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Cramer: Finally! A retailer that can beat Amazon

CNBC's Jim Cramer says he's finally found a company that can beat Amazon at its own game: Zulily, the online shopping portal that offers daily deals for moms and children.

"This is the first company that has said 'we can beat Amazon,' and I believe them," Cramer said Tuesday on "Squawk on the Street." "I think they can beat Amazon. Why? Because they are a technology company in the women's apparel business. It's a revolutionary company. I urge everyone to take a look at ZU."

(Read more: Amazon in talks with traditional retailers: Report)

Zulily on Monday reported fourth-quarter profits that beat expectations, sending shares sharply upward in extended hours trading. When markets opened Tuesday, Zulily stock exploded and nearly reached a 40-percent increase during the first half hour of trading. Cramer said the stock deserves the attention.

"You will be hearing from this company," Cramer said. "I am not overdoing this company. This stock is going higher today. Oh, shoot it just went up 4 points today."

(Read more: Zulily shares jump on 4Q)

Seattle-based Zulily, which went public in November, doubled revenue in the past year to $257 million from $128.5 million. Analysts had anticipated revenue of $225.5 million. The company also doubled its user base last year to 3.2 million. Cramer attributed the company's success to its commitment to mobile technology.

"It's because these guys understand women's apparel better than anyone," Cramer said. "They understand that ... retail is technology now."

Disclosure: Cramer's charitable trust does not own shares of Zulily.

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street." The Associated Press contributed to this report.

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