IBM Has Been Amazon'd, According To Jim Cramer

The argument could be made that Amazon.com, Inc. AMZN's convenient and speedy delivery service along with competitive pricing has resulted in the demise of many retailers. At the same time the list of companies that have been "Amazon'd" should also include International Business Machines Corp. IBM, at least according to Jim Cramer.

IBM's earnings report isn't being digested well by investors as the stock hit a new 52-week low of $146.71 on Wednesday. This is partly due to the fact that it takes so long for a company the size of IBM to transform itself away from aging legacy businesses into new age ventures like cloud and artificial intelligence, Cramer said Wednesday morning.

IBM needs to transform itself it is doing so against "competitors the likes of which IBM has never seen before." One of the competitors include Amazon's AWS segment, which happens to be the world's biggest cloud business. In other words, IBM is now being "Amazon'd," which also has an unfortunate consequence of the company not being able to attract top talent to work on its various investments and new business lines.

"IBM is really burdened by the old business," Cramer stated. "And the new business — they're up against these amazing companies."

There may be hope for IBM in the end as many of the ongoing initiatives haven't kicked in yet. As such, the stock also "has not kicked in yet."

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