The stock market continues to slide as coronavirus concerns persist, but shares of Amazon are looking like a buying opportunity, CNBC’s Jim Cramer said Monday.
“I like Amazon right here,” Cramer said on “Squawk on the Street.” “I think you start a position in Amazon absolutely.”
Amazon’s stock was down more than 2% on Monday and about 14% since Feb. 11, when it hit an all-time high of $2,185 per share.
Cramer’s comments came during a tumultuous day for financial markets around the world, particularly in the U.S. where trading was temporarily halted after the S&P 500 declined 7% shortly after the open.
Amazon’s sizable pullback has created an opening for investors because the e-commerce giant is actually well-suited to handle the economic change brought by coronavirus concerns, Cramer said.
He said the continued spread of the coronavirus is likely to change consumer behavior as individuals choose to stay home in order to decrease their risk of contracting the disease.
Already, airlines and restaurants are seeing a negative impact.
Cramer has called it the “stay-at-home-economy.” He has said the trend has been developing for years but argued the coronavirus is accelerating the transition.
“Stay-at-home is going to be a theme, but Amazon is going to get it to you,” Cramer said Monday.
Cramer also said he felt Amazon was going to benefit from lower oil prices, which have continued to fall in response to lower consumer demand and more recently a failure from OPEC to reach a production cut agreement.
While he recommends Amazon’s stock, Cramer cautioned investors against buying into Walmart‘s recent weakness.
Shares of the Bentonville, Arkansas-based retailer were up about 2% to around $120 each Monday.
Walmart’s stock started Monday’s session lower before rebounding. Cramer noted that the stock is up more than 20% from its 52-week low of $96.53 on March 28.
“How about a little more value?” Cramer said Monday, suggesting Walmart would need to come down more before he recommends buying it.