Amazon’s Capex Surge Hampers Free Cash Flow, Cramer Says Stock Is Hard to Own
Jim Cramer warned that Amazon’s free cash flow declined year-over-year as capital expenditures surged for AWS infrastructure, reducing cash reserves and making the stock 'difficult to own.' He highlighted that heavy cloud and logistics spending outpaced operating cash flow growth.
1. Cramer Highlights Cash Flow Decline
Jim Cramer emphasized that Amazon’s free cash flow has fallen year-over-year, citing recent financials showing capital expenditures outpacing operating cash flow due to investments in AWS and logistics.
2. Impact of Elevated Capex
He noted that elevated spending on cloud infrastructure and fulfillment centers is tightening cash reserves, potentially constraining future share repurchases and dividends, leading him to view the stock as difficult to own.
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