Don Emmert | AFP | Getty Images
Tourists pose for a picture with the bull sculpture near Wall Street in New York,
As the competition across the retail industry heats up, Cramer unveiled some less traditional options for investors tired of brick-and-mortar stocks and wary of Amazon.
The “Mad Money” host classified Etsy and Shopify as “small business facilitators,” or technology companies that help small- and medium-sized retailers work past the tough part of selling their goods online.
Both companies came public in the spring of 2015, and while Etsy had a tough start on the trading floor, the stock has come back since last year. Shopify, on the other hand, has more than doubled year-to-date, up 120 percent for 2017.
“In short, Etsy’s an internet-based marketplace, Shopify’s a set of tools that helps you build your own online store. While both stocks have done very well this year, there’s no denying that Shopify’s been a better performer for the whole period of time that these two companies have been publicly traded,” Cramer said.
And although Shopify’s growth story has been better overall, Etsy accepted and has so far fended off a challenge from Amazon Handmade, the e-commerce giant’s own marketplace.
“Shopify and Etsy both look good, and while Shopify’s been a stronger performer historically, I think that Etsy’s the cheaper stock [and] might have a better risk-reward,” Cramer concluded. “That said, I recommend waiting for the next market pullback if you like either stock, and I like the stock of Amazon better than both.”