We have two trades on Tuesday. We are buying 50 shares of Amazon at roughly $180.67. Following the trade, Jim Cramer's Charitable Trust will own 800 share of AMZN, increasing its weighting to about 4.65% from about 4.37%. We are selling 50 shares of TJX Companies at roughly $129.84. Following the trade, the Trust will own 750 shares of TJX, decreasing its weighting to about 3.15% from about 3.40%. We're making a couple of moves across two retail positions, adding to a position that is down 25% from its February highs and selling some shares in a company that has bucked the market sell-off and is trading at an all-time high. Amazon shares have dropped from their all-time closing high of about $242 a share on Feb. 4 to around $181 on Tuesday, representing a pullback of about 25%. The company's sprawling businesses — from online retail to digital ads to cloud computing — are not immune to a global economic slowdown, analysts at Morgan Stanley argued in a note published late Sunday night. The analysts lowered their 2026 earnings per share estimate to reflect numerous new assumptions — slower gross merchandise volume growth; tariff risk; headwinds to its advertising and Amazon Web Services cloud businesses; and higher fulfillment and shipping costs per unit. As a result, Morgan Stanley estimates Amazon will earn $7 per share in 2026, a 10% decline from their prior estimate. The firm also lowered its price target from $280 to $245, which represents about 35% upside from the current price. While there are a lot of uncertainties out there, Amazon should emerge from this moment as a market-share winner thanks to consumers price shopping on the platform to find the best post-tariff deals. The company also has the balance sheet to keep building, expanding and reinvesting during this volatile period, leading to bigger gains in the future. Amazon is already a big position in the portfolio, and shares are trading well above our average cost basis. However, we're willing to violate our basis here because of how much the stock has fallen in such a short period of time. Additionally, we are taking advantage of the strength in TJX Companies to lock in gains and reallocate some capital in other stocks of similar high quality but have been beaten down. Over the past week, TJX has been the only stock in the S & P 500 to make a new 52-week high consistently, and it's been for a good reason. As we've frequently pointed out, the off-price retailers will be a beneficiary of all this supply chain chaos. Here's the scenario we see unfolding: Retailers likely rushed orders to get ahead of the tariffs. If demand isn't accurately forecasted, they will be stuck with too much inventory that must be liquidated to preserve cash. An off-price retailer like TJX, the operator of the TJ Maxx, Marhsalls and HomeGoods chains, will buy that merchandise and sell it to its value-seeking customers at fire sale prices. This all points to TJX being one of the big winners of all this trade uncertainty. But with TJX shares up about 4% compared to the 4% decline in the S & P 500 since President Donald Trump's April 2 tariff announcements, the market has started to price in our views. We still love the long-term thesis, but we are making a very small trim and downgrading the stock to our hold-equivalent 2 rating after its run of outperformance. From this sale, we will realize a strong gain of more than 100% on stock purchased in August 2022. (Jim Cramer's Charitable Trust is long TJX and AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
