that will get you donning, pete. that will get you done. >> born in san francisco, giants, giddyup. >> oh! >> i'm melissa lee. thanks for watching. "mad money," very big "mad money," from san francisco with from san francisco 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. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to teach and educate you. so call me at 1-800-743 cnbc or tweet me @jimcramer. all this week i'm coming to you from cnbc 1 market from san

francisco for our invest in america series where we're taking a closer look at some of the biggest names in tech and how they're changing the way we think and do business and live. it's an amazing thing. you know what? it's also a beautiful thing when the old economy and the new economy converge. that's what happened today when the averages with the dow jones rallied 113 points, s&p advancing 0.43%, nasdaq increasing. for much of 2016, that's not been the pattern. oils rallied, distinctly the old economy, or you had the tech stocks, the stocks that dominate our cell phones. but not today. today they coexisted. what makes this deelectricitiably bullish combination come about. two different stimuli. for the old economy, it's the price of oil. for the new economy, it's the price of innovation. let's start with the former. today we got oil inventories and once again they showed a downturn. remarkable given the glut we

know does exist. now, it's entirely possible that one day we'll find out that these 10:30 a.m. numbers we so prize are no longer an accurate read of the supply or the demand of oil. all the market cares about right now is the thermometer is flashing red hot with oil up $1, closing in on $50. it was almost 40 bucks a couple weeks ago. traders can't resist e kwalting that rally in oil with a robust economy, so they extrapolate. how about caterpillar, up wednesday again as people presume its business has got to be better, right? now, i do think that the recent asian numbers which showed year-over-year growth not that long ago at last justifies some rally that's taking cat to a new high for the year. up to $89.87. that's an amazing buck 91 gain or 2% on top of a lot of other points or they buy the stock of boeing, which increased $2.41 or

1.82%. that's a solid move given there's been negative publicity for the dreamliner flight. what.rails, union pacific which once again hit a yearly high, increasing $1.87 or 1.93%. now, i need you to understand this. you have to get that in each case of the stocks i just mentioned, these rallies are what we call animal spirited rallies. it's the animal spirits of the market talking. that's because do you know that all three, there is no new news on any of them. you know what, there's hardly any news of any of the dozens of other big industrial stocks that rallied today. in other words, the move can't be justified on conventional earnings. we haven't even had any reports. the season hasn't started. it's being justified by people willing to pay more because somehow, based on oil, they think things are getting better. what else happens when things are getting better? well, interest rates go higher, demand for money. what happens when that happens? the banks profit from it. so of course the stocks of the

banks had an excellent day. when the financials do well -- and here i'm even talking about -- get this. stop trades. i mean wells fargo? when even that stock goes up, then it's going to be a huge rosey hue for the stock market. it's what happens when they go up because it creates a terrific backdr backdrop. we know the banks have continually disappointed in the end, so please don't get too excited. i know i'm not. the reports are right around the corner for the group, and i do not expect good things. but every dog has its day. hey, today was the bank's dog day. needless to say the oils went up, and the oil stocks themselves are returning to level we haven't seen since mid-august when oil last looked like it was breaking out. the oils like the banks tantalize. when i say tantalize, because they tend to fail and they tend to fail because oil files at $50. why is that? pretty simple. do you know what $50 so many u.s. producers again to make a lot of money that the spigot that they can turn off and turn

on gets switched on. oil flows big in the country and prices fall again. it is self-fulfilling. i bet this time is no different. but how about that second economy? the new one. the one we came out the west to cover. now, here the themes are totally apart from the old economy. they have nothing to do with oil or interest rates or the fed. they have much more to do with data, reams and reams, trillions of pieces of data. and mining that data and making sense of that data whether it comes from the cloud or social media or mobile or iot. could they just call it sbnlt of things? is that hard to say? it's about using machine learning to find out what the data is saying. it's about using artificial intelligence to intuit what you should know about what the customer wants because these things aren't smart enough anymore. we got to use the machines to figure it out. or you want to put it another way. maybe one way that's more to the point. it's about trying to keep up

with or beating a giant, a colossus that happens to be 807 miles to the north of where i'm standing. it's about beating amazon. that's what i heard all day today. amazon, you see, is the one that seems to say one step other head of every company, trying to sell in the multitrillion dollar retail market. the largest tam out there. that's because amazon has the best artificial intelligence in the world. hey, if you like this, then you'll like that. if you like jim cramer and squawk on the street, maybe you'll like him for "mad money." that's like amazon, okay? how do you rival it? salesforce.com has made a strong case that this year's $171,000 strong dream gors force, that you can have the best mining and best tjs if you put your info on the sales force platform. how much do these companies prize and waunts more data? how hungry are they to pro accessory with what you know and how you know it and what you want and what you might want and when?

do you know that's the actual real driver behind all of this talk that can't seem to be skilled. i'm talking about the talk that mark benioff is going to buy twitter, the last big fire hose of data available, that isn't being interpreted or used correctly because twitter management isn't up to the task. how many times did i hear that today from different people? so will sales force buy twitter? i'm not a tease but not that much of a tease. mark rope-a-doped me when i asked over and over when i asked. and i think the company's even pondering of it, we're talking about a company spending $20 billion to buy another, so if he's looking at it, admitting to pondering has driven stock down 5.48% today as many owners of sales force, large mutual funds voiced displeasure at either the high asking prize or the declining asset that salesforce might be purchasing. how do you express displeasure

in the stock market? you sell, sell, sell. call it a trial balloon that the market shut down. perhaps an harbinger of a dumping of the stock that would occur if a $29 bid were launched. much more on this story later in the show. these are long term trends and today the companies that benefit from the plumbing of the oceans of data, chief among them amazon hitting another all time high today, up 10 bucks to breach the $400 billion market. bottom line, today the two economies cole essed and the market put on a darn good show. don't get too confident. soon we're going to get actual numbers from all the stocks and companies in these groups and when we do, i wouldn't be surprised if some of the big rally stocks today are not backed up by the facts of the company's result. amy in maryland, amy. >> i own 500 pre-split shares of rr donlely. could you please explain the three new parts and should i

hold or sell? >> well, the three new parts, this is tom quinn land's gold of brieing out a lot of value and you've got some very good parts including the old line publishing business, some data businesses. let's put it this way. i have opined on this many time. i think tom's got $20 worth of business tied up within that stock, and you got to hold on and let the pieces make the money for you. i think they will. all right. listen, the old and new economy converged today. it was a beautiful thing. but be careful. i don't know if it can last. coming up on "mad money" tonight, whether it's 500 million accounts at yahoo! or the legitimacy of the entire american electorate, high profile hacks have might say ber security number one for business. tonight i talk to one of the industry leaders. plus conselllation brands is buying another bottle in your liquor cabinet for $170 million. find oud more about the booze big shot in my exclusive. and is sales force ceo mark

benioff preparing this bid, or is it chimerical for twitter? we'll learn more about what brought 171,000 people to dream force. just ahead on our special invest in america, defining the future. stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. the world's most exciting technology... ...doesn't go on your wrist.

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narrator: it wasn't that long ago. years of devastating cutbacks to our schools. 30,000 teachers laid off. class sizes increased. art and music programs cut. we can't ever go back. ryan ruelas: so vote yes on proposition 55. reagan duncan: prop 55 prevents 4 billion in new cuts to our schools. letty muñoz-gonzalez: simply by maintaining

the current tax rate on the wealthiest californians. ryan ruelas: no new education cuts, and no new taxes. reagan duncan: vote yes on 55. sarah morgan: to help our children thrive. some companies, well they just don't know when to quit. take a look at constellation brands, the terrific alcohol company that's the world leading purveyor of premium wines and the third largest brewery in the united states. constellation stock is on fire because they have the rights to pacifico, some at bar san miguel, and they also mike my

favorite tequila. plus they are killing it in wine and craft beer. just this morning they reported another fabulous quarter, delivering a 12 cent earnings beat, taking the stock to an all time high. sales up 17% year-over-year. this is about the fastest growing packaged good company in the world, and it's gotten their by making shrewd acquisitions and then growing them and taking share in every category they touch. today they announced a for ray into the high-end whiskey business with the purchase of high west distillery. will they work the same magic? let's check in with rob sands. he's the president and ceo of constellation brand. mr. sands, congratulations on a monster beat in this morning's earnings report. >> thanks, jim. appreciate it. >> rob, i got to ask you, you did it again. you bought a company, this time for $160 million, that aa lot of people were questioning what are they going to do with whiskey?

but i have seen what you've done in terms of igniting a brand. can whiskey be as big as what you've done for prisoner mee ohmmy? >> yeah, i think that it can be. look, high west is a fantastic brand. the category, craft, bourbon, rye, one of the hottest categories in the business today. this is one of the hottest brands in the craft bourbon and rye whiskey category, and so if you take a look at prisoner, you know, growing 35% in ir, a. you take a look at mee ohmy growing 60% in iri. you caketake a look at casa kno play, 40%. we can use our sales and marketing expertise and our organizations and our distributor network to, you know, really jump start a brand like high west, which already has unbelievable momentum. >> all right. rob, let's talk about when you speak of momentum, july 4th is a big beer holiday. and from what you said today,

you won july 4th. how can mexican beers win july 4th in america? >> well, i guess that's america today. but, look, we've basically won the whole summer, right? we call it our 120 days of summer period and promotional activity. this is the most important period for us. you know, we have generated 60% of the entire sales growth in the entire beer industry over that period. so, you know, we're really the leader in growth. it was a terrific summer for us. we gained share totally across the board. you know, our fantastic craft beer, bell as point, very, very strong results during the period. corona, mow del low es pesial, pacifi

pacifico, the new 24-ounce can is the number one growth skew and iri of any new beer skew introduced during the period. so just terrific momentum behind our brands. >> let's talk about wine. i was in napa valley this weekend, and i saw what i thought was a very let's say mid-range price, 80 dd mee ohmy prisoner. you figure out the price point and you exploit it. that wine, below opus, above some of your other up brands. how do you price these things, and how do you know what sells in america? >> well, you know, obviously we know sort of where to fish as it relates to price points. in wine, it's been a terrific premiumization story with the consumer moving up towards more expensive products. so you take a miomi at about $20 a bottle that's really right in

the sweet spot of what's really hot right now, and you take a prisoner at $40 a bottle. you know, 91 points in the wine spectator this year, which means that it's extremely highly rated wine. you know, how do we price it? it really is a function of the cost of the product. it's about, you know, the type of grapes that go into it. and on these higher-priced products like miomi and prisoner, which are produced out of some of the most expensive grapes, they have a cost structure, and they're of a quality that warrants the price. so it really is about, you know, the quality and the cost and the delivery of that quality to the consumer that dictates what the price of the product is. >> well, rob, you got it right again. congratulations on an amazing quarter and the stock at an all time high. rob 157bds, president and ceo of constellation brands. good to see you, sir. thank you for coming on.

>> thanks a lot, jim. yep. >> "mad money" is back after the break. >> announcer: coming up, is the ceo of sales force planning a big acquisition? >> what my shareholders want, i'm confident of this, is they want me to look at every single company, pick out the best ones, and do the ones that are in their interest. >> announcer: cramer finds out in mark benioff wants in on the twitter sweep stakes when "mad money" returns. this car is traveling over 200 miles per hour.

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they've helped make our e-commerce so easy, and now we're getting all kinds of new customers. i know. can you believe we're getting orders from canada, ireland... this one's going to new zealand. new zealand? psst. ah, false alarm. hey! you guys are gonna scare away the deer! idiots... providing global access for small business. fedex. >> announcer: from humble beginnings in a san francisco apartment to today, salesforce is venturing into the tech of tomorrow. but will big deals and bigger rumors help it claim the crown in a consumer economy, or will the stock fall short? >> could there be a more momentous time to be in san francisco. we came out here for sales

force's dream force conference, the annual pilgrimage for all things related to cloud computing. this comes right after the company's $700 million acquisition of crux, a marketing data start up at the same moment when rumors are swirling that salesforce might be in the running to buy twitter. the twitter company has been hounding the company's stock. as i said before, i think twitter has the potential to become a valuable asset under a company like salesforce. that's not how it's run at the moment but if you look at twitter as a treasure of data, you can see how a potential deal might make sense at the right price, right price only. either way, though, a high-quality growth stock right now is getting slammed, and i think it's creating a buying opportunity. so earlier today i got a chance to sit down with mark benioff, the visionary co-founder, chairman, and ceo of salesforce, who also of course happens to be the ring master for the dream force conference. take a look. mark, why do 171,000 people

congregate each year -- this year the most ever -- for a conference? >> jim, this is our family reunion. it's our customers, our partners, are employees. we're all getting together to welcome each other home. this is a very important day in salesforce. it's when everybody is able to come together, share what they've learns, figure out what their path is going forward, and celebrate. that's what dreamforce is. oh, and give back. we're giving back in scale. >> one thing that i've learned from this trip more than ever is the people who can use your platform don't necessarily need to go to stanford comp sign. >> that is 100% true. you know there's only 1,500 programmers in the world and i think you tiched on sales force's secret sauce. we have this amazing platform. every year we add something new in that platform, to give our customers the power of the best computer science technology. first it was the cloud. then it was social. then it was mobility, you know. then it was i.o.t. this year we're adding artificial intelligence.

so all of these incredible customers are dgoing to have al the pours of machine intelligence, machine learning and deep learning right inside the sales force platform. >> let me ask you. this is the event, okay? and yet somehow it's gotten caught up with something that you could end, which is this notion that you've kicked the tires, twitter. you're trying to figure out whether to pay for it. and let's just end it and just talk about einstein. let's forget about buying somebody else. >> well, jim, you know the reality is that salesforce is a super innovative company. forbes has said one of the most innovative six years in the row, even innovator of the decade. innovation comes both organly and inorganically. we look at a lot of deals. in fact, we look at most every deal, but we do almost no deals. >> a $20 billion deal, would you ever say, our shareholders do not want me to go borrow a lot of money even if i have

partners. they don't want it, and i'm beholden. >> what ply share olders want is they want me to look at every single company, pick out the best ones and do the ones in their interest, and that's what we do. that's our strategy. you can see how well that's served our company over time. and if i was to address any specific deal at any specific time, it sets a precedent. then all of a sudden, i have to acknowledge every deal i'm doing, and as you know like just this year, we've done some amazing deals with demand ware and with quip and this amazing deal this week, crux. and the reality is we're going to continue to do amazing deals, but we do deals that are in the interest of our customers and our shareholders. >> but perhaps people don't understand what they need. as steve jobs said, i look at twitter as this. bobby kennedy once said there are those that look at things the way they are and ask why, meaning how come twitter is so bad. and other people say i dream of things and ask -- if we look at twitter, it is so bad. but if we look at it the wait

bobby kennedy. >> you know it's a great product. it's an exciting product. but obviously the business has a lot of challenges, very severe challenges. >> it could take the stock down huge if guys would just dump your stock because it's going to have a disaster quarter. 18, 19, maybe it's a price issue. >> maybe you should come in and run our mna strategy, jim. i don't know. but here's the deal. the reality is, look, all i can do is one thing, which is wish my good friend jack dorsey well. that's the most -- he is the ceo of that company. >> right. >> it's his job to make that a great company. it's my job to make salesforce a great company. >> can we wish sacha will because this leaked in. it seems like a tussle. he's a guy you told me i ought to get to know and now you're trying to get him to -- i don't know, linkedin, you're not crazy about what he's doing. let's change that right now. say, listen, i'm sorry. >> sacha, number one, is a good friend of mine. >> right. >> number two, you know, in our industry, we have a an old

phrase which is the enemy of my enemy is my friend. but i guess in this case, the enemy of my enemy is my frenemy. >> fair enough. >> the reality is -- >> you're cool with it. >> since microsoft has kind of announced linkedin, i'm cool with sacha, for sure, but some of his executives i'm not cool with because they've made some very aggressive statements about what they're going to be doing with this linkedin data, jim. it's amazing what they've said. they're doing things that are absolutely anti-competitive, and that's what i wrote on twitter. you read that. we did an op-ed on that. we brought that to the attention of the regulators because, look, if they're going to buy linkedin, it's a great company. we looked at it too. we would have loved to have linkedin. >> at a price. >> it had great deferred revenues, so it made it very exciting. but, you know, the reality is when you buy a company and if you are the largest and most important software company in the world, which microsoft is, or as our attorney david boyce sas, he says microsoft is different than other companies because of their size and scale,

shape, and position of power and mondayopolis tick characteristics that you have to look at if they're going to buy a company, what are they going to do with the data? and data is the new currency, jim. >> right. >> so they need to be held accountable. some of the things they said they're going to do with that data, i field might have been a little bit on the wrong side of the fence. >> that's fair enough, and you stated that on twitter, and you say it here. if it weren't for the twitter discussion, we would have been sitting here talking about einstein, artificial intelligence, machine learning and whether the machines are so much smarter than we are that we can't intuit the way they can. >> i think the most important thing with artificial intelligence is what we said first, which is that all these amazing customers, which represent hundreds of thousands of companies all over the world who use salesforce, need artificial intelligence to make their sales people better, service people better, marketing people better, to help them build more intelligence around their products. but they can't get there because of a block, and that is the people don't exist. but now they can because the

salesforce platform has that. >> but they exist at amazon. your customers need -- people need to be able to compete with amazon. are you enabling them to be able to do that? >> absolutely. our customers can compete with amazon. they can also have incredible experiences by building intelligence into their applications. they're going to be able to know, what's this great territory that i'm not in that i should be in? or why is this salesperson not selling more? or the salesperson may be guided and say, hey, you're not going to close that deal unless you e-mail the cfo today. and that's going to make for more productivity, higher revenue, higher market share for our customers because we are only successful if our customers are successful. that is what so exciting about how salesforce is architected. >> i went to the quip cafe. had to wait in line. okay. what is quip? >> well, quip is really the next generation in productivity. i mean we've all grown up on spreadsheets and word processors

and we all know what that is. but when was the last time that you got a spreadsheet or word processor in an e-mail? that's a productivity drain because as that travels around the company, you lose all the institutional memory. and customers are kind of looking at, okay, well, hey, i got microsoft office 365 and goog p apps, but i still have a lot of pain around my document management, especially around word processors and spreadsheets. can you help me? and we have deeply integrated quip into the salesforce platform again with our authentication and powering our customers and it is super exciting. i mean i've never been honestly -- i mean i'm really excited about demand ware, a lot of our acquisitions. i have never been so excited about an acquisition such as quip, and i'm going to tell you why. i just was on a three-week tour around the country. i hit the eight major cities in the united states. i met with hundreds of customers. i looked them one-on-one, and they reviewed our whole product catalog, and for some reason when we demonstrated quip to them, they jumped out of thisser seats. they just go right to the app

store, right to the google play store. they can download quip. they got going in the meeting and they saw the difference, and they started to get their companies on quip. it's incredible what's happening with quip. >> last question. it always seems like there's something else other than salesforce going on. last time i saw you we were talking about other than demand ware, that microsoft was going to buy you, and that was all northeaste anyone wanted to talk about. why is the narrative not just artificial intelligence, cloud, and making customers be able to connect with you? >> i have two major narratives and one is this is the age of the customer. you can see the world has changed dramatically. social, mobile, cloud, that was in your book. >> yes. >> i.o.t. wasn't in your book but next book. >> next book. >> and now a.i., next book. it will be in the next book. i don't think it's in the current book. >> no, it's not, but it will be. >> these will be the five characteristics. what does that do for customers? more revenue, more exitiveness, for market share, more

efficiency, more productivity. that's what everybody needs today. the second thing we do is the age of equality. we believe strongly in philanthropy, making the world better, fighting for people's rights. you know that we have a lot of lgbtq employees. they want to make sure we're looking out for them. we have a lot of women employees, more than ever, and more women customers than ever and we want to make sure we have pay equity, which means women are paid the same as many. we have a chief equality officer reviewing all of our quality programs. and the last thing we do is everyone has to adopt a public school. >> absolutely. >> so important in today's world. >> let's leave it at that because these are the things i know you care about because just doing great for your customers. >> we want to build a great company that's doing great things. >> mark benioff, chairman and ceo of salesforce, thank you. >> great to have you back. >> announcer: coming up, the social media storm continues. >> twitter would be complementary to many of these companies. >> yes.

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even though we all know that cybersecurity has become a major issue and a huge business opportunity, 2016 has been a tough year for the cybersecurity stocks. whole group got slammed beginning of the year, coming off another big meeting last december. in the last few months, the whole cybersecurity stocks group has come roaring back, in part because growth is suddenly back in style. take palo alto networks, one of the leading cybersecurity players that pioneered the next generation firewall. for years the stock was beloved. but then last december through past july, it got hammered. since then, palo alto has made a remarkable recovery although i don't think anything ever happened to the stock other than the company did well. shares are up more than 35% for the last few months. it only took a few days for the stock to bounce back and start roaring higher again. the revelation about the big yahoo hack has given palo alto

even more momentum. can this stock continue its recent rally or do we need to be more cautious after such a big move? let's take a closer look with the chairman and ceo of palo alto networks. mclaughlin, welcome back to "mad money." what is a great disconnect for our viewers at home, it's so clear not only are there bad guy individuals, there's ransomware, this problem is transcending any macrogrowth, and yet somehow we got caught up in the idea that maybe cybersecurity is hoe hum and we don't need it anymore, it doesn't matter. it couldn't be more wrong, though. >> i think cyber is going to be an issue with us for a very, very long time. things may ebb and flow about the number of attacks or nation states attacking or not right now. reality is number of attacks right now is growing dramatically across the board and nobody is going to bring them down. so the trick is how do you stop successful attacks, not the attacks themselves? >> well, i think that one of the things was a really good article

in "the wall street journal" about people yawning at the yahoo! tack. we talked about the idea that if we knew how little companies were spending on cybersecurity, maybe that would change our view. you told me many years ago the companies still weren't spending the way they should. has anything changed? >> i think the recognition of this has grown dramatically. i think people are willing to spend. spending has gone up. i think it's high now. it's going to continue to be high. that's my guess over time. it's not so much more about how much people are spending. it's how they're spending it. >> okay. >> there's a big difference between those two things. >> you are a platform company. there was a time when people spent piecemeal. that's not working anymore, is it. >> i think that's very clear. so the 25 years of security has been there's been a product to do one particular thing for one particular problem, right? people have no choice but to buy all of them, and then you put them all together. you've got a lot of complexity and you need a lot of people to try to get them to work together. so platforms like we have today

have just gone away from that approach and said let's build a way to work together with gives high degrees of prevention. >> proof point was on yesterday, a company we like like we like yours and we said they're partners of yours, which mean they sit on your platform when we hire you? >> there's a number of things that have to happen in security from an outcome perspective, maybe a dozen. the companies who are doing very well as platforms today have taken a non-legacy approach, and they're delivering on those outitems. we deliver on a couple of them. gary and proof point deliver on a couple. so what we're doing is working with the leading companies who are next generation companies like that to do integration of the technologies that the customers would otherwise have to do if they bought them. so we do it in advance so that these things are starting to work seamlessly together to give a real sense of fabric of how this should work. >> this is all well and good, but on the conference call, people were kind of amazed that

you went from 24% growth down to 12% and 13% projection. you're a cautious guy. then the stock came back. is that a reflection on the fact you already have 85 of the fortune 100 clients and there's not enough business and new clients to go around? >> for clarity purposes, that number you just said is product revenue. >> okay. >> so total -- >> that's important. >> total revenue growth, what we said is we would be in high growth, 30-plus percent at scale or billions of dollars there at scale for years to come. so what people are focused on the product side was the shift that's going on in how you deliver these platforms. a big portion of our business has moved into services. 65% of our bigs last year was in services. >> they still have to pay up front, right? >> that's why cash flow is so high. >> the cash flow is humongous, up 72%. election coming up. do we have to worry about being hacked? i felt after the yahoo! hack

that everybody is vulnerable. can someone rig an election? >> anything is possible. i think we're seeing the concern there, rightfully so -- >> it is a concern. >> yeah. any computer system is susceptible to attack. it doesn't matter if it's used for elections or electric grids, so everything is susceptible to attack. the question is what are you doing about stopping it from happening in the first place, and if it were to happen, how could you mitigate the damage fast enough? >> you've taught me a great deal and one thing i know is unfortunately the business is stronger than the world's economy. i'm glad you clarified. i think people got it wrong on the conference call. we got it straight here. this is the best of breed in a business that unfortunately is growing like wildfire. "mad money" is back after the break.

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>> announcer: lightning round is sponsored by td ameritrade. >> it is time! it is time for west coast lightning round edition of "mad money." you'll hear that sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." let's start with derek in washington.

derek. >> caller: hey, jim. how are you doing? >> i am doing well. how about you, derek? >> caller: i'm doing great. i'm calling about a dee bold. they've been down some since the merger. q2 loss. i wanted to see what your thoughts were of buying in on that? >> i got to tell you, we've got to have them back on because when they did that, we had them on. the stock has done nothing. let's hold their feet to the fire. bring back diebold. the stock does seem cheap, but that's not enough. sue in california. sue. >> caller: hi, jim. do i hold or sell glog? >> believe it or not, i was talking to -- i got to tell you, i am feeling more and more bullish about that liquefied natural gas market because of how much we have versus how much they need overseas. i think that rusty is right. steve in michigan, steve. >> caller: hey, jim. my question is on mgm international. >> man, mgm is one of my

absolute favorites. i've got to tell you i think that jim muir know hows to run a casino. it's tough because adelson is good. it's tough because steve wynn is good. but mgm is cheap, cheap, cheap. richard in new york, richard. >> caller: happy new year, booyah to you, jim. >> done your way, my friend. how can i help? >> caller: honeywell just spun off acetic. what do i do with asix? >> i think that you can hold asix but i really like honeywell. i think that i do feel badly that we are going to see mr. cody retire. but i bet you he's got a good person coming in after. and that, ladies and gentlemen, is the conclusion of the lightning round! >> announcer: the lightning round is sponsored by td ameritrade. this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that,

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whenever i come out here to san francisco, i try to put my finger on the pulse of silicon valley and few people have a better read on innovation in the tech industry than chris sacca, the venture capitalist behind lower case capital, which owns a portfolio of wireless technology startups. here's a guy who got in the ground floor of twitter, instagram, kickstarter. now, yesterday i got a chance to speak with chris sacca and get his take on what's happening in the tech world. check it out. chris, i follow you on twitter. i'm starting to think that even though you've made these multibillion dollar fortunes in lots of different situations that worked out, you seem more interested in the smaller ones that are in shark tank. >> shark tank brings me back to

what made be passionate in the first place. as the dollars got bigger, there's a lot of politics, a lot of back stabbing, blood all over the walls. that's not what got me into investing in the first place. >> the people on the show are every bit as real as travis and uber? >> there's no doubt about it. the show is very real in itself. we don't know anything about those companies when they come in. nobody tells us what to say. if you see a shark tank fight break out, that's real. what you're seeing is actual hustle. these are people who beat out tens of thousands of other -- i think last year they had 40,000 applications to be on that show, to get up there and get a few minutes in front of the panel and they got to make the most of it. >> i wanted to ask you, you're seeing this real would-be entrepreneurs or entrepreneurs looking for money. we've got this weird dichotomy in the country where we've got a billionaire running for president, okay? >> alleged billionaire. >> we'll go into that in a second. but there aren't a lot of business who are for the guy. and yet he has presented himself

as the uber businessman? >> this is what's funny and please don't donald trump's name with uber. >> you're right. that's kind of a prefix. >> as much as people talk about the country being as divided as it's ever been, what we don't talk about is that the business community has never been so yeun fined behind one candidate. you can't find anyone from silicon valley to wall street who is really willing to come out and support this guy. they are desperate for surrogates to get behind trump, and they can't find anyone who has actually had genuine success and willing to stand behind him. that's because he's all smoke and mirrors. we know he doesn't have the money he claims he has. we know the money he does have he didn't get through means he'd be proud to tell his kids and grandkids. he only gives away money he takes from other people. he preys upon the less fortunate. he's racist. he's xenophobic. he's sexist. how long is this show? >> i'm not going to represent him being the strawman arguing with, but i think it's important that you are a very successful

venture capitalist, and this is your view on him. i'm not here to say he's none of those because i can't do that. i think that your opinion matters. >> even if i came at it from the greed case, so for me as an investor, investing in a tech and consumer sectors, i really want to see stable capital markets. i want to see low interest rates. i want to see talent be able to come to this country and build their companies here. i want to see availability of capital to go ahead and buld up larger investment bases in our companies. i want an ipo market that's open. i want a limited regulatory environment. i want there to be no censorship on the internet. broadband to grow, more mobile devices available. i want stem education to go ahead and fund the next generation engineers. he won't do a single one of those things. >> well, we don't know. maybe he gets an advisor who says he should. >> well, he hires the best people, but this is usually when you start hiring those people, and i haven't seen any of them show up yet. >> fair enough. i want to talk about what you were saying, kwi is you're painting a picture of mer tock racy, and our country is really

maybe the only meritocracy left. is it still happen something are many of those forces that you just mentioned in play? >> yeah, i mean there's still a much higher hurd toll clear if you're a woman or a person of color, if you come from a poor neighborhood and you don't have access to computers or even a good grocery store right now. but we are a beacon for social and economic mobility. our chief export used to be, you know, either weapons or entertainment depending on how you looked at it. >> we were soda. we were movies. remember when they used to make fun of us? what the heck happened. >> i think the chief export is the american dream of entrepreneurship now. >> what changed, though? immigrants? >> absolutely. if you look at who founded companies around the silicon valley, if you look at who is behind what started with intel but all the way up through google, you're just saying this is the place you want to build. this is the place that parents came to create a better opportunity for their kids to get access to with a truly merit crattic system. there are some on stackles, but

in spite of all this mess, i'm an incredibly proud american. >> i think that's really important because i think that we're way too cynical, and you're not cynical. you're a tough guy, but you're not cynical. >> in our business, you have to see a path to the light at the end of the day. but what we see obstacles are as work. we got to roll up our sleeves. i do think we have a justice problem right now. i think there's been an imbalance in how people arrested, prosecuted, treated. i think video cameras are servicing that now, but that doesn't mean we should light the whole country on fire and walk away. we need to roll up our sleeves and get involved and fix that system. >> you're a big fixture in social media. i'm not sure how it fits in in the concepts of the enlightenment that you're talkital talking about. i hear people who are emotionally trapped by a stock, and then i read about you and twitter, and you've got some of those same characteristics as some of our colors. >> i got a lot of trauma, a lot of scar tissue.

it's one thing to be a stock trader, and i did that for years. >> right. >> you know, abused margin limits and found myself on the wrong end of that trade. >> i'm glad you pointed that out because that's how you learn from your mistakes. >> oh, god, yeah. millions of dollars and years of indentured servitude to learn from that mistake. but as a venture capitalist, you do need to get emotionally wedded to these companies because you are all in. there's all these cliches about it being a marriage or whatever, but it's what you talk about at the dinner table because it consumes so much of your passion. so, you know, i don't think most really good vc and early stage investors can be objective about their companies sometimes. we don't plan for the down side failure. we don't hedge when we invest in a company. we only plan for world domination. anybody who is shorting it, you know, we don't look at binary outcomes. it's just -- >> got it. >> yeah. >> now, let's think about twitter as it is versus what it could be because you talk about. >> underachiever. >> i just think if i were to be say mark benioff, i would say,

listen, i've got to figure out behavior. there are not many -- >> you know with the beard and the hair, you don't look unlike mark benioff. you could get a little more on the back. anyway -- >> i'm not as cool. why is benioff so cool? how can he be cool? >> he's got u2 playing his event down the street. >> that is one tough ticket. facebook, google, amazon, i don't want to say that's binary. they can all win, right? >> uh-huh. look, twitter would be complementary to many of those companies. there's no doubt about it. look, you know, it has a unique set of data that nobody else has in the world, and it has it faster than anybody else in the world. >> yes. >> their problem is not the input. their problem is making it useful and easy and accessible and fun for all their users. so the good stuff is in there. there's a lot of junk. >> so who buys it? which guy? >> i don't know who, but i can say why google finally has -- i think google has filtered a bit

from thinking about it as not scientific and computer science enough to, wow, that's the world's best data. if we don't have that, our search results won't be as relevant anymore. i can see facebook looking at it and saying, we've tried to copy it over and over again, but we need it defensively. sacha over at microsoft was the guy who did the first revenue deal with us at twitter. he understands it well too. so i don't know about apple's ambitions because they've never really been good at social and community. but benioff loves it. it might be too expensive for him. i don't know. >> we don't know. we actually don't. that's chris sacca, founder and chairman, lower case capital, shark tank regular, and just a fun guy to talk to. >> right on.

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at vonage.com/business this place is excitingment i'm so thrilled i am out here. tomorrow morning, some of the most disruptive names in techs. do not miss it. i like to say there's always a bull market somewhere. i promise to try and find it just for you right here on "mad money." i'm jim cramer. see you tomorrow!

lemonis: tonight, on "the profit," a chain on pet supply stores specializes in wholesome food. lisa: our biggest thing is the nutrition for the pets. lemonis: but the business is anything but healthy. giovanni: it's embarrassing. i'm right back to where we started. lemonis: the stores need an overhaul. -this how you manage inventory? -giovanni: yeah. -lisa: yeah, i mean -- -giovanni: this is our weakness. lemonis: the employees need leadership. i've never been to a meeting where there's no agenda. giovanni: i think you're being a little unfair with how this process goes. lemonis: and the owners need to lose their self-righteous attitude. as a retailer, you have an obligation to deliver the consumer the choice to make that decision on their own and not for them. giovanni: oh, my gosh, that -- i'm -- lemonis: if these owners can't take control, their dream of creating a retail empire will go to the dogs.