me. company will be forced to do something even in peltz's absence. >> thanks so much for watching. catches again tomorrow at 5:00. "mad money" starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. i'm just trying to save you a little money. my job is to teach you and to coach you. call me at 1-800-743-cnbc or tweet me @jimcramer. sometimes making money in the stock market? it's as easy as figuring out

what goods what merchandise, people are actually buying in stores. so on a ho-hum day where the dow gained 14 points, s&p declined.06% nasdaq did 1.1%. let's see how we can profit from the clues this market gives us every day, including today. i want to start by revealing a methodology i developed a long time ago, when i was a hedge fund manager trying to figure out how to come up with new ideas that were off the beaten track but still had tail winds behind them that others might not know about. bullish tail winds that produced long term gains. as i mentioned friday's game plan we're in the heart of retail reporting season right now. many big retailers tell you what's selling and what's not. during this period i try to find out what trends stand out as investable so i can pick stocks within those trends that's been my stock and trade. and more companies are doing well versus the performance of

their own stocks. remember companies and stocks often diverge. that's often where the most lucrative ideas come from. so let's take a snapshot of the last 24 hours of earnings. try to put together a mosaic a mosaic that can give us some ideas that just might work out ultimately as stocks in our portfolios. to begin with last night we got a disturbing report from urban outfitters. here's a company with three chains people for teens, anthropology eclectic housewares and wedding dresses. and urban outfitters. urban had been experiencing a huge turn around. one or two of its divisions always seemed to be sputtering. late last neither stars aligned. the whole company began to deliver terrific growth firing on all three major cylinders.

that is until the last few weeks of the quarter. when anthropology simply hit a wall. it was a huge shock both to wall street and to the company itself which expressed ex strooems stream disappointment and surprise about anthropology's performance. with the stock down 15% today, it's obvious investors have totally turned on urban and given up on it. but anytime a stock's down that much in one session with a good balance sheet and long term equality management you do have to stop everything. you have to listen to the call do the work and figure out whether you might be looking at an opportunity when the smoke clears. first you need to ask yourself is the problem something that can be fixed or is it a longer-term structural issue that could last for more than just days weeks, months or even years. i am tempted to say that the problem at urban's anthropology division is temporary. because on the conference call management told us the problems in the division came in those last two weeks of the quarter and that things got appreciably

better in may. i thought the stock mitrally a little bit at the end of the day on that. there are real credibility issues here now. how come urban didn't see this disaster coming? why didn't they signal there were problems? we've seen two other retailers that disappointed last week in a similar fashion, kohl's and dillard's. they were both initially crushed. however, they're beginning to regroup. so my judgment? maybe kohl's and dillard's are the m.o. here. urban outfitters i think, deserves the benefit of the doubt. but the pattern has been you have to wait for the stock to settle down before you can pounce. that process can take more than a day. still, i think urban, which has a huge buy back will be in there buying stock with you if you take plunge along with the plunging stock. at the same time, i bet the company will adjust and get things right going forward. piet have distribution issues this quarter that seem quizzical to me. urban outfitters will be good to

buy later in the week. the company has lost a lot of faith on wall street. it could be a long slog back to its highs. next up we have walmart which also report add very weak quarter. unlike urban, the expectations here weren't that high. that said people did expect the relatively new ceo doug mcmillan to give us something to hang our hat on just a teensy weensy thing? nope. we got nothing. nothing. now, i think walmart stock can bounce from its decline of more than 4% today. but for the life of me i can't give you a reason to own it except it's come down a lot. that's not good enough in the suddenly hard market for retail stocks. then there's dick's sporting goods. the quarter, subpar. caused the stock to drop 5%. the shortfall was almost entirely caused by the company's golf-related business. all well and good maybe, right to get rid of it? huh-uh. en like urban outfitters i don't see any possibility of a comeback.

you own sporting goods we don't need dicks. i'd rather have you buy nike or take a shot on under armour which is going down in part because it's valued as a domestic play and people like the international stocks. nike is much more international. now for retail that actually did well, we've got t.j.x. here's a company with a terrific mix of t.j. maxx and housewares from its sucks if home goods chain i like to shop at. i like everything i heard. the problem here is so did everyone else which is why the stock rallied $1.93 or almost 3%. that gain today almost makes it too difficult for me to recommend it at these levels since the upside may have been stolen by today's action. what was of note here which had to follow a was that home goods division orders well for the stocks like home depot, which also reported today. now, the stock i call the despot, home despot because of its power in the industry delivered startling earnings. an amazingly good quarter. it immediately trended higher.

but then really some hideous profit take came in home depot stock ended up being clobbered. causing down nearly $2 in 112. this freaked people out. i talked to a lot of portfolio managers. they were aghast at this. last friday's game plan home depot was indeed priced for perfection. unlike almost every other retailer except for -- almost every retailer home depot truly was priced for perfection. it gave you perfection. but when things are already priced on perfection even perfection is not good enough. let's step back and look for larger themes. we're trying to come up with an investable idea from all this melange, all these different stocks. home depot. what did they tell us was good? tools especially power tools. indoor and outdoor garden equipment, decor, lighting plumbing appliances. they all did well. despot breaks down pretty minutely what's selling well in the stores. it's an amazing conference call. you got to go listen to it. you go and listen to all the

stocks where these themes could be relevant. i checked masco, kitchen and bath. 52-week high. like tjx everybody knows about it. i can't give you any insight. i looked at whirlpool for appliances. it's high. then again i was on that conference call not that long ago that they reported. it was miserable. then i hit up stanley black and decker. and i have an aha moment. dropped less than a buck from its 52-week high but dominates the tools and power tools business. when home depot says they like tools there's a couple of guys in there. but stanley black and decker. here's something i used to hate about stanley black and decker they like. it's got major european exposure. europe is turning back. business getting better. it's a positive now. we know not just from home depot but also from tjx, people are spending money on their homes. we aren't making a decision based on just one store. don't forget stanley black and decker reported a remarkable quarter not that long ago.

now we have to ask, is this supported by reportable data? housing starts were at a seven--year high. we also know from home depot's conference call that household information is beginning to grow again perhaps as member as 1 million new households. that's a huge deal. we've been stuck around 850,000 for ages. we haven't been creating new people new families. home depot's brilliant cfo reports if you look at people between the ages 18 and 34 nearly a third of them are at home with their parents. if they were all to leave their home nest, like my nephew thank goodness she said. that's 4 million households to be created. i'm excited about what the future may be for our business. house formation has been terrible in this country for a long time. now we add up the reports. apparel seems too hard although i'm willing to play urban outfitters for bounce later this week. other categories didn't jump off the page except for hard way.

we've got a pure play. the bottom line we've got an idea people. i would buy stanley black and decker if it goes down tomorrow before lowe's has its conference call and tells us tools are selling well. if lowe's is strong i might shuttle back to home depot itself. you can reverse again given the brutal strength and late may selloff. especially if we catch a scaredy cat downgrade from some analyst who takes his or her cue from the action. as so many lamely tend to do. peter in illinois, peter. >> hey, jim. with the european market being bullish, shall i sell my 100 shares in barclay stock? barclay's bank? >> i'm not going to fight that. i'm not a big fan of barclay's to be honest. it's moved up but not where i want to be. if you want to be in bank you want to be in the bank that warren buffett likes, wells fargo. don't care. i bank with warren.

duval in new york. >> are we on mr. cramer? >> we are. >> in light of the recent drop of nearly 20% in biotech, do you think it's a good time to turn west? >> i don't know man. you know what i'm going with here? i'm got going not with the ones that are down but the ones that are up. i don't know if you caught today, a milestone was reached. a stock we recommended at five in our first year of this show closed at 504. that stock is regeneron up from 5 to 500. it ain't done. i go with regeneron. look for the goods? today is the day to evaluate big market trends. i'm here to help you figure it out and spot some sweet deals. hey, where was this when i needed it a couple of weeks ago? "mad money" tonight. biotech up nearly 40% this year. can this united therapeutics? keep the healthy gains alive? i got the ceo. then twitter has put investors on a wild roller coaster ride.

should you bother with the stock or is the risk of another disappointing quarter worth the potential reward? american airlines. summer travel season. can it put some wind beneath the airline's wings? stick with cramer! don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send us an e-mail or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. what's ahead for health care titan johnson & johnson? from pipelines to patents and new challenges. before the ceo talks toon lifts, he talks to us. "squawk box" tomorrow 6:00 a.m. eastern on cnbc. you have to wear this thing?

♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?

there is an ancient rhythm... [♪] that flows through all things... through rocky spires... [♪] and ocean's swell...

[♪] the endless... stillness of green... [♪] and in the restless depths of human hearts... [♪] the voice of the wild within. after the vicious selloff of biotech a few months ago this quarter has turned things around. down only 4% fritzom its peak. united therapeutics uthr which has rallied nearly 40% year to date. a company that develops drugs to treat the unmet medical needs of patients with chronic or life-threatening conditions. they have four drugs on the market, all of which help treat pulmonary arterial hypertension.

the company's got a major pipeline cardio pulmonary diseases, monochromal their nas fight carnes and antiviral drugs. united therapeutics reported in late april. they reported jai began ticks ticks . -- since then it's been making a big comeback. at $178 it's still more than $10 off its high. and given that the stock trades at nearly 15 times earned run estimates i have to wonder if it's a bargain. tonight we've got a chance to take a closer look at dr. martin rothbod of united therapeutics to find out more about the company's prospects. welcome to "mad money." good to see you. we've had one other company like this. i just want to gave little bit of background. your company basically started as a mother's race for the cure. >> that's true. that's true. our youngest daughter developed

pulmonary hypertension. there were no medicines approved for it from the fda. she was going to die within three to five years. fortunately today she's 30 years old, sheath healthy and our medicines are helping thousands of other young ladies too. >> that's an amazing story. it wasn't like you were a biologist, you had worked at sirius satellite. irwas head of sirius xm satellite communications. but when your youngest daughter gets this kind of a diagnosis, i was going to stop everything i did and save her. >> now there was something on the market but at the time it seemed like it was worse than the actual disease in terms of how debilitate your daughter. >> the drug had been approved you had toin fuse it into your blood vest tells 24 hours a day 365 days a year wearing a pump that had to be worn in a fanny pack covered by ice. our latest drug approved by the the fda is a pill that you just take either two or three times a day depending on the severity of your illness.

and this pill does the same thing that whole big pump did. >> this is not a niche area. >> it's called a rare disease but still there are over 30,000 people in the u.s. alone with this. >> how are you finding the people who use this? we want to mention this. last week we met with the people from ibm who have watson. they told us one of the different things is people don't necessarily at the doctor level know what they see. how do you find the people diagnosed and hooked up with those patients? >> it's a great question, jim. one of the things we've been doing is helping the patients association. pulmonary hypertension patients association. we've given them grants so they can develop peer group counselors and support groups throughout the country. so all of this patient-centered advocacy, sort of like hiv back in the 1990s. >> right. >> has made the pulmonary hypertension patients some of the most aware and most activist of all the rare disease patients. >> okay. i don't want to just pitch into

that because you've got other drugs. the cancer-related projects seems like a pipeline that's not eventualed in this stock. >> it actually is not, jim. and i think that has missed people's view because there's so much attention on united therapeutics as a pulmonary hypertension company. we got approval from the fda for the first drug they ever approved for neuroblastoma an ultrarather paid tick cancer. no medicine had ever been approved for it. that drug has been approved. i expect that drug will do at least $100 million a year. >> that's definitely not in the stock. when i tried to do my background i went to your web site. at first i thought, okay, well this is -- maybe i just put it in wrong. maybe i got to sotheby's or a modern art gallery. you don't want your company to look like the other companies, either, do you? >> jim, you're very charitable. some people come to our web site and thought it was hacked. >> but you don't want to be the pfizer, the bristol-myers.

>> we pride ourselves on being different. our mantra within our company is to identify the corridors of indifference where the pharmaceutical companies don't go and then run like hell down those corridors. so we've been able to generate gross margins of 90% and very successful penetration of our disease markets by not having the huge overhead and baggage and bureaucracy of the big pharma. >> one of the things on the last call that was confusing was like the analysts i think you don't report in the traditional way. and as a fire side chat they was on where basically you're just saying look, guys, you don't know how to look at my company. my company is we are getting patients per month. that's how you should look. the numbers were pretty stag gathering erring you recruit every month. >> we have a lower-priced drug and higher-priced drug. lower-priced has two-thirds market share among the pulmonary hypertension patients. the higher-priced drugs is adding 100 patients every month. this translates to a growth in the revenues of $100 million per

year growth year after year after year. that's our high-priced, high-margin drug. >> some people were talking about a patent cliff you have to get over in 2017. >> our patent is good until 2017. but that's for only one of our four drugs. so that affects the revenues only affect one drug. furthermore, with regard to that drug that has the patent cliff, we have a litigation going on on that patent cliff that we believe the patent life of that drug should be good until 2029. >> how do we follow along with that? how will our viewers keep up if they buy the stock? >> every quarter we report on it, on the status of that patent litigation going on. but i think what will ultimately happen is that patent relates to the very first drug that we got approved back in 2002. >> right. >> that was a drug that had to be delivered subcutaneously. very difficult for the patients. most of our patients now take

drugs easterly drugs either orally or inhalation. when the litigation ends there'll be nothing there. >> it's a false fear. a red herring. >> that is terrific. dr. martin rothbod, chairman and sco of united therapeutics, uthr. a fascinating company. i'm glad we got to have you on. an inexpensive company in a group where the valuations are sky high. "mad money" is back after the break. coming up clearing the air. from hacking fears to rising fuel prices there's been some turbulence in the airline industry. but can the summer travel season help american airlines soar above this rough patch? cramer's got the exclusive with the ceo.

i hate to say it but too many people out there like the stock of twitter. it has too many fans. too many investors betting on big things happening in a very short time. too many speculators expecting good news any moment. how do i know this? simple. i read the tweets of people who follow me @jimcramer. they keep hawking twitter. either new advertisertive

they've just seen on the site of pair scope periscope videos. we got to get in. anyone who reads our bull tips knows they do like this stock. there are plenty of things that can go right. but the problems we see at least short term have to do with the stock's valuation on an earnings basis and a takeover basis. let's start with the takeover scenario. all the natural buyers here are very sensitive about how the stocks will fare if they make a big acquisition. management is worried about the stock. they fear taking on twitter's losses and decelerating growth. worried it's just a fad. suppose facebook decides to buy twitter. many people believe facebook is overvalued already as a stock. they wonder why the company wouldn't want to use its overvalued very expensive shares to buy twitter on a stock versus stock deal currently at 24 billion. especially since facebook spent

28.1 billion acquiring what's app last year. what's app had 450 million users when facebook used one fifth of its value to buy it. it's doubled its user base and fits perfectly into facebook's plan to have billions ofn ecosystem of its own. acquiring whatsapp has turned out to be a terrific move. ceo mark zuckerberg made it clear he didn't buy the company in order to lose money. he's got a plan. who am i to disagree with an acquisition that's produced the fastest growth on earth. twitter has relatively slow user growth. company had 302 million monthly years. twitter added only 14 million new users during that period. it is pretty much a snail's pace when compared to the growth of

the facebook covets at what's app. that wouldn't matter if twitter were making money but it's losing gobs of it. i doubt it would tolerate both slow growth and big losses. why would facebook pay more for twitter than what's app when whatsapp is worth more to them. google or apple would be worried these precise issues and what it would do to their stock. the only reason i keep mentioning yahoo! as a possible buyer, if you back out their investments in yahoo! japan you get a company that's literally worth nothing unless the irs somehow gets in the way of its tax advantaged methodology yahoo! once used for its ali baba distribution. what do you have to lose by buying twitter if your company is being valued at zero on paper? i doubt yahoo!'s ceo considers it that much of a compelling argument. if that's the case why own twitter at all? why even talk about it?

i'll tell you why. because i believe it can either figure out how to get more people on board and reaccelerate the growth or it can develop ads in order to start making money, or it can develop a premium system that will really make it money. then you would have interested -- tons of interested suitors. the stock would rally higher on its own. if twitter stock plummets to levels they would look attractive. too expensive to be acquired without accelerating growth or profitability but too cheap if management can figure things out. as long as you understand those parameters it's okay to own the stock which is how we feel about it. here's the bottom line. if you don't recognize the risk or looking for a quick win you'll end up being frustrated. i bet you'll end up blowing that stock out after what i fear can be still one more bad quarter that lies ahead. joey in mississippi.

joey. >> hi, jim. first of all i'd like to give you a big southern boo-yah! >> i'm liking that very much. i appreciate it. what's going on? >> i currently own a position in bido. i just want to know what you think about the company. and should i buy more? >> i'm not recommending any chinese stocks. periodically we go in the period where the chinese stocks are very unfathomable and we are in an unfathomable position right now for the chinese stock. i'm not recommending it. let's go to pat in new york. pat. >> hi, jim. boo-yah to you. congratulations on your winning -- >> thank you very much. >> i have your book. it's wonderful. so informative. >> thank you. >> it's helped us a lot. my question is about groupon. i'd like to know the status of it. >> they're splitting stuff up selling stuff off. in the end it seems like it's flotsam and jetsam.

there can be problems with twitter short term. i believe things can eventually go right. if you own twitter you believe it can figure things out or catch a bid. right now it is in no man's land. more ahead, including my exclusive ceo from american airlines. can a hot summer help it soar before rising gas prices? and can it help thousands of businesses win a presence online. plus the lightning round is just ahead. so stick with cramer! start your morning with the country's leaders start theirs. >> you all do this better than anybody in television. you guys got the morning scene down. >> don't miss out on the conversation everyone is talking about. "morning joe" weekdays 6:00 to 9:00 a.m. on msnbc. ouncer ] andrew. rita. sandy. ♪ ♪ meet chris jackie joe.

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the transports are having a rough time because commodities is meting with the airplanes. >> he was able to hack into computer systems aboard airliners 20 times and managed to control one aircraft from his seat during a flight. >> the transports in general have been pretty disappointing. after soaring for the past few years the airline stocks hit turbulence when the price of oil bottomed and started rising

dramatically a couple of months ago. all has been one of my favorites since its merger with u.s. airlines. about the industry was benefitting from declining oil prices, they had a huge tail wind thanks to the massive consolidation in the group. for decades the airline stocks were too dangerous to own because so many players in the competition ruinous. the u.s. airlines deal was the last in a long line of mergers that rationalized the industry made it so these companies could turn big profits. last year's drop in oil prices, a gigantic positive you can understand how american airlines was the best-performing stock in the nasdaq 100 last year. up 112%. with oil rebounding lately american now down 15% from its recent highs. the stock couldn't rally. at some point the airline stocks have become too cheap to ignore again. absurdly cheap given the sin

synergies. let's hear more about how company is doing and where the company is headed. welcome back to "mad money." >> thank you. >> you think the stock's certainly cheaper. i understand you decided to take your pay in american stock. >> i did. well you know, one, as a ceo i think i should be compensated in the same currency that you're compensated in which is our stock. >> okay. >> second thing is, yeah. look. i think it's a great indication how the industry has changed. the fact that an executive is willing to accept airline stock as a currency to be paid? >> inconceivable. >> no kidding. i wouldn't have done it five years ago. the reality is now we have an industry that's a real business. i don't think there's any chance that the stock is going to be nearly as volatile as it's been in the past. i think it's a real currency. and i'm happy to be paid in it. >> one of the things that's happened in the last few months is that there are people who are talking about how competitions come back. we add spirit airlines some of the roots of competition, you know the reason i've been behind the group. the competition seemed to die down. is it coming back? >> well competition is good.

we're happy to compete. from the stock point of view we don't like competition but i understand. >> we're in a competitive business and we're good at it. we'll keep competing. i think a lot of what you're seeing and what's happening, fuel prices have fallen more capacity has been added. >> right. >> capacity that is in excess of the growth and demand. you're seeing year revenues falling at a time that -- i think somewhat in a catchup for what's happened. our largest cost has fallen some 30, 40%. it's not an significant change in the economics of the business. >> right. >> so some capacity is being added. not by us but by some of our competitors. and we will obviously respond to that. but we're not going to be the ones that are -- >> it's not going to be the old days where guys are slashingfares trying to get me in the seat. >> it's not the old days. this is nothing like the past when all of a sudden the industry would get a whiff of profitability and airlines would say i made this much with 100 airplanes.

i can make 50% more with 50 more planes. >> there aren't that many more planes out there that anyone could go amp up. >> it doesn't take much. demand's going to grow 2, 3%. like the economy does. you can clearly add more capacity than 2 or 3%. out competitors are doing that. i think next year you're going to see growth of something, i don't know 5 6% in the domestic. that's going to have a negative impact on revenue per asm. there's no doubt about that. it's much better than it's ever been. nothing like we've seen in the past when again when you'd see all airlines fighting for share. these are individual airlines making individual decisions. they're going to need how to compete with that growth but american is going to compete with them. >> let's talk about a specific problem american face that is you brought up frankly i'm not bringing it up. this tremendous reservation system consolidation that's ahead. what does it mean? >> it's a big deal. it's the last big piece for our customers. >> but it's huge right? >> yeah. >> these have dee railed mergers in the past. >> they've certainly slowed them down. or created bumps in the road

>> yes. >> at a minimum. bringing the other two reservations together is a deal. it's the last big requirement to become an airline. all the synergies we need. today we're american and u.s. airways and we can sell you a ticket on the two airlines. once we get this done we're all american. it's just going to be american airlines, going to be one product and it's going to allow us to get the synergy we need. we have to come bient reservations. we're ready for it. we've learned from what we've seen in the past. we've done a lot of things to mitigate it. we believe we're very well positioned. our confidence is buoyed by the success we've had so far. >> you said earlier this week you felt the mentality of the people at american have to start being more like the people at u.s. air operations or else you'll lose pass eng ers. >> what i said was that the american airlines product as great as it was had lost some of the focus on operational reliability. >> right. >> and u.s. airways we had that

focus. so i think it's a great -- taking the american brand and cachet and now adding to it, the u.s. airways operation and reliability focus we're going to do great things. >> how about strong dollar versus weak dollar for you? >> it obviously hurts us in terms of our revenues where we fly internationally but it brings down oil prices. which is the net effect of that's positive to us. stronger dollar means lower oil prices. it certainly means lower foreign denominated receipts. >> how about the network reliability measures. they're all going the right way aren't they for you guys? >> we're getting there. it's hard to bring two airlines together and still produce a reliable product. those things run counter to each other sometimes. but our team is doing a great job. really once we get through the reservation system where we don't have people struggling with two different systems i think you'll really see us pick up the operational reliability as well. >> we had a little clip about

hacking, guys getting into your systems. worry about it? >> we worry about all things. but that issue is not a safety issue. given the in-flight entertainment system is not connected to the controls of the aircraft. but we worry about them all and look at them all the time. >> at the beginning you said the competition could come back. what makes you feel the economy being better the fact that it's -- that people are traveling more? that it won't be ruinous. i know you said things are going to be better than the past. but when i hear that i'm still thinking a year ago i didn't see a lot of competition. how do i know that five times earnings doesn't go to four times earnings because the earnings are coming down and the stock's more expensive than we think? >> well again, i believe what you're seeing is a decision on the part of some airlines to grow next says of demand. none of them can possibly believe -- some airlines are talking about 8, 10% growth rate. they can't believe they have that kind of demand growth.

so what they must believe is that at these economics they can fly more than they used to fly. >> right. >> so look i don't think that's right. but again, that's a lot different than the path where we all took the good times to try and like kill each other. >> that's what i want to know. you have your allocation of capital. you can just stand there and buy back stock. that's what you've been doing >> yes. >> at five times earnings. a good bet for the economy. >> we think it's a best use of our excess cash. it's your money. that's why we return it to you. >> that's why i like the stock. always more candid than pretty much every other ceo which is why we love him around here. doug parker of american airlines. thank you so much. spotify's latest tune on the heels of its starbucks partnership. a dramatic new announcement from a top exec. what spotify doigs now to try to stream past the competition. "squawk alley" tomorrow 11:00 eastern on cnbc.

it is time! lightning round! are you ready, skee-daddy. phil in florida. phil! >> hey, triple boo-yah, jim. >> qaudruple boo-yah right back. what's going on? >> okay. excuse me.

considering the strength of the asset managers advisers et cetera i've been watching the great progress of lazard. and my question can we expect to see a leaping la zard? >> i think la zard is good. i was going over with brian ashberg. he's got la zard as a big winner. going to stay. i think you're in shape. troy in illinois. troy. >> boo-yah jim, from the windy city. want to talk about one of the big disrupters last year now turning into a roller coaster in volatility, lending club. good? >> i met with the people from affirm recently. i think affirm may have a better model than lending club. i think lending club has come down enough you can speculate it but i like the other guys. how about darshell in new jersey. >> boo-yah, jim. congrats on the marriage. >> thank you. >> solar city i see that and tesla stocks, buy, sell or hold? >> in the middle. tough to big out. i like the last quarter i

thought was fine. but that said i am a first solar guy. i know first solar's disappointed people but i prefer it more. eileen in florida. eileen. >> yes. hi, jim! >> eileen what's up? >> thank you for sharing your expertise with us. it's really appreciated. >> you're welcome. >> i am fromown huntington bank and planning to buy more. >> i like key more than hban. key, hban then third. that's my ordering of the ohio banks. dave in california. dave. >> boo-yah, jim, from southern california. >> boo-yah. >> jim, i've got a question about rainier ryn. i bought a bunch of it when it was higher. stuck about 25%. they had a nice earnings peak and they keep talking about this renaissance in home building. >> i think they're right. 1 million homes being built today same as 1960.

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someone asked why did we open that office in san francisco. i think because we had new ideas. had to meet new people. i met someone from the team of wicks.com when ways out there. an israeli web site development

company that specializes in helping individuals and small businesses build their own web sites. wix.com is a free platform that allows users to design their own web site including apps mobile features and come patibility. it makes money once its users decide to pay up for premium subscription which allows them to build a better site, ability to choose your own domain name band width and no more apps. late lit stock has been roaring i-reported a terrific report two weeks ago. raising its forecast for the second time in february. stocks falling nearly 14% that day. hasn't stopped since. all-time high today. can wix continue to run? let's dig deeper with the cofounder, chairman ceo of wix.com. mr. abrahami welcome to "mad money." >> thank you. >> i have to tell you it's one of the things why do we go 3,000 miles across the country.

we want to find companies like your company. your company is red hot. i don't even know but i have a piece of an inn. we use you. my innkeeper said, we use wix because it saves us a fortune. how does it do that? >> i think the thing about wix when you think about building a web site, your choices are either to go and program in it, java scape or to hire company that will do it for you. that costs thousands of dollars. wix is providing a different way. you go to our site select a template. wonderful editor allowing you to drag and drop similar to powerpoint. but you build a web site. the strong thing you can really take your vision your dream, and design it. we give you a lot of options to create great visual fantastic ways to express yourself. take your vision your dream and put it online. >> when winter to the site it had kind of interesting graphics movie stuff, images. but i know that site that we

did, my guy lou the innkeeper dee signed his in an hour. he didn't take advantage of a lot of these things. how do you end up getting paid though? we didn't give you anything. >> i don't believe you have actually upgraded to a premium site. that would be around 9 to $10 a year. in addition to that it is always the option to add more and more applications. for example, if you run a -- it's an inn, right? >> yes. >> so you can actually edit booking -- have the guests book their hotels there and their rooms per night. >> what does that have to do with you? do you get a piece of that? >> we don't take any piece of business. that's your business. the application is $9 flat a month for that specific application. the full working booking agent. interact with anything you need with ota for $9. >> that's how you've had registered users go from 8 million to 63 million in four years? >> we have over 64 million users. >> how do people hear about you versus the other guys?

>> there are two things. we do marketing. but more than half of our users will come because somebody told them about wix. more than half of our traffic is by people recommending wix to their friends. >> that is is a word of mouth story. >> it's half and half. we do marketing. but more than half of our user will come because somebody recommended wix. >> should i be using wix for my restaurant? >> absolutely. you can always hire a design for do that. but you can also do it yourself. >> i'm intimidated. >> well you can use powerpoint excel? if you can you're more than qualified. >> i can do that. i'm not a total idiot. >> sow you are more than qualified to use wix. and go to our web site. choose a template that you like. this is a good place to start. our templates are very flexible. you can change or replace anything you want. add the menu and racial ordering application. >> mobile is the way that people get out. they get off an airplane. they want know where to go. they're walking down the street and want to know where to go.

how does yours work with mobile? >> we have 9 million mobile sites to today. click a site suggestion we give you can customize it. a mobile site. amazing hdm 5. nine-million web-based site builder in the problem, today. >> if i get in a jam there is a human at the other end that can help me? >> we have support and a call center of course. >> how much does that cost? is that the same thing? >> free. absolutely free. >> the premium subscription business that seems to be growing here. it's up 51% year-over-year? >> it is. >> that's just again people realize i like wix, i want to find out what's they do? >> it's most of the time actually happening because people, they start to do something with wix. they learn the system. at some point they need to improve functionality. upgrade. think about it. it's a web site that opportunities like starbucks. that's super cheap.

>> how many sales people do you have? >> zero. we don't have anybody. >> i want this business model. is there a wix? if i went to wix, who's at wix? >> well engineers. we have a lot of engineers. >> in israel? >> we have engineers in israel in ukraine, we have engineers in san francisco that does call center and support and assist people. >> how does anyone compete against you? >> well if you look at the numbers, i think the numbers speak for themself. we're growing much faster than anybody today by a huge margin in our business. >> i have to call web.com. they're going to tell me how could you not have said we're beating wix? you just go head-to-head all the time. >> our growth is dramatically higher. >> your growth is amazing. >> and we're much younger. >> i was mortified when your person came up to me at the party. she introduced herself. i'm from wix. did you guys go public. i remember you became public. it didn't really do anything

initially. but now it's taken off. you got to look at this thing. cofounder and chairman and ceo of wix.com. no sales people and unbelievable numbers. what can i say? i city you city with wix. you stick with cramer. thank you. older son: father! he's doing it again! father: jebidiah, i told you it's dangerous! jebidiah: but pa, i'm planning my retirement! don't be afraid of technology. use futureadvisor. the award winning platform that analyzes your portfolio and recommends investment decisions to help you retire sooner. signing up takes minutes and the advice is free. join over 250,000 americans

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stanley black and decker and maybe home depot those are the takeaways. there's always a bull market. i promise to find it right here just for you on "mad money." i'm jim cramer and i'll see you tomorrow!

lemonis: tonight on "the profit"... -that was pretty good. -mike: [ laughs ] lemonis: ...a custom drum company can't find the rhythm to meet supply and demand. mike: our turnaround time is six to seven months. -lemonis: six to seven months? -mike: yeah. that's created a backlog of unpaid bills and serious cash-flow problems. chris: we don't have enough money to cover payroll for next week. lemonis: i mean, you're kind of closed. chris: yeah. lemonis: the owner and his right-hand man are out of sync. louie: the lack of communication, i think between chris and mike it's like -- it's just...exactly. lemonis: and the two brothers who started this business have split up... scott: what did i ever do to you? mike: i really don't want to get into all that. lemonis: ...causing a whole nother layer of crippling issues. if they can't fix their process and their relationship... mike: fixing the business and this [bleep] is hard enough. lemonis: ...they'll be forced to close their doors forever. mike: i can't take this.