Amazon.com, Inc. (AMZN) Overwhelming Wal-Mart Stores, Inc. (WMT) & Other Retailers: Cramer

Wal-Mart Stores, Inc. (NYSE:WMT) downgraded their full-year earnings expectations today as the retailer struggles to ignite growth at their iconic big-box stores. They are just the latest in a series of retailers to temper expectations in a retail environment that hasn’t improved as many industry executives and analysts had anticipated.

If there’s a giant elephant in the room when discussing the continuing tepid sales numbers being both exhibited and forecast by retailers across the nation, according to Jim Cramer, that elephant’s name would be Amazon.com, Inc. (NASDAQ:AMZN).

Amazon.com Inc.

The CNBC presenter, while discussing the downgraded forecast provided by Wal-Mart during a segment on Squawk on the Street, said he believes that the Amazon.com, Inc. (NASDAQ:AMZN) effect is conspiring to overwhelm retail stores at this point and demolish their sales and margins.

In fact, Cramer’s resignation over the power of Amazon.com, Inc. (NASDAQ:AMZN) led him to recently dump Costco Wholesale Corporation (NASDAQ:COST) stock from his charitable trust portfolio, which he addressed during the segment.

“We think Costco is the finest retailer, but we just look at Amazon and we just think that Amazon has decided to wreck everybody’s margins, and as long as their stock doesn’t get hit, it just; even the best of the best, which is Costco, it’s a very tough stock to own,” Cramer said.

Cramer later added that he had owned Costco for years, but that after yesterday’s announcement that Amazon.com, Inc. (NASDAQ:AMZN) was releasing their own mobile payment system to compete with Square and PayPal and get them into an advantageous position within retail stores, he simply had thrown his hands up in the air and had said “you can’t go against these guys.”

Amazon.com, Inc. (NASDAQ:AMZN)’s new payment system will undercut the entrenched competition by as much as 1% in per-transaction fees charged to merchants until 2016, which should make it especially attractive to small businesses.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!