06-27-2017, 11:54 AM
Cramer also spoke with Joe Kiani, the chairman and CEO of medical device maker Masimo Corporation, on Friday to discuss his company and a recent reporting error that caused its stock to unjustly tank. After the Associated Press's automatic reporting mechanism incorrectly reported that the company had missed earnings and guidance estimates when it had not, Kiani said it set off a cycle that became increasingly worse as the news disseminated. "I guess, in this day of fake news, we should've expected something like that," Kiani said. "But unlike the normal fake news, this had even a greater impact because you have these robo-news agencies trying to use artificial intelligence to give information, but unfortunately, when they get it wrong, you have robo-computers selling or buying based on that news. So I think this had a terrible, vicious cycle." In reality, Masimo handily beat estimates, thanks in part to a nearly $5 million investment from the Bill and Melinda Gates Foundation to support its state-of-the-art pulse oximeters, which measure oxygen levels. "They looked at 20 pulse oximeters. They took the top three to five countries where a million children are, unfortunately, dying every year from pneumonia and tested it. Our error rate was less than 3 percent. The next-best pulse oximeter was over 30 percent. So I'm really happy to tell you we partnered with [the] Bill and Melinda Gates Foundation," Kiani told Cramer.
Cramer Remix: This retail stock could be immune to Amazon
Walmart (WMT) shares got crushed Friday following news that Amazon (AMZN) is aggressively moving into the grocery store business by scooping up Whole Foods. But while the online giant Amazon has been expanding its physical footprint, brick-and-mortar giant Walmart has been ramping up its own e-commerce business to compete. According to UBS analysts, Walmart.com’s stock keeping units (SKUs) have increased to around 50 million today from around 10 million a year ago. In fact, Walmart on Friday announced that it is buying Bonobos, a menswear brand built on the internet, for $310 million in cash. This is Walmart’s latest effort to expedite its digital transformation. Walmart has been selling online since 1999, and now is America’s third-largest e-commerce retailer, according to eMarketer. But Walmart’s online sales of $14.4 billion last year are still a far cry from Amazon’s $94.7 billion.
How Amazon is eclipsing Walmart's best efforts to dominate e-commerce
Amazon spread its reach further into the retail industry on Friday when it announced its jaw-dropping acquisition of Whole Foods for $13.7 billion. The market's instant reaction — Amazon's shares rallied while those of its competitors tumbled — sent a clear message: Investors are bullish on Amazon's success in the delicate business of fresh-food delivery, and they're worried about its effect on established grocers like Target and Walmart. But at least seven retail companies' stocks are "un-Amazon-able," according to a note on Monday from Oliver Chen, a senior equity research analyst at Cowen: "Taking a step back in the sector at large, we continue to believe investors will have more defense vs. AMZN's domination if they follow our Super Stock theory — we think deep value companies or luxury goods companies are more Un-Amazon-Able and less vulnerable to share losses vs. Amazon. "In our view, Un-Amazon-Able qualities include at Super-Value retailers Costco, Walmart, Ross Stores, TJX or extreme brand, store and vertical integration focus at Super-Premium luxury stocks (Tiffany, LVMH, Sotheby's)."
Amazon buys Whole Foods, but some companies are Amazon-proof - Business Insider