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Cramer: The Only Way To Beat Amazon Is Merging Microsoft And Walmart

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Cramer: The Only Way To Beat Amazon Is Merging Microsoft And Walmart

Can any one retailer or company stand up to the task of dethroning Amazon.com, Inc. (NASDAQ: AMZN)'s dominance? The answer is no, at least according to Jim Cramer who thinks it will take a combination of two of the biggest Dow 30 components to take on the tech behemoth.

In order for Wal-Mart Stores Inc (NYSE: WMT) to take on Amazon, it will need to merge with Microsoft Corporation (NASDAQ: MSFT), Cramer argued during CNBC's "Squawk on the Street" segment Friday. The logic behind this is simple: Walmart need to offer a competing product to Amazon's AWS cloud service, such as Microsoft's Azure.

Meanwhile, Walmart is actively pushing members of its own supply chain to end their contracts with AWS, and by controlling Azure, it will give Walmart immediate access to the all-important cloud business.

Also, Walmart sees 100 million shoppers per week across five thousand stores and Microsoft may be better able to analyze the vast amount of data, Cramer suggested.

Merging Microsoft and Walmart together would also generate a "dream team" of leaders, including Microsoft's CEO Satya Nadella and Walmart's CEO Doug McMillon. By Cramer's own admission the odds of this merger actually happening is close to --if not zero. But that hasn't stopped him from pitching the idea directly to Nadella.

If anything, Cramer's main takeaway is that it shows a merger of the biggest retailer in the world with the greatest software company in the world is needed to take on Amazon.

Related Links:

Amazon Hopes Cloud Investments Will Stave Off Competition From Microsoft, Google

Microsoft's Smart Cloud Business To Generate 10% Growth In FY18, BMO Says
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Image Credit: By Tulane Public Relations (Mad Money Uploaded by AlbertHerring) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

Posted-In: AWS Azure cloud CNBC Doug McMillon Satya NadellaAnalyst Color Media Best of Benzinga

 

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