NEW YORK (TheStreet) -- On CNBC's "Cramer's Stop Trading" segment, Jim Cramer said Rite Aid
(RAD - Get Report) is taking the pharmacy industry by storm along with CVS Caremark
(CVS) and Walgreen
(WAG). The three companies -- an oligopoly -- are squeezing the middle man. Rite Aid is no longer a turnaround story, Cramer said, it is an earnings story. The company's 5% same store sales increase beat his expectations of 3% to 4% growth.
Cardinal Health (CAH) and Express Scripts Holding (ESRX) each reported bad numbers, he said. The HMOs are winning, the drug stores are winning and the middle men are losing, he said.
Cramer says Yelp (YELP - Get Report) sparked the 'algorithm of the Internet' when it did well in he quarter.
"It's almost as if a machine says,'Oh, good!'" on Yelp results, "'We've got to buy Facebook (FB), Workday (WDAY) and Concur Technologies (CNQR),'" Cramer said. And you've got a move all at once to to these Internet companies.