Investors should factor the Amazon effect into their stock-picking homework because the company is a "Death Star" that could disrupt any industry it decides to set its gaze on, CNBC's Jim Cramer said Monday.
Amazon could potentially throw shipping and delivery companies, such as FedEx and GrubHub, off balance as it builds out its own transports business, he said. The tech behemoth has already been chipped away at Walgreen's, who is facing difficulties in the front of the store and the pharmacy, and CVS, which is nursing its health care strategy with Aetna, Cramer said.
Amazon has buddied up with JP Morgan Chase and Berkshire Hathaway on a project called Haven to reduce health care costs.
"They could theoretically have the same kind of bargaining power as Medicare or the [U.S. Department of Veterans Affairs]. Health care seems totally vulnerable," Cramer said. There are several companies, however, that have managed to protect their market share and not capitulate to rumors that Amazon would come for their industries, Cramer said. Earlier Monday Best Buy promoted Corie Barry, who was responsible for the retailer's home service program to box out Amazon, from CFO to CEO. Autozone retained its place in the auto parts industry after facing pressure from Amazon last year.
Home Depot, Lowe's, and Cisco have all fended off Amazon, he added. Industries where businesses do not include a hands-on service or work for a customer are vulnerable, he said.
"The next time you think about buying a stock, you need to ask yourself a question – add this to your homework checklist
Disclosure: Cramer's charitable trust owns shares of Amazon.com and Home Depot.
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