Amazon.com Inc (NASDAQ:AMZN) "is about to make up for its underperformance," Jim Cramer said on CNBC's "Squawk On The Street" Tuesday.

Jefferies set a sum-of-the-parts target for Amazon at $5,700 on Monday.

Cramer said Jefferies thinks Amazon Web Services could be worth $1.25 trillion in three years.

"Talk about an undervalued asset buried within this company," the CNBC host said. 

Advertising "should explode," and unionization recently failed at Amazon, he said.

Related Link: Why This Amazon Analyst Sees 'Enormous Amount Of Upside' Ahead

The note from Jefferies is going to ignite talk about Amazon going forward, in Cramer's view. 

Advertising is big and the company is doing very well with its Prime Video product, Cramer said.

Investors hold Amazon for consumer goods packaging, advertising and for AWS, he said.

"I think it is going to prove to be an excellent long-term value."

He stressed that there is no reason to trade Amazon, and Cramer instead reccomends buying and holding the e-commerce giant. 

AMZN Price Action: Amazon was up 1.26% to $3,421.83 at last check Tuesday.

Photo courtesy of Amazon.