Cramer: Amazon will be a 'buy' on Monday despite today's sell-off
Amazon (NASDAQ: AMZN)'s stock will be a "buy" on Monday even after the e-commerce company's disappointing quarter, according to CNBC's Jim Cramer on Friday.
On Thursday, Amazon reported third-quarter earnings well below analysts' estimates. Amazon's shares fell in extended trading immediately after the announcement.
The e-commerce giant disappointed investors after it said spending on warehouses and video production would drag on profits in the holiday quarter. Chief Financial Officer Brian Olsavsky said the spending was a "step-up" compared to what the company did previously. Amazon said it expects fourth-quarter sales in the range of $42 billion and 45.5 billion.
Cramer said investors must recognize that, periodically, companies are bound to drop a "bomb."
"It is just rather amazing to me that everyone's stunned that periodically they do this, and then they sell and you end up missing the big picture," Cramer said on " Squawk on the Street ." "I think this is, [on] Monday, a 'buy.'"
He later continued: "There have been very few situations where a stock is down $40 in premarket and every single research piece is a defense. So, you think, who's selling? ... Someone who didn't read the conference call or doesn't know the way that they think. But this is what happens."
Amazon's stock was trading down nearly 5 percent in midmorning trade Friday. The stock is up more than 15 percent year to date.
—CNBC's Christine Wang and Reuters contributed to this report.
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