CNBC’s Jim Cramer said Tuesday he no longer sees Amazon’s e-commerce giant as the so-called “death star” capable of dealing with large box retailers, from pharmacies to electronics.
“The star-studded days of Amazon’s death are over,” the Mad Money host said. “The rest of the brick and mortar retailers have their force fields and are shipping Amazon projectiles at the same time invincible digital distributor. I still like the company and the stocks, but it’s no longer wasting the whole industry. before “.
Cramer said Amazon’s belief in the ability to move into any industry and quickly gain an edge over headlines has been steadily declining, due in part to innovations and improvements from CVS Health, Target and Walmart.
“But if there were any doubts about the end of Amazon’s status as a death star,” Cramer said Best Buy put an end to that with its earnings report on Tuesday. “This is the most miraculous history of trade change at the moment.”
Shares of Best Buy appeared more than 8% on Tuesday, while Wall Street brightened the company’s second-quarter results. Sales rose nearly 20% in the quarter to $ 11.85 billion, surpassing analysts ’estimates of $ 11.49 billion, according to Refinitiv. The $ 2.98 earnings per share easily exceeds the $ 1.85 forecasts.
Cramer promoted the Best Buy membership program known as Total Tech Support, saying it “has already exceeded expectations … and it’s easy to see why.”
According to the Best Buy website, the subscription program, which costs $ 199.99 a year, provides “unlimited support for all your technology and appliances, no matter where you bought them.”
“You probably have a computer department that will help you work at the head office, but what do you have at home? You have nothing to talk about … which is a problem now that there are so many people working from home “Cramer said. . “Best Buy basically replaces corporate technical assistance for remote workers.”
Best Buy used to be seen as “just a showroom for Amazon,” but the company under the leadership of CEO Corie Barry continues to innovate and thrive, Cramer said. While Best Buy shares have risen nearly 22% so far, Cramer said “this stock has more room to run.”
“Until this quarter, though, I was always afraid, with the exception of Walmart and Costco, that Amazon could run any of these companies on earth as long as they liked it,” Cramer added. “Instead, the former death star is now playing with bricks and mortars, no doubt just to find out what his competitors already know.”