Amazon's spending binge and weaker margins on its AWS cloud computing business are making its stock undesirable analyst James Cakmak told CNBC on Friday.
"I don't think this is the time right now to get in because I still think that the expectations have not fully calibrated with the reality of the situation," the Monness, Crespi, Hardt & Co. equity analyst told "Squawk Box."
Though AWS has been touted as a profitable part of the business, its incremental margins were slashed in half year over year, Cakmak said. Paired with Amazon's hefty investments in content and logistics, that has eroded trust in the company's ability to turn a profit in the coming year, he said.
"Until we have more confidence in the profitability outlook, I don't think you can make that call [to buy]," Cakmak said.
Cakmak said he still likes Amazon's long-term prospects, and he praised its innovation.
"You've seen so much discipline and so much thoughtfulness in the pace of execution, the types of products that they're rolling out," he said. "I don't think you can discount Alexa with the Echo and building a platform around that."
"I love Amazon, love Prime, avid user," Cakmak continued. "But I can't recommend it at this price right now."
Earlier on "Squawk Box," Guggenheim analyst Robert Drbul made a case for buying Amazon, putting a $950 price target on the stock.
Amazon's share price was $813.48 on Friday morning, down 3 percent.