Investors should consider the Amazon effect on their equity house because the company is a "star of death" that could disrupt any industry it decides to watch, CNBC said Jim Cramer on Monday
Amazon was able to throw shipping and delivery companies such as FedEx and GrubHub as it stores its transportation business. Tech behemoth was already crushed by Walgreen, who faces the front of the store and the pharmacy, and Cramer, who feeds his health strategy with Aetna.
Amazon contributed to JP Morgan Chase and Berkshire Hathaway for a project called Haven to reduce health care costs
"They could theoretically have the same negotiating power as Medicare or [U.S. Department of Veterans Affairs]. Health care seems to be completely vulnerable, ”Cramer said.
However, there are some companies that have managed to protect their market share and not hijack rumors that Amazon will come out of its industry, Cramer said. Earlier on Monday, Best Buy was promoted by Corie Barry, who was responsible for Amazon's CFO to General Manager, a retailer home service program. Autozone has maintained its position in the automotive industry, facing Amazon's pressure last year.
Home Depot, Lowe, and Cisco all withdrew from Amazon. He said that industries where companies do not include practical service or work for the client are vulnerable.
"The next time you think you're buying stocks, you have to ask yourself a question – add it to your homework list: can Amazon come back and destroy the company's margin?" If so, reduce your expectations, ”Cramer said.
Disclosure: Cramer Charity Fund Manages Amazon.com and Home Depot
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