He also pointed out UPS and FedEx’s strong stock growth.
“Second-quarter revenues for UPS were up about 8 percent. FedEx, they had a problem with the cyberattack, but they’re growing about the same rate too. Those are great growth numbers,” he said.
Jim Cramer, host of CNBC’s “Mad Money,” isn’t sure those numbers will continue to rise much longer.
Amazon distribution threats can have real power, he said Thursday on “Squawk on the Street.” He explained that the stock of drugstore chain Walgreens has struggled after news that Amazon could be looking to break into the multibillion-dollar pharmacy market.
When asked whether UPS and FedEx investors should be concerned about Amazon entering the market, Cramer said “yes.”
“We’ll wait for a second day. See if anyone joins or downgrades these, and then you got your shot,” he said, referring to UPS and FedEx.
So far, Amazon shares are outperforming the delivery companies again this year. The internet e-commerce giant is up 29 percent year to date through Wednesday versus UPS’ 4 percent and FedEx’s 19 percent returns.