Amazon.com, Inc. (AMZN) Upgraded to Buy, Refusing Time Warner Inc (TWX) Orders: Jim Cramer & David Faber

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Amazon.com, Inc. (NASDAQ:AMZN) is making headlines today as the company has been upgraded to Buy by Goldman Sachs and is reported to be refusing preorders for content produced by Time Warner Inc (NYSE:TWX), Jim Cramer and David Faber discussed on CNBC.

According to Faber, Goldman Sachs has upgraded Amazon.com, Inc. (NASDAQ:AMZN) because of its extremely favorable risk/reward profile. Analyst Heath Terry has also placed a price target of $400 on the stock of the internet commerce giant. In a later part of the discussion, the duo also mentioned that the upgrade to Amazon is partly because it has the best cash return on cash invested, as mentioned by Goldman Sachs.

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Faber also mentioned that the company may be in another dispute, this time with Time Warner Inc (NYSE:TWX), as published reports he cited say that Amazon is refusing to let customers preorder content from Time Warner. Amazon, Faber added, has not commented on the issue while a spokesperson for the other side said that the company does not comment on contract points or any proprietary issues the company currently has.

The new spat with Time Warner Inc (NYSE:TWX) comes hot on the heels of Amazon.com, Inc. (NASDAQ:AMZN) feuding with the Hachette Book Group as the company is reportedly trying to bring the prices of books from the publisher down.

The Squawk on the Street team then discussed whether it is true that Amazon now has a monopsony, a monopoly that aims to bring prices down. Cramer and Faber noted that this is Amazon’s way which is also how Wal-Mart Stores, Inc. (NYSE:WMT) acts with its suppliers. The team wondered whether public perception of the company is changing as it throws its weight around to lower prices of goods they are retailing.

Watch the video below where Cramer and Faber talk about the company’s rumored smartphone which is expected to be launched during the internet giant’s event this June 18.

Amazon.com, Inc. (NASDAQ:AMZN) investors includes Bronson Point Partners managed by Larry Foley and Paul Farrell which reported a stake that’s valued at about $24.39 million with 72,500 shares after the end of March. Standard Pacific Capital managed by Douglas Dillard Jr. and Raj D. Venkatesan also held 69,676 shares in the company in the first quarter of the year.

Disclosure: None

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