ive, learn, & get luvs.

the dow climbed 16 points. s&p gained 2.0. we have to accept that the waters are treacherous and the tides are shifting on a day-to-day basis. >> buy, buy, buy. >> sell, sell, sell. >> just think about it. no matter how hard it iss to read the shipments. secretary of state perry committed our country to syria. it was okay if the syrian government machine gunned,

bombed them, rolled them over. the executive branch decided syrian can't use chemical weapons. we and our allies will have a gulf war. at the moment, it's posed to start today. yesterday the allies started balking, our closest friends, buddy, might not be on board. the people there the prime minister represents, they are off for know now. the market attempts to regain its losses. you base it on the president and the secretary of state came in short and got run over by the peace train. you simply can't gain this particular cross car bus the parties anne aren't able. who would have thought somebody so definite on monday would be oh so indefinite? who can trade off that? how about the gross domestic product? second quarter, initial estimate was 1.7%. kind of anemic. the fed continues buying $85 billion in bond each month. billion in bond each month. a 1.7 growth rate, wants the job growth ben bernanke favors. today we found the number was 2.5%, which is the kind of

growth that might make bernanke buy bonds. how about the technic also? how about the technic also? earlier this week, the s&p moved, the forecaster of our next move. family levels were supposed to go. they were supposed to give way. now you should be long. the inconsistencies extended individuals stocks. we heard verizon was talking about purchasing 45% of verizon wireless. deal was scuttled, definitely dead, without a doubt. no dice. then today we weak up and learn it's a done deal, perhaps 130 billion. those stocks were headed down the first time around when we got word it was on. both rallied. this time verizon rallied on the news of the deal. does it make any sense at all? just last thursday, haines celestial was the best quarter. whole foods and fresh market coming in, incredibly strong. they reported same store sales weak. no wonder they can't make up its mind, next week, the unemployment report, judging from the jobless claims, ma ib the best in ages. before you jump up for joy, if you own stock that, could be terrible news because it will verify all the talk about how the fed won't help anymore. so a strong number, look up oil. then right on the heels of that number, congress turns and begins to deliberate on the budget deals and debt ceiling, jack lew speaking earlier on cnbc, there will be no negotiations on the debt

ceiling. if that's the case, i will tell you what happened, we had a government shutdown, plain and simple. these republicans won't tolerate that intransigence, they met every single day, government shutdown, i don't know how those negotiations will come out any more than i know it will hit with missiles, partly because the president doesn't know how it will come out with congress. here's what we do know. this is the most important point about september. neither party, the president nor congress, democrats or republicans ever seems to take into account what their actions might mean for the economy. it's not on the partisan agendas. neither the democrats or republicans think of what their actions will do to business formation and confidence. when you take away the economic imperative, when you don't care about what actions do to stocks, to jobs, to economy, to growth. you pretty much ensure the stockmarket will go down. if either party acknowledge they don't want to hurt it with a shutdown, they would give you

permission to go buy stocks. the biggest obstacles are both man-made. that right. this market will go down because of what people do, not because of what business does. the president can say if he sees chemical weapons used again, he can strike the presidential palace, the pentagon, all their airbases, cruise missiles, unmanned drones. would be the first rally if that's what happened. the president and the public will agree, no matter what, they prevent a shutdown. that's how we go to an all time high. if we choose to go it alone to damascus because of a line in the sand, they can't use chemical weapons, things go awry, you want to short the market. you get the big september shutdown in washington. you shut down the stock market with it. probably another 5% decline. one man made scenario, we go to all time highs. another man-made scenario, the bullish current has common sense

behind it, typically, it can produce more jobs. the bears has little support of the economically deaf politicians in washington. to make matters worse, the fed has burned down the gauntlet. so if the war and the government burned down, ben bernanke is take, himself out of the risk. interest rates can spiral higher. what do you do in that environment? that's easy. i think it's a recipe to stay on the sideline, these macro forces would move us around. i'd rather stay in the bay, not take my chances. we are facing man-made events. the men making them and women do not care about the economic impact of their decisions. they simply don't take them into account. they don't take your job into account. neither party in that environment. but that, well, in that environment, that needs to stay planted firmly on your shoulder until either stocks come down or

we get a resolution on both. not one. but both the budget deal and syria that pleases the bulls. to me, that's a tie that since we don't have a single lifeguard, sounds like shark infested waters to me. let's go to joe in oregon. please, joe. >> thank you, mr. cramer, for taking my call. >> you are quite welcome. >> caller: i was wondering if i should pull back in stock or wait now for vodafone. >> people presume, if i get long, i got to buy that. tomorrow will be to quote with the wend another day. now i go to manny. please. >> caller: hello, jim. thank you for taking my call. i'd like to have your guidance regarding yelp. >> yelp? >> caller: it's out on july 31st. i see that it has been going up.

it came down to the upper 40s, it's inching up in the lower 50s range. should i hold or sell? >> you have the greatest revenue growth of any of the companies i follow. so therefore, indeed, an expensive stock, it will go higher. that's the gist of the questions. it will go higher. our own worst enemy. that's right. these are man-made events. they are being done by people who do not care about what, how much you make, whether you have a job or not, and whether the stock market goes up. so in that environment, what do you do? you take some epoxy, you put it right here. you put some right here and you choke. "mad money" will be right back. coming up, rain or shine, cloud computing juggernaut sales force reported. are these bright skies getting stormy or is the sky the limit? find out in cramer's exclusive. and later, fast cash? wendy's has served up a 40% gain

in the past six months. it has revamped its menu. is this $7 stock just heating up or could protests over workers' wages cause it to cool off? plus, profit protection? taser has been on a shocking rise this month, debuting new tools to help law enforcement keep an eye on crime. tonight, cramer is talking with the ceo to find out if now is the time to buy or if the stock could run out of juice. all coming up on "mad money."" ♪ ♪

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>> the hottest tech trend out there perhaps is the cloud, a truly disruptive technology that is crushing traditional hardware

based tech firms as well as old fashioned software firms that can't compete in a cloud computing world. lately, we heard it has gone into the traditional business. it's synonymous with this theme, that is salesforce.com, crm for you home gamers. the service provides businesses with applications they need to manage sales, services, marketing, customer relations and much more. this stock is giving you a 676% gain since the visionary ceo came back on november, 2008, right in the midst of the financial crisis, he told us everything would be okay. they reported a 2% earnings beat off a 7 cent basis. revenues came in higher than anticipated. deferred revenue up and the company raised its revenue guidance for 2013 4 billion or more. the co-founder, chairman, ceo, salesforce.com, find out more about the quarter and its prospects, mr. benioff.

thanks for coming on the show. >> thank you for having me. >> we see accelerating growth, accelerating cash flow, your guide, too, all the way up to $4 billion. what happened this quarter that seemed to accelerate versus the previous quarter? >> well, it's an amazing time, jim. the numbers are just spectacular. and it was only a few years ago, jim, i was on this show telling you we will do our first billion dollar a year. i can tell you, the next time we speak, we will be doing our first billion quarter. that's phenomenal. >> is that because you did a huge number of the large deals, a japanese deal or is this a past niche of many size deals? >> well, jim, revenue rose 31% from a year ago to $957 million and in terms of revenue, it grew faster at 32%. jim, no other software company of our size is growing faster. these numbers are spectacular and i'll tell you what is

driving the growth. number one, we are number one now in sales. that is our sales product is number one on the market place. that is a huge and critical market and enterprise software. we are also number one in service. customer service and engagement solutions, we're number one, as you know, we bought exact target last quarter. makes us number one in marketing and being number one in sales, service and marketing, that's the driver for this phenomenal growth we are seeing today. >> in your last quarter, you are always a competitive guy. i love that about you. you talked about big wins against oracle, baxter, direct tv, ing, national australian bank, ntg, virgin, and then just a few weeks later, you signed a deal directly with oracle. is there the end of the oracle back and forth? are you guys now partners everywhere? >> well, absolutely, jim, in the quarter, we announced the major

alliance with oracle corporation, where we agreed to unite our clouds as you know, oracle has had tremendous problems getting into cloud computing. they've had a difficult time getting any type of market share at all in the cloud computing marketplace. so we agreed to use our brand luster and our leadership to help accelerate them into the cloud, and we're delighted to have this great new relationship with oracle, and as part of that, they announced they will be using salesforce.com inside oracle corporation. so we're delighted to replace their existing crm solutions. >> so the idea that people are stealing from each other is just not true? there is word that one of your people wants to be the head of crm for them, this kathy fitzgerald, that stuff is just gossip, it's not real? >> well, our industry does definitely tend to be quite incestuous in terms of moving back in forth. oracle's head of sales keith block just became our vice chairman and has taken over our distribution organization. we couldn't be more delighted to

have a 26 year veteran of oracle now running salesforce.com customer facing operations. >> mark, one of the things i think people are fascinated by, you can help us with is this hacking. who got hacked, who didn't? new york times got hacked. they went after twitter. they didn't get it. you were directly involved with twitter transactions, did they stop this hacking? >> jim, that's really not an area that we are involved in, honestly. you know, i'll give a perspective on cyber security overall in our industry. there is no finish line when it comes to cyber security. security is kind of a highly evolving, never ending, highly in flux state of technology. you will continued to see a wide variety of events across the world as the cyber security environment changes and continues to unfold. >> well, is that something you should be a part of your suite,

your number one market, number one service, people would trust you because it's hard to get ahead of the bad guys? >> part of what we do, jim, we work with our customers very closely. we provide a solution as you know that is all encompassing. we take on these issues, the requirements for our customers to be reliable, to be available, to be secure for their sales, service and marketing and customer solutions. that's our job is to make our customer systems secure, and we do that for the largest banks in the world, insurance companies in the world, media companies in the world, and, in fact, just this quarter, salesforce.com was really excited to win a major new relationship with sysco, the food company. as part of that, you probably know sysco is a major sap customer. we were able wrap sap and take over the customer relationship management functions and become their standard for crm at sysco.

>> it's good you mentioned sysco. which is adjunct, does a lot of restaurant service. i was thinking, mark, and wanted to spend actually a whole show on this, but how have you re-invented retail? when i go to your site, i see many retailers, this was the first quarter on all the conference calls, they talked about customer relationship management. many of them are you. walk us through how you have changed the face of retail in the world. >> jim, i'm so delighted that you are asking me that question. i do think there is an opportunity for retailers connect with their customers in a whole new way. i'd like to tell you about two incredible stories. one, we have closed an incredible exciting transaction with one of the world's most iconic brands, louis vuitton. they are revolutionizing the stores around the world. they have an incredible new mobile client telling app, powered by sales cloud, written

in concert with salesforce.com with more than 3,000 of their sales associates having all the key customer insigts, capability social media, everything at their fingertips. it allows them to develop that right at the entry of the stores. in addition to them, we've talked about this great retailer, home depot, salesforce.com took our relationship to a whole new level. we have a tremendous relationship with frank blake and his team. we're looking to completely rebuild how home depot does business as well. these are two retailers on different items, different sides of the spectrum that gives you an example that every retailer is transforming how they do business. they have to. >> i just think it would help us also to walk us through what you do with yelp. there is an example where they get a lot of lead, what they do with these leads depends on salesforce.com software. >> i love yelp. i love jeremy, i think he's one of the best ceos in our industry.

i'll tell you, the key to yelp is not just that they have a world class capability on the internet, but behind yelp is a world class sales and service operation. jeremy has the ability to reach out to retailers all over the world and to sell him, sell them the ads, the products, the capabilities to have a presence on yelp. that's an incredible direct presence organization that's driven by salesforce.com and we have been really thrilled to be able to work with jeremy now for so many years. >> one of the things that people continue to bring up is that lately, if your stock doesn't move, that means you will have a heavyweight problem with stock options. your stock up very big after the close. i can predict it will go up for a long time after this quarter because it's a good one. does that put an end that somehow you can't pay your people, the stocks started going up? >> well, that's never really been something that's been on our mind, jim. what's on our mind is growth. we are trying to achieve and

right to your very first question, that accelerating revenue growth you see with salesforce.com, we are on a path the get to $10 billion in revenue. there have been very few software companies, can you name on your right hand, that have been able to cross that barrier, namely, microsoft, oracle and sap. we want to be in that company. we want to be a strategic provider to businesses all over the world to help them automate their sales, service and marketing organizations. now, to that point, because our revenue has been on such a tear, of course, our market equity has been able to keep along with that. it's been an important part to attract talent. >> next big event. dream force. we expect to see and some people who are unexpected? >> jim, it is going to be one of the most phenomenal events ever that you can find out about it at dreamforce.com. it is going to be the world's

largest technology conference over 120,000 people attend in person. millions more will attend online. we will have phenomenal key notes from world class executives like marissa mayer the ceo of yahoo, cheryl sandberg, coo of facebook. green day will be playing the concert. their first ever private gig, really exciting. so we couldn't be more excited about dream force. i hope that this will be the year, jim, that you come. i'll tell you, it's a phenomenal experience. it's a door to the future. you can really see by the hundreds and hundreds of companies that present there, the technology that's coming and it helps you navigate where your company needs to be to by getting to dream force. >> mark benioff. thank you for that invitation. >> wendy's has served up a 40% gain. has revamped its menu with mouth

watering items. is this $7 stock just heating up or could protest over workers' wages cause it to cool off? later, profit protection. taser has been on a shocking rise this month, debuting new tools to have law enforcement keep an eye on crime, tonight, cramer is talking with the ceo to find out if now is the time to buy or the stock could run out of juice. all coming up on ""mad money.""

>> i have been scouring this market for stocks you can confidently buy in the next round of weakness. it might seem like i'm being too cautious. the fact is, until we get what we are doing with syria out of the way, you got to consider the stock market to be a dangerous place and one that could go lower. but when the next assault comes, there are some stocks i believe are worth buying and buying aggressively. which ones? let me put it to you this way. it's good to be the number three. left for dead stocks that come back for vengeance, turn around plays have a long way to go before they're done going higher. i found not one but two turnaround stocks. they have so much in common. it's pretty amazing. i'm talking about rite aid symbol rad.

third largest drug store chain. things are percolating there. wendy's, the number three burger chain. rite aid and wendy's are are classic third wheels the two largest competitors. they're large stocks. both companies had hideous balance sheets, rite aid in particular was called in question, yet now they have started turning things around. at this point both turns, they're undeniable. wendy's rallied 62% on the comeback. rite aid is rising 150% for 2013. it's been practically a straight line. both stocks have more room to run if you are patient. the good turnaround story is something that can transcend a slow economy as what's happening within the company internally not necessarily in the larger firmament. why am i such a believer in

these two single digit stocks even as one time i didn't like them? why don't we start with wendy's? to borrow a line, where's the beef? okay. at the end of 2011, one activist investor we know is worth following, nelson peltz, he previously was the chief operating officer of yum brands. they embarked on a massive turnaround theme, dramatically changing the balance of company owned versus franchise locations. they sell higher quality fast food offerings and indicating the cost conscious with a much cheaper value menu, like saks meets tj. the two-tiered menu lets wendy's compete while also competing on price with burger king and mcdonald's. the big thing is the remodeling of stores. you need to understand this is a 40-year-old brand, the average age is 20-years-old, starting

two years ago, they began to re-image some of their stores. i want you to take a look at what a new modern wendy's location looks like. they got to remake mine. i got to tell you, mine is so tired looking. i love the food. this is electric. the company started by upgrading 48 stores in 2011. the sales are at least 25% higher than before they were remodeling. doesn't that sound a little like what happened to afce? popeyes? that's a fabulous figure for wendy's, they plan to re-image, 20% of the chain's total stores. it's a multi-year runway of growth going forward. i like the salad bar, kind of like this, kind of a southwest effect, too. all right. anyway, that will give the stock a major boost. wendy's has a new menu that's fresh and healthier, including

yes, our friend, pal the bacon cheese burger with the pretzel bun, pure artery clogging genius. wendy's getting the social media, via twitter. hashtag pretzel love songs. that's right. they are doing less sexy, sensible things, under the red head roasters, a good brand, huh? in the old days, you had a coffee from wendy's. there are more structural changes. right now the company owns 22% of its locations. through the second quarter of 2015, wenty's plans to bring it down to 15% to various franchise operators. they should give the balance sheet a boost. look at the incredible success of domino's pizza. notice that stock is creeping up again? on top of that, wendy's thinks it can open 28,000 internationally and double the

store count. i love that. plus, another side management is taking its lead from peltz, the company paid down $400 million in net debt, bringing it down totally manageable, they appreciate the amortization down five times that number at the end of 2011. wendy's reported in late july, results were really strong, average restaurant level sales hitting a record high of 1.48 million. the restaurant level operating margin is up, even though we all know food costs are going higher. stock is trading so not cheap. that's why i want that pullback. i think wendy's is perfectly certifiable in the market induced recline. for those of you who sympathize on what's going on today, even if you side with the protestors. it's not reason to pass up the money that wendy's will make you. your portfolio will care.

you can give only one, whichever you want, to a labor organization. now, how about this rite aid? now, let's get serious here. here's a company that's gone to zero in less than a year. last september, stock trading at 93 cents. wow. since then the company has risen from the grave. think walking dead or true blood, if you are feeling especially campy. now, has this chain of 4,615 drug stores done it? the turn began three years ago. it's taken time to gain traction. dramatically cut the sales and overhead. the company upped its overhead. the perrigo. it carries high margins as we know. we interviewed them not that long ago. the product is rising to 18.3%. i know you can pick up to 28% without profit. what else? just like wendy's, rite aid knows it needs to improve the quality of its stores. they tried to bring in the front end with a strong focus on

health and wellness and a greater emphasis on pharmacy-related benefits. they got to remodel my number. the company made their pharmacy better. 15 minute precipitation guarantee. these efforts are clearly working. at the most recent earnings report, it turned a profit for three consecutive quarters. then after the second quarter, after the third, no. i think the term is accelerating actually. back in 2008, rite aid brought in ken martindale the senior vice president for merchandising, marketing and logistics. they have been instrumental in this company's comeback. he understands what merchandising and customers want. it's a definite positive that promoted the chief operating officer. after all that, they have done an enormous debt load. they reduced the expense by $85 million a year. rad has limited bond maturities to 2019.

the credit facility maturity is pushed back to 2018. balancing won't be a problem anymore. they have earnings estimates, 18% growth rate. the multiple is expensive as walgreens. i think the stock is worth buying on any decline at all. wendy's and rite aid have risen from the grave. these are lazarus stocks, people. the turn around is real. you want to use any weakness to grab a piece of them. >> ken in florida. >> caller: boo-yah, jim, from lakeland, florida. i'm down about 10% on ibm. i'm wondering if i can recoup that money better somewhere else or keep it where it is. >> ibm rallies. you won't do it here. thing to is like the worst performing stock from delaware when that goes up. >> sell, sell, sell. >> something is wrong with ibm. they own extra growth. they don't have the growth. i think you should get out with stock. every now and then, comeback kids are what you want to look at the next rounds of weakness.

i like wendy's. i like rite aid, rad and wen, right on. >> just ahead, profit protection? taser has been on a shocking rise this month, debuting new tools to help law enforcement keep an eye on crime. tonight, cramer is talking with the ceo to find out if now is the time to buy or if the stock could run out of juice.

>> it is time! it is time for the lightning round. rapid fire calls. when you hear this sound the lightning round is over.

are you ready, ski-daddy? i will start with kevin in new york. kevin! >> caller: jim, boo-yah from bayside. >> i love bayside. doing great, how are you? >> caller: good, jim, i'm asking ability us steel. >> us steel? no, we don't like u.s. steel. we like timkin. we visited them last year. we think they've got gain. let's go to randy in alaska. randy. >> hey, jim, thanks for taking my call. >> my pleasure. >> and a big boo-yah from big anchorage, alaska. >> been there, i love it. go ahead. >> caller: my question today is about graco. it is two-fold, number one, is -- >> well, i like graco very much. it is doing great. i met a couple times on "street signs."

i think they do a terrific job. angelo in new york. >> jim, i got a question with the hurricanes we have been having in the northeast. i have a company silver prescription, an outage detection system. >> if you play that, mwr. a better play. john in florida. john. >> caller: john k in dunedin, florida. jim in the past eight months, i bought, sold, made some money on arena pharmaceuticals. today it dropped 5%. i'm thinking of getting back on it. >> this is a stock i didn't like at 9, 10, 11. people hated me. where are those guys now? they should be thanking me. no, they went away. they probably de-followed me. dave in california. >> caller: hey, boo-yah, jim, from california. >> boo-yah, dave. >> caller: jim, what do you think of stewart information services spc? >> okay.

i think i'm going to see you and send you to radian. i will reiterate a good ruling in washington, rdn going to 15. that's the one to beat. tim in virginia. tim. >> caller: hello. >> yeah, you're up. >> i love your show. i love -- my question was about cummins engines. >> cummins is going down a few points, don't buy. buy, buy, buy, it's a little too expensive. if it comes in in the next sell-off, that it for me. tom in new jersey. tommy! >> caller: hey, jim, thank you for taking my call. >> you sound local. >> i wanted to ask you about pfizer, pfe. i hear that's a -- >> pfizer is okay. i will never say no to pfizer. i think it's fine. my charitable trust likes glaxo

smith-kline. they have a lot more in the pipeline. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by t.d. ameritrade.

>> sometimes the story of individual stock can be so strong that it totally overpowers the weakness of the broader market. that's especially true when it comes to more speculative names like taser international, tasr. the $600 million company is synonymous with stun guns for what it's famous for. in the last three weeks where this tape has been real ugly, this stock is up some 37%. why? back on august 12th, you learned judge scheindlin ordered cameras in precincts where the city's stop and frisk policy, they asked to reduce complaints by a whopping 89%. this could be a huge catalyst for taser, which has rolled out the evidence management platform

evidence.com, kind of like salesforce.com that allows law enforcement agencies to keep track of digital evidence and video. the latest smart weapon comes with its own video weapon and locks every single thing the taser does with it. the end of july, it was solid. they have a tremendous potential to go overseas. it has been slower than in the u.s. plus the company is riding domestic replacement cycle. there is a lot to like here. involved with litigation. are we too late? let's check in with rick smith the co-founder and ceo of taser international, find out more about his company. >> good to see you. >> the last time you were here, you had a taser in your hand. this time you have something along your neck. it seems like an interesting product with police. >> it is. we are focused on police transparency and doing it with video. >> controversy meaning there is lawsuits because of what happened may have been unclear? >> yeah, in the u.s., the law enforcement spends about $2.5

billion a year on defense payouts. we have seen in some studies cameras drop it by 90%. >> how does it work? >> i'm wearing maxon flex. i have a camera and it's paired to a smartphone, in this case, i'm an iphone user. so basically, it allows an officer to wear this and record their interactions over the course of the shift. when they are done, they can go into the app and pull up previous things they recorded, they can tag it, basically do their work right there. then they're done. they move onto the next call. you don't want an officer at the end of the shift to have to go back and sit at the computer, naming files, oh, which was that? i did ten calls today. ltght there bang, tag it. label it. you are done. >> evidence.com you have to store all that? this would take huge warehouses if you had to store it in a server yourself or a disc. >> there are police departments that have warehouses full of vhs tapes still. so there is an opportunity for us to leapfrog all this and put them online. when was the last time you created a cd to send pictures to

grandma of the kids? in law enforcement in charlotte-mecklenburg, the city is spending hundreds of thousands on our cds. charlotte is a big mover. >> i read charlotte would be the kind of city of this, judge scheinlin ruling. i have to believe given the products when that judge made the ruling august 12th, it could be good, certainly a great prospect for taser. >> what it did, it put this onto the national stage. big agencies like new york. it's a battleship, it's huge. it takes time to move and adapt technology. all those thousands of smaller agencies are starting to move in this direction. >> if you wanted to drill down about what the real needle mover is, it is still the taser weapon. video is not that big in terms of actual revenues. >> taser is the cash generating machine in business. video and the cloud, that's the real long-term upside. you know, basically, we're

connecting the public safety sector to the cloud. we're the first mover, we're four years into this. we built the expertise, we have thousands of agencies on the system now. the question now is when do we hit a tipping point where it scales with the paid service with the video. >> when you have an account using a taser, how easy is it to convert this other product? >> you know, it takes some work, it's introducing a new concept into law enforcement. what really helped us is when the federal government adopted a cloud first policy. it gave everybody the green light to use the cloud like every other industry. >> i have been waiting and waiting. a lot of countries don't like the police to have guns. what's the lowdown here? you have to go out in your international sales force? >> it's a part of that. in fact, we're investing heavily in a european presence. a lot of it is just big agencies. they tend to organize on a nationwide basis. we see a lot of opportunity there. we got to continue to execute. >> do you think that your sales

will be responsive to the fact that a lot of city governments have gotten more liquid? remember, we are coming out of a recession. the city governments cut back on even police, are those budgets rebuilt? >> yes, absolutely. three years ago, like everybody, they were hiding under the desk. they didn't have money. now they're coming out, realizing we haven't upgraded our equipment in years. we think we are on the front end of a capital spending cycle of city governments. >> i think you are, too. if you had to put the greatest tackles, it would be the cities have money. that's rick, he's the co-founder and ceo of taser international. in terms of interesting stories that, have multi-year payouts. i think taser is one of them. stay with cramer.

>> be careful what you bet against, it might not be what you think it is. that's what people were taught about zillow. it seems to me anybody that has bought a house is always on zillow. find out how their recent home purchase is. how is it doing? has it gone up in value? it is a kind of stock quoteing service. i basically consider it real estate porn. right now the company is valued at $3.6 billion even though there is $150 in revenue and no earnings.

a giant real estate broker responsible for 26% of all residential real state transactions. realty is perhaps as high as $1.67 a share. it sells price multiple. it's valued at 2.5 billion. north of 60%. realty expects to see 70 to 90% growth sales. here's what's incredible. it's up 245% and change. how do you explain the dichotomy versus the young whippersnapper? how can the latter be so overvalued? i think it's because of the short sellers. 18% of zillow is short, the stock to trades. zillow is on the subject of overvalued chatter. shorts thinking it has to. after all, it is connected to housing. it's off since the big spike in rates. right, right, right? doesn't it stand to reason it's off, too? i think the shorts tried repeatedly to frame the story connected to a really fading business.

what belongs, those who raise the stock are growth hounds who love zillow, linkedin, yelp, because they have subscription and ad revenue. zillow is no shorter than linkedin. yelp is up. the shorts didn't know what they were betting against when they went after zillow. now they have to scramble to bring in the short conditions the secondary come and gone t. real take away here, like i tell investors, to know what you own. short sellers, know what you are betting against, they bet against the hottest play on earth. they got it wrong, they're paying the price for the lack of understanding. stick with cramer.

>> all right. salesforce.com, why is it trading up? it has accelerating revenue growth. lot of companies peter out around $4 billion. this company seems to be actually getting stronger and growing faster. the last quarter was a hiccup. now, mark benioff said it was a hiccup. many people did not believe him. he got a lot of downgrades. i think we catch a lot of upgrades from the people who were too skeptical to fend it

off. it's a bull market somewhere. be ready on "mad money". i'm jim cramer. i will see you tomorrow!