Amazon's Diminished Free Cash Flow Makes It 'Difficult To Own:' Jim Cramer
Amazon's Diminished Free Cash Flow Makes It 'Difficult To Own:' Jim Cramer
Kaustubh BagalkoteSat, February 21, 2026 at 10:30 PM UTC
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Jim Cramer weighed in on Amazon.com Inc. (NASDAQ:AMZN) Wednesday morning before markets opened, posting on X: “Amazon is difficult to own because it has diminished free cash flow from debt… I say stay in it but i know it went from cheap to expensive for a lot of people after that last q…”
CNBC’s “Mad Money” host Cramer’s note comes as Amazon’s free cash flow has been on a steep decline through 2025 and into early 2026, driven largely by a surge in capital spending tied to artificial intelligence infrastructure and cloud expansion.
Amazon is difficult to own because it has diminished free cash flow from debt… I say stay in it but i know it went from cheap to expensive for a lot of people after that last q…
— Jim Cramer (@jimcramer) February 18, 2026
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A Dramatic Free Cash Flow Decline
Period
Free Cash Flow (TTM)
Year-Ago Comparison
Q1 2025
$25.9B
$50.1B
Q2 2025
$18.2B
$53.0B
Q3 2025
$14.8B
$47.7B
Q4 2025
$11.2B
$38.2B
Data Source: Quarterly Results
The $200 Billion Bet on AI
The cash flow contraction reflects Amazon’s decision to spend on AI infrastructure. The Seattle-based company plans to ramp capital expenditures to approximately $200 billion in 2026, a $70 billion increase year-over-year.
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Shift in the ‘Magnificent 7’ Dynamics
The commentary marks a shift in Cramer's stance. On Feb. 6, he said “the Mag 7 is no more,” though he vowed to defend Amazon during a selloff that saw shares trade near $197. While he continues to advocate for staying in Amazon, he recently labeled Alphabet Inc (NASDAQ:GOOGL) as “the prize” among the mega-cap tech cohort due to its own aggressive AI infrastructure plays.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Amazon.Com, highlighting its strengths and weaknesses compared to the broader market:
Value: Weak (Score: 58.94) — The stock is trading at a premium relative to its peers.
Quality: Strong (Score: 71.7) — Demonstrates robust financial health and profitability.
Momentum: Weak (Score: 14.69) — Stock is underperforming the broader market.
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This article Amazon's Diminished Free Cash Flow Makes It 'Difficult To Own:' Jim Cramer originally appeared on Benzinga.com
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