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Wednesday, October 25, 2006

Cramer Slams Amazon.com

Cramer was discussing that Amazon.com (AMZN) saw its profit slip over 30% butthe stock gained over 10%. Cramer said that when you see this it makes it hard to understand, but he said it makes sense if you think like a Mad Man like Cramer. He said he has been a hater of Amazon for a long time. He said that so many were betting against it that they now HAVE to love the quarter. He thinks a lot of the pop is short covering because they had 14% of the float short. Cramer said the company didn't change the long-term picture, but they spooked the shorts because of the near-term. Cramer said if you owned it you can go to the cash register and ring it. But Cramer said he stands by his long-term prediction that it isn't good and he screamed "WE WILL BURY YOU!" He even said it is buying revenue and the company will go lower. Cramer thinks Amazon's management is focused elsewhere and even brought up Bezos building a spaceport. He said the expansion into every aspect of retail isn't working because it is just too big. It trades too expensive at twice its growth rate. He thinks he isn't wrong on Amazon, the longs just got lucky. He ended saying "If you ask me, you don't want to go near it."

AMZN traded up 12% to $37.68 in regulartrading, but it fell 0.8% to $37.38 after Cramer slapped it.

Jon C. Ogg
October 25, 2006
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