 We are following breaking news on this Friday. Amazon agreeing to buy Whole Foods for $13.7 billion. Let's talk about it now with Jim Kramer on the floor of the New York Stock Exchange. All right, Jim, take it away. It's disruption of society, not just disruption. This is what I regard as being a move by Amazon to destroy the margins and own the business of food and groceries in this country. You can't compete with Amazon on price. But the big rap against Amazon was the food could spoil. They needed this level of distribution. They remember what they can do. They are a technology master. They can charge what they want and no one will mind. They could lose money for years and no one will mind. They can wipe out a whole industry. Everyone's in this industry, but no one has been able to successfully compete with Amazon when Amazon wants to dominate an industry. And I don't think this is gonna be any different. Walmart will put up a fight. That's what Walmart will do. Everybody else has to think, do I surrender? Do I get out of food? How do I make money in food? It's now the food section of my business really terrible. And let's overlay. Yesterday's got what happened with Kroger. Where Kroger told you, listen, we've got competition coming in from every side. You know, thatality, they got a light DL coming in. They've got, obviously, you always have the dollar stores. I mean, we own that for action alerts. We own Walgreens. I'm going to have to, you know, I'm going to do noodle in this Walgreens. Walgreens has emphasized food of late. Maybe that's a mistake. So people who have tried to get food in order to be able to compete with the busy mother on the way home, you know, busy parent, but that's how they view it, have suddenly had a wake-up call. And the wake-up call is Amazon's in our business. And what they can do, even if you listen to Kroger, they were concerned before, what Amazon can do is lose money. They can lose money. Now remember, if you're an Amazon pride, what would happen? So how about if they say Amazon Prime, today eggs are free. Amazon Prime, today we're giving away milk. Amazon Prime, go into our grocery aisle and you can get a sirloin for free. Amazon Prime is the ultimate club. Now you take Costco, Costco's a club. Absolutely, it's a great club and you get very good prices. Costco is the one that I think is, I mean, if I, I don't want to buy any of these right now I want the dust to settle because we've got to downgrade these industries. But Costco is the one that can compete because they do it on a club basis and they pass the long prices. But food deflation is bad for them. They've given you an excellent, if you go back to Costco's, you have a great disposition on food deflation. But this is what I call the most ultimate disruption that I have seen in an industry. One company coming in, now there's only 400 plus stores of Whole Foods, okay? But they had a roadmap to do 1200. Activists came in, one of the things that Whole Foods pride itself is they make the most money per square foot of any retailer. Now, Amazon doesn't need to do that, obviously. Now, Whole Foods has a great prepared foods. Prepared foods was something that obviously Amazon couldn't do, right? I mean, remember, we think about what Amazon couldn't and couldn't do. They could not do prepared foods. So they could not offer the virtual supermarket online. They could only offer, you know, maybe they were really paper towel time. Let's think about it as paper towel time. They were in the dry goods portion of the grocery business. They were struggling about how to do the fresh. Well, we know how to do fresh. Now, what does it do for Uber? Do they use Uber? Does someone else use Uber to deliver? You can no longer be just, you've got to be able to deliver against Amazon. That's another problem. See, if Amazon can deliver to your house, why do you want to stop at the store? Now, Amazon's got another thing. What Amazon's able to do, they already have the biggest problem with supermarkets is checkout. But Amazon has been perfecting, and by the way, D-Bolt, Nick's store is on TBT. They also have it. But they have been able to perfect this notion of shopping with this so you could go to a Whole Foods, breeze right through because you've done, you've checked everything, and then you're out. So they've got no, I mean, one of the big problems against Whole Foods has been the lines. Well, we just eliminated the lines. Technology has eluded Whole Foods. One of the things that Whole Foods underspend on for a long time was point of sale. Well, you don't have to worry about that anymore because Amazon's the king of point of sale. So you've got a club membership that now includes everything. It's a consumption driven company. Amazon is a country. And it's a country that offers everything that you need to eat, to feed and clothe the family. This is a feed and clothe a family situation. Just incredible. And what does this all mean for John Mackie? Well, John Mackie, they say he's gonna stay. You know, I don't know. John Mackie is what I regard as a mercurial man. Walter Robb is a steady man. Walter Robb is a great man. Walter Robb is a good man. I would love to see Walter Robb as the former co-CEO. I'd love to see him come back. I'd love to see him come back. Could Amazon do a two class employment situation? The Mackie people get paid more and then a new level comes in and gets paid less because the Whole Foods people are paid more than anybody. But remember, Amazon's non-union. So they could open a whole new group of Whole Foods that I believe are non-union and cheaper. Again, you're dealing with a competitor that has scale, that has cheap labor, that has supply chain management. That's the best we've ever seen. And they are somebody who, if you compete with, you can only compete on price and no one has that balance sheet except for Walmart. Maybe Costco. To compete on price against Amazon is to say, I'm going to lose money on food for now until the eyes can see. So think about it at Target. Think about it at the dollar store. It's going to be very challenging here. Now the dollar stores will say, well, wait a second, are people are not generally Amazon shoppers? Because they can't afford the Prime. But I still don't want to be in food anywhere. And that's what this did. I mean, remember the mall, what Amazon did to the mall? Amazon's now going to do to the grocery store. And remember, there's no given lifespan to a grocery store. When I was growing up, it was the Great Atlantic and Pacific Tea Company, okay? And Sears. Well, hey, Geet, Great Atlantic and Pacific, uh-uh. Sears, I don't know. I think that Sears, they are a chunk of real estate that Amazon now needs. But not in any way that's going to benefit Sears. It's just incredible. And the other M&A deal that's, you know, on a much smaller scale, Walmart buying Benobos. Yeah, you know, I mean, look, Walmart wants to have an apparel to run through a jet.com. And that's fine. They've been on my show with mad money. And, you know, that's fine. I mean, you know, that's fine. It's like a flea. You know, it's the day of the night of the flea. Okay, Anna.