As soon as Jim Cramer heard the dreaded words "cuts forecast" from Amazon on Thursday, he knew the stock would get clobbered.
When a company announces worse-than-expected numbers and then cuts the forecast, that is just what happens, Cramer said.
Amazon's shares fell more than 5 percent in after-hours trading on Thursday after it reported third-quarter earnings per share of 52 cents, while analysts expected 78-cents a share. Revenue came in at $32.71 billion versus $32.69 billion expected, according to Thomson Reuters consensus estimate.
On the flipside, Alphabet reported sharply better-than-expected numbers, and the stock went up in after-hours trading.
There was another category of earnings that caused stocks to jump, and Cramer found it quite peculiar — the category of "not as bad as we thought."