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Cramer unimpressed with upside of 'gauntlet' company Amazon

An employee collects boxes from a conveyor belt at the Amazon fulfillment center in Madrid, Spain.
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Jim Cramer said Friday Amazon was "the worst" out of the four major "gauntlet" companies that reported quarterly earnings this week.

Amazon beat its second-quarter earnings and revenue estimates Thursday. The online retailer's shares initially dipped after its announcement, before inflecting higher. Investors have been watching Amazon's profit, with the second quarter marking its fifth-straight period of profitability. The company's shares were up 1.5 percent to $764.18 midday Friday.

The other three "gauntlet" companies Cramer refers to are Apple, Facebook and Alphabet.

"I didn't think we'd get through the gauntlet unscathed," Cramer told CNBC's "Squawk on the Street." "I was not only totally wrong … I mean I thought one of them would screw up. I think the worst one was Amazon and that was pretty great."

Although Cramer said Amazon earnings were "pretty great," the company was the worst because its upside wasn't that large comparatively. He added the reason the quarter was good was because of Amazon's flywheel business model.

The flywheel is an economic engine that uses growth and massive scale to improve the customer experience through increased selection and decreased cost.

Amazon said Thursday in a conference call with investors it would be doubling its content spend year over year in the second half of 2016, tripling its Amazon Originals content.