Look out Amazon, this company could win in beauty

Amazon has a track record of disrupting other industries, but CNBC’s Jim Cramer thinks the e-commerce giant shuold be more worried about a top dog in the world of beauty.

That company is Ulta Beauty, the cosmetics and skincare store chain that has a $20.5 billion market capitalization.

“I think Amazon should be more concerned than Ulta,” the “Mad Money” host said.

Shares of Ulta, along with Sally Beauty, dropped last month when the online marketplace announced its own beauty concept for licensed professionals. Because of the news, one Colorado viewer phoned Cramer to ask whether he should sell his stake in Ulta.

Cramer thinks Ulta is in good shape.

“Because [CEO] Mary Dillon runs a tight ship, [is] still putting up stores and [has] the best loyalty program in the world,” he said. “So look out Amazon, Ulta is the real deal.”

The market “threw us a bit of a curve ball” Tuesday as investors avoided reliable defensive stocks even after Wall Street received critical evidence that the global economy is stumbling, Cramer said.

BASF, the gigantic German chemical manufacturer connected to the semiconductor, autos, pesticides and consumer products industries, revealed Monday that it may need to cut its full-year earnings forecast by 30%. The company blamed low car and crop sales, along with the U.S.-China trade war.

Cramer called the dim outlook “a very big deal.”

Find out what that means for the rest of the market here

IBM CEO Ginni Rometty told CNBC she expects Red Hat will produce 2% of annual growth for the computer company’s top line in coming years.

Red Hat, she said, already has a sizable reach, but not the 175-country operation that IBM maintains.

“We grow by expanding Red Hat that way,” Rometty explained to Cramer in an interview, alongside Red Hat CEO Jim Whitehurst. “It really is a play that helps all of IBM, as well as extends what Red Hat’s done, and then together we make it even better.”

Read more here

Amazon, the most dominant name in shopping and retail, is facing increasing competition from a new breed of niche players in the industry, Cramer said.

While names like Costco, Target and Walmart have their own grip on the industry, the host pointed out Etsy, LuluLemon, Pinterest and Stitch Fix as companies that are carving their own lane.

Cramer took a look at chart analysis by technician Tim Collins, one of his colleagues at RealMoney.com, to see what’s in store for the group of four companies.

“In a retail environment dominated by a handful of players that we all know … there are smaller operators that we have found ways to like and win with,” Cramer said. “The charts, as interpreted by Tim Collins, suggest that all four could have more room to run.”

Dive into the chart analysis here

Wex CEO Melissa Smith visited Cramer to discuss the payment solutions her company offers to the commercial and government vehicle fleet industry, and breaks down other industries the firm has exposure to.

Catch the full interview here

In Cramer’s lighting round, the “Mad Money” host zips through his thoughts about callers’ stock picks of the day.

Aurora Cannabis: “I have to tell you that I’m struggling here with my Canopy. I’m not going to go down the food chain. We’re going to have to say no way, not at this time. “

Nio Inc.: “The thing is so beaten up, anything can bounce. But I have to tell you, I mean, Chinese auto in a market where BASF tells me that Chinese autos is doing badly … you’ve got to run.”

Bank of America: “Bank of America is incredibly cheap. The bank stocks finally look like they’ve caught a bid. … own Bank of America.”

Disclosure: Cramer’s charitable trust owns shares of Amazon.