Is Amazon A Death Trap For The Bears? Why Jim Cramer Is Calling It The 'Most Dangerous Short'

Jim Cramer sees more layoffs are on the horizon — and it could be bad news for anyone betting against Amazon.com Inc AMZN.

What To Know: Meta Platforms Inc META has deemed 2023 "the year of efficiency" and it's working out well for shareholders. Just a few months after cutting about 13% of its workforce, Meta announced another round of job cuts last month. The stock is up more than 75% year-to-date.

Cramer said this trend is going to continue among big tech firms and he said Amazon stock could see a huge lift from continued layoffs. The e-commerce giant has already announced two rounds of job cuts in recent months, but many viewed the layoffs as somewhat trivial given the massive size of its workforce.

Although Amazon shares are up 20% since the start of the year, the stock has been trending lower for a large part of the last two years and it's trading close to where it was five years ago.

At these levels, Cramer suggested Amazon is a death trap for short sellers. If Amazon wakes up one day and decides to eliminate close to 50,000 jobs, the stock is likely to move significantly higher, he said.

"I think Amazon is the most dangerous short there is today," Cramer said.

"You short that ... send me an invitation to your funeral."

From Last Week: Amazon Forms Bullish Pattern While Consolidating Sideways: The Bull, Bear Case For The Tech Giant

Amazon laid off 18,000 workers in January and another 9,000 last month. If the company were to cut another 50,000 jobs, it would mark the largest round of layoffs in company history and bring total job cuts in 2023 above 75,000.

AMZN Price Action: Amazon shares are down more than 40% over the last two years.

The stock was down 0.61% at $101.44 at the time of writing, according to Benzinga Pro.

Photo: Courtesy of Scott Beale on Flickr