 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. Okay, 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? Is 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 LIDL 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 on 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 Prime, 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 products 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 prep, prepared foods. Prepared foods was something that obviously Amazon couldn't do, right? I mean, remember, 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, Debold 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 Mackey? Well, John Mackey, they say he's gonna stay. You know, I don't know. John Mackey 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. Now, could Amazon do a two class employment situation? The Mackey 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 gonna be very challenging here. Now the dollar stores will say, well, wait a second. Our people are not generally Amazon shoppers because they can't afford the crime. 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 gonna 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, great Italian 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 gonna benefit Sears. It's just incredible. And the other M&A deal that's, you know, on a much smaller scale, Walmart buying bonobos. 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. All right. Moving on to some other stocks. There's a note out from Morgan Stanley saying that the Apple pullback is due to overall tech- At Katie Ubrity, who's really fabulous and I like her stuff, it's not gonna necessarily change things right now because we have, these stocks are heavy. I've been saying that, you know, we downgraded Apple to a two because we knew that there was just too much price. There's too many people talking about a supercycle. You know, when you have these sellers that come in, all you gotta do is wait them out. And one of the things I learned as a hedge fund manager, patience is better, patience is a true virtue. Wait out the sellers. Just wait them out. You'll be fine. Trying to figure out right now whether, I just mentioned Costco one squawk of the ship. Costco's intriguing to me. Costco, but Costco can compete. It's intriguing to me. Not yet, not yet, because they, you know, Costco's a lot of, they can make a lot of deals. And they can, they have food deflation right now for the food that they have, but it's perishables. They can come down. They might, I don't know whether Costco compete with Amazon and getting food, but remember, because they make their money on the card, I'm just noodling about Costco. I'm noodling, I'm noodling. Not sure yet, not sure yet. Amazon should go through a thousand. All right, something to watch. Yeah, definitely. Also, credit squeeze downgraded square? Yeah, Sarah Friar's doing such an amazing job there. CFO, but really kind of runs the place. She's just monster good. She's out of Goldman. She's just one of my absolute favorites. I think she does that. We use Caviar at Bar San Miguel. It's a terrific product. Should we switch to the point of sale product? I don't know. But I do think that Square has moved up from 14 to 24 very fast. And that was because there were a lot of shorts in Square thinking that their business model, which was to lend to small business, was dangerous. But I've gone over this. David Vineyer's on the board. Now he used to be the CFO of Goldman. And what I look at when I think about that situation is that Square has a very good call on the cash that comes out of the register, because that's what they say. So it turned out to be that their model wasn't nearly as dicey, so the shorts had to come in and cover just the way it was. Square, probably too high, too far, too fast. I give it a speeding ticket, but it comes back to 20. Bye-bye-bye. All right, and then yesterday we had layoff announcements at Nike, and now the stock has been downgraded by Drake. I'm struggling with Nike. I'm struggling with Nike because I think that the moves are gonna be right, but the industry is so competitive. It's not like Nike and nobody else. Adidas came back to life, big balance sheet there. Under Armour, obviously. Kevin Pine's part of the mix and paying up for endorsements. But Nike, Europe had been slowing. United States is bad. The wholesale chain's bad. Is Nike finished? No, but Nike's gonna have to, it's a Nike reset. And I tend not to wanna play the resets for a couple of quarters. Hey, Jim, what did you make of these snapshares getting slammed yesterday? Well, you know, Snap has got 900 million shares that are gonna come off, kind of off-pat. And so to speak, if you wanna look at it, like it's gonna become a generic stock. I never liked the two classes that no vote. I don't like situations with no vote. We did a fabulous corporate governance conference for the street and deal. I just think that what's happened with Squares is that there's going to be tremendous pressure on the stock when that comes in. And then we have to rethink. I know that DJ Khaled loves, he loves Snap, he loves Snap. But my problem with Snap is Instagram. Instagram is so on its game right here, so on its game. And Mark Zuckerberg is such a laser-like focused guy. He's Amazon to Kroger, okay? They're Kroger. Actually, they wish they were Kroger. Kroger's a great American company, but there's nothing you can do in the end. Because Amazon is the army, navy, the Marines, okay? They're coming in and they're the Air Force. And you are cavalry. You're cavalry. I mean, these guys are cavalry. I mean, you're coming in with cavalry. These guys, Amazon's mechanized in their cavalry. It just doesn't work. My grandfather was in the cavalry, served with Pershing. No go, man. No go against mechanized. Amazon's world, we just live in it. Exactly right. That's why this guy should go one through 1000, should have been below. But it's, you know, it's sui generis. It's sui, that's why they learned that a little sui generis. No one is like going to come up with something like this again. And what can I say? I do love Amazon. We all love Amazon. You got that button, you can press it, the tide comes. Now I want the stakes to come. I press the button, I want the stake. And I want the stake, what I really want, I want the t-bone, okay? And I want the t-bone in time because the barbecue is on, and I want some charcoal, and then boom, and it's there. I mean, it's what we've always wanted. It's kind of like the Jetsons. I mean, it's not even worth talking about this, but Facebook is now going to be using artificial intelligence. Love Facebook. Love Facebook. But you know, Facebook, so I remember it's Fang. Whoever created that Fang, I want to just demolish it. Hey, you did. What can you do? She and Kramer created Fang. What can you do? Always imitated, never, yo, always duplicated, but never been able to be beaten. I saw someone come up with Fang. I said, Fang doesn't stand for anything. You at least got to be a literate. I mean, the people who try to come in against me, there's a big mode on this stuff. No, we got Fang and Jim also created Candies. I created Candies and those socks are doing incredibly well. They've crushed the market. Even though the D was Deckers, I'm being incredible. And you go to realmoney.com for more on Candies. And then a big day for Action Learns Plus. We have the Dow, DuPont Merge are getting through. Oh my God, this is so big. Now look, it's not going to be three different companies. We are relaxed. They're going to spin off as they spin off. There's going to be a lot being done. Ed Breen is one of the great value creators. I'm here to spend time studying Breen this weekend. He's a remarkable guy and he's a scrappy guy. He's a scrappy guy and he, you know, Dan Lobe is like, you think Dan Lobe has got a plan and you know what? He knows. He knows not to press too hard on Ed Breen. Because, you know, Ed Breen brings a gun to a knife fight. All right, Jim, so much for a quiet Friday. Thank you so much. Yeah, I was going to go to the Hampton. Screw that. Talk to you later. All right, thanks so much, Jim. For more on Amazon and Whole Foods, stay with The Street.