Best Buy Put End To Any Doubt About Amazon's 'Death Star Status' With Q2 Earnings, Says Cramer

CNBC "Mad Money" host Jim Cramer said on Tuesday he no longer sees the e-commerce giant Amazon.com Inc AMZN as the "death star" and Best Buy Co Inc’s BBY comeback backs his thesis.

What Happened: Cramer said he longer thought of Amazon as a company that was capable of brutally nailing down other big-box retailers in categories ranging from pharmacy to electronics.

“The remaining brick-and-mortar retailers have their force fields and they’re beaming Amazon’s projectiles right back at the once invincible digital retailer,” the former hedge fund manager said. “This is the most miraculous turnaround story in retail right now.”

Best Buy and other competitors such as CVS Health Corp CVS, Target Corp TGT and Walmart Inc WMT have tackled Amazon’s ability to move into any sector and quickly gain an advantage by incorporating innovations and improvements in their own businesses, as per Cramer.

Why It Matters: Best Buy on Tuesday announced better-than-expected second-quarter earnings and issued guidance above estimates, which as per Cramer have put end to any doubts about "the end of Amazon’s death star status."

In 2019, Best Buy stores were bleeding money as they turned "merely" into Amazon showrooms, with customers walking in to test products but bought them online instead, Cramer noted. Since then it has successfully turned around its business and become the model for how to fight the e-commerce giant, as per the CNBC host.

Price Action: Amazon shares closed 1.22% higher at $3,305.78 on Tuesday and Best Buy shares closed 8.32% higher at $121.49.

See Also: Jim Cramer Thinks More Acquisitions From Pfizer Are Coming, Reveals What Similar Type Of Stocks To Watch

Photo: Courtesy of Nicholas Eckhart on Flickr