer’s Top Pick
While defending Amazon, Cramer singled out Alphabet as “the prize” among technology stocks. Google recently sparked a rally in semiconductor stocks after sharply raising its 2026 capital spending forecast to $175 billion to $185 billion, signaling strong demand for AI infrastructure.
Price Action: Alphabet shares were down 3.09% at $321.00 and Amazon.com shares were down 8.34% at $204.12 at the time of publication on Friday, according to Benzinga Pro data.
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