These are the top 3 takeaways from Cramer's interview with Amazon's Jassy

Published Thu, Dec 7 20233:55 PM EST

The chief executive of Amazon (AMZN) made it clear this week that the ecommerce giant is firing on all cylinders, giving us renewed confidence in the business as committed long-term investors. In a wide-ranging interview with Jim Cramer on Wednesday, CEO Andy Jassy touched on the health of the consumer, the strength of Amazon's cloud business, and growth opportunities in new business areas like consumables. Here are some of the takeaways from the interview. 1. Cautious consumers Jassy noted that while consumers are still spending, they're "more timid" with their transactions than they have been in the past, scaling back on discretionary purchases like electronics and looking for deep discounts on everyday items. He added that Amazon's discounts and bargains are central to the value proposition of the Amazon Prime subscription. The company's Prime Big Deal Days in October was the "most successful fall sale to date," Jassy said. 2. Growth in consumables Prime members also value Amazon's fast delivery times, enabled by an efficient fulfillment network according to Jassy. The company broke out its original national fulfillment network earlier this year into eight regional hubs in an effort to get items closer to end customers. This consolidation, Jassy explained, has helped lower transportation costs and travel distances, while speeding up delivery to customers. Making deliveries faster has contributed to an uptick in the purchases of consumables like food and household items. "When you can get items to people same day or next day at the latest, they end up considering you for a lot more purchases," Jassy said. And, as a result, it's "clear that they're gaining share from brick-and-mortar stores," Jim said Thursday. 3. Cloud strength Growth at Amazon's cloud unit, Amazon Web Services, is poised to reaccelerate after more than a year of sluggish growth, helped by generative artificial intelligence. In the company's most recent quarterly results , AWS posted 12% revenue growth year-over-year, at $26 billion. And Jassy told Jim that there is "a lot of growth in front of us." "I continue to be very bullish on AWS in 2024 and beyond" Jassy said. Looking ahead, Jassy estimates AWS can bring in tens-of-billions of dollars in revenue over the next several years as businesses move their applications from on-premise software to the cloud. AWS is a "juggernaut" and doing far better than many investors realize, Jim said Thursday. "This is where the money is," he added. (Jim Cramer's Charitable Trust is long AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Amazon CEO, Andy Jassy speaking with CNBC's Jim Cramer on Mad Money in Seattle, WA. on Dec. 6th, 2023.

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The chief executive of Amazon (AMZN) made it clear this week that the ecommerce giant is firing on all cylinders, giving us renewed confidence in the business as committed long-term investors.