“Those betting against Amazon.com Inc. (NASDAQ:AMZN) don’t understand the company’s business model,” Jim Cramer said on Monday’s “Mad Money” TV show.  He told viewers that he learned a long time ago to never sell a stock because its perceived to be overvalued. He said these perceptions mean nothing to the big fund managers, and they’re the ones who control the direction of stock prices.  Cramer said Amazon.com is the most misunderstood, most underestimated household name in the US. He mentioned the bears who’re shorting the stock are overstating the importance of Amazon’s products, like the Kindle e-reader. “Competitor devices may hit revenues in this one niche space, but they won’t derail Amazon’s larger secular growth story,” Cramer said. Cramer explained that Amazon is not just a bookstore. The company makes money from selling products in many categories giving customers a ton of selection and eliminating the inventory risk suffered by brick-and-motor retailers. He said Amazon doesn’t have to take inventory risks on a handful of hot products, but can instead offer its customers a wide range of items at the lowest possible price. Amazon’s biggest potential comes from e-commerce’s almost unlimited growth. Internet sales have seen a 21% five-year compounded growth rate, vs. just 5% for total retail sales. Amazon has been posting even better e-commerce numbers. Also, while Wal-Mart Stores Inc. (NYSE:WMT) and Target Corp. (NYSE:TGT) can open only so many new stores, there’s just about no end to how far Amazon can grow its online operations. “This means that there’s no ceiling for the stock’s price-to-earnings multiple,” Cramer said.  He told viewers that Amazon is worth its high multiple because online commerce is $135 billion in the US, which only accounts for 3% of total retail sales. Cramer thinks that number will double, or triple, in the coming years. Also the company’s profits are expected to surge 34% in 2011, and that is a huge number that money managers will be willing to pay up for. “The shorts have been wrong about Amazon time and time again, but they keep returning to the stock,” Cramer said. He explained that the bears short covering has been the force to drive the stock higher, and they’ll produce the still higher prices to come. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!