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Around $390, should you buy Amazon?

(Click for video linked to a searchable transcript of this Mad Money segment)

With Amazon printing $399 before sliding back from its all-time high, should you buy or run in the other direction?

By conventional metrics the stock is way ahead of itself. The P/E ratio is around 1,388.

But does that mean the slide from $399 is a meaningful reversal. Probably not.

Largely Jim Cramer thinks Amazon got caught up in a wave of selling that swept across the Street into the close.

Nothing more.

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The catalysts that drove the stock higher in the first place, appear to remain intact..

For example, "Amazon is expanding fast," Cramer noted. And the expansion could pay off in spades. That hasn't changed.

Also, "Amazon has some real mystery to it," Cramer added. It's possible in the future the company posts a quarter like nothing the Street's ever seen.

In addition, the company is committed to selling quality merchandise at the cheapest prices for the least amount of hassle. In this environment, that's exactly the kind of business model that should thrive.

Of course, none of these catalysts warrant the P/E. However, some companies trade at premiums that don't make conventional sense.

Amazon is one of them.

"Goldman Sachs raised its price target from $400 to $450," Cramer added. They're looking for upside.

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And that brings us back to the ultimate question, around $390 should you buy Amazon?

Amazon loses money every quarter, Cramer reminded. And yet it has the potential to dominate e-commerce the world over.

So, should you buy -- or sell? That's entirely up to you.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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