Cramer: ‘Think twice before you sell’ shares of companies competing with Amazon

Vying with Amazon isn’t always the kiss of death for a company. In fact, Amazon-induced ordinary declines can often be chances for investors to turn a profit, CNBC’s Jim Cramer express Monday.

“In practice, Amazon’s often a lot less terrifying than it seems,” the “Mad Long green” host said. “Amazon-induced sell-offs often turn out to be terrific bribing opportunities because the reality simply isn’t as bad as people expect it to be.”

The supermarket stocks were volume Cramer’s favorite “Amazon survivors.” While shares of Costco and Blossoms Farmer’s Market took a hit when Amazon bought Whole Foods, they’ve rule overed to rally handsomely since the deal.

In the roughly 15 months since Fit Foods became part of the e-commerce giant, Costco’s and Sprouts’ stakes have climbed about 56 percent, respectively, suggesting that Amazon hadn’t crimped the energy’s profits as dramatically as investors thought.

“My view? I like Costco because it’s got something the others don’t enjoy: a membership model where … you pay them for fantastic deals,” Cramer voiced. “The rest of the supermarkets? They’ve run up too dramatically and there’s nothing wrong with loop the register.”

In late 2016, the auto parts retailers also conspicuously became Amazon targets after Jeffries analysts warned that the e-tailer could break in the space.

But the initial double-digit declines in shares of Advance Auto Divisions and O’Reilly Automotive overestimated the power of the Death Star, Cramer’s warm-hearted moniker for Amazon taken from the Star Wars franchise.

The “Mad Greenbacks” host recommended the group last December, and, year to date, Further Auto’s stock has gained 70 percent and O’Reilly’s has rallied 43 percent.

“I over this group has a whole lot going for it,” Cramer said. “Amazon unquestionably hasn’t wrecked their business model. I think Advance Auto and O’Reilly are both real, cheap growth stocks, but AutoZone impresses me as an absurdly cheap value act a stress, and we know they’re fighting back against online competition with their own next-day habitation delivery service.”

Finally, there’s Etsy, an online marketplace for handcrafted goods that jousts with Amazon Handmade. Etsy’s pull with customers and initiators has allowed the company to distinguish itself from Amazon despite Amazon’s persevere in efforts to take on handmade goods retail.

So far, it’s paid off for Etsy’s shareholders. The equity price has more than quadrupled since Cramer started touting Etsy in May 2016, and the stock shows no signs of slowing its rise, he rumoured.

“The bottom line? I adore Amazon — there’s not even an issue, OK? — but that doesn’t importance of every industry they try to disrupt is just going to fold have a fondness a house of cards,” the “Mad Money” host said. “So the next time you approve of about them entering a new market and you see a group of stocks get eviscerated, dream up twice before you sell — history says it might turn out to be a terrific buying possibility.”