Jim Cramer took to X Wednesday morning to share some uncomfortable truths about Amazon.com Inc. (AMZN). "Amazon is difficult to own because it has diminished free cash flow from debt," the CNBC "Mad Money" host wrote. "I say stay in it but i know it went from cheap to expensive for a lot of people after that last q..."
It's not hard to see why Cramer is conflicted. Amazon's free cash flow has been in freefall through 2025 and into early 2026, squeezed by an enormous wave of capital spending on artificial intelligence infrastructure and cloud expansion.
The Numbers Tell a Stark Story
Here's how the cash flow picture has deteriorated on a trailing twelve-month basis:
| Period | Free Cash Flow (TTM) | Year-Ago Comparison |
|---|
| Q1 2025 | $25.9B | $50.1B |
| Q2 2025 | $18.2B | $53.0B |
| Q3 2025 | $14.8B | $47.7B |
| Q4 2025 | $11.2B | $38.2B |
That's a collapse from over $50 billion to just $11.2 billion in twelve months. The culprit? Amazon is betting big on AI.
A $200 Billion Infrastructure Play
The Seattle tech giant plans to ramp capital expenditures to roughly $200 billion in 2026, representing a staggering $70 billion increase from the prior year. That's the price of staying competitive in the AI arms race, and it's showing up directly in the cash flow statement.
Cramer's Evolving View on Big Tech
This represents something of a shift for Cramer. Back on February 6, he declared "the Mag 7 is no more," though he vowed to defend Amazon when shares dropped near $197 during a broader selloff. He's sticking with that defense, but his enthusiasm has clearly moderated.
Meanwhile, he's recently dubbed Alphabet Inc (GOOGL) as "the prize" among mega-cap tech stocks, citing its own aggressive AI infrastructure investments. The implication is clear: not all AI spending strategies are created equal in Cramer's eyes.
What the Metrics Say
The fundamentals paint a mixed picture for Amazon:
- Value: Weak (Score: 58.94) — The stock trades at a premium compared to peers
- Quality: Strong (Score: 71.7) — Financial health and profitability remain solid
- Momentum: Weak (Score: 14.69) — Underperforming the broader market
AMZN Price Action: Amazon shares were up 1.33% at $203.82 at the time of publication Wednesday.
