>> if you have a conviction in either direction, the calls or puts attract. >> looks like our time has expired. i'm melissa lee. see you back here next friday for more "options action." don't go meantime, don't go anywhere. "mad money" with jim cramer 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 educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. my wife is going to hate me next week. in fact, she'll hate me for the next three weeks because we'll be in the thick of earnings season, and the work is so overwhelming during this period that i don't feel like doing anything, including talking.

no chit chat. i stay focused. since this is when the fundamentals really come to the fore and direct the overall direction of the market like today where the dow gained 29 points. nasdaq advanced 0.02%. unfortunately it's not all earnings we've got to deal with next week. what's your game plan? let me show you mine. i've been saying that the fed is prepping us right now for a december rate hike, a big reason why this market can't get out of its own way and feels so sloppy. more on that later. now, fed vice chairman stanley fisher will speak monday, and he's been a major rate hike proponent. i bet his new speech will cause this market to get hit. he's hurt stocks virtually ever time he's opened his mouth in 2016. but fisher's words will help some stocks, notably the banks, and bank of america reports on morning. the stock has been advancing of late, was up nicely today. even though it's still dirt cheap, i have to wonder if bank of america has gotten ahead of itself thanks to the excellent earnings today from jpmorgan and

citigroup. some terrific pin action in all the banks today. if bank america gets hit, it might be the perfect way to play that rate hike that does come in december. after the close, we hear from netflix, and unlike the last few times that this company has reported, the expectations have at last been ratcheted down to where i think they can be beaten. longer term i'm a believer in netflix but i accept hiccups along the way. ibm reports too. we need to see some revenue growth there, not just earnings growth. that's what would break 9 stock out of its slump. no catalyst without bottom line increase. earlier today domino's was upgraded from sell to buy. we've been behind this stock for 140 points. when patty doyle came in as ceo. this particular analyst has been fighting the stock with a sell rating. i say ill advised. when we get results from domino's on tuesday, i think it will deliver, as it so often has. but the fact that the stock has moved up well in advance makes any concerned that might not rally too much on a good number.

and this johnny come lately analyst to the story, he could end up being disappointed. goldman sachs reports tuesday morning. it's been trading up again, part of the pin action of citigroup and jpmorgan. they did well trading. corporate finance, they did well. those are golden sweet spots. i've been saying this group and frankly the whole group are cheap. i've been too bullish in the group. i think that gold man's value is both compelling and worth waiting for when the fed finally does raise rates. you know i adore johnson & johnson, talk about it all the time. it's a conservative, well run institution. it's been a fabulous win every time you bought the stock at a discount to its all time high. i like that j and jarks is down over 8 bucks from hitsz high, especially since it's become the most consistent of the drug companies. i suggest you buy some j and j, maybe into the stanley fisher selloff. intel has been a remarkable performer of late even -- the stock has been great. the company itself is doing okay. that is in no small part because the ceo is working hard to

ensure that you get some value out of this company, and it's levered to more than just the personal computer. stock is up nearly 9% this year. i'm looking forward to it. i got my eye on a bunch of companies wednesday like abbott labs and morgan stanley before the opening. abbott's closing in on the med acquisition, and i think it's solid fiesing its position in the medical device space. i think the ceo should have a lot of good things about abbott labs. next up, morgan stanley has gone out of favor among the financials of late even though it's so well run. ceo james organigorman is doingd job. morgan stanley might be a steal here, but that's only if that other scenario plays out. after the close, we've got american express and lam research and both have become very controversial of late. one of the things i like best about citigroup's quarter today, a terrific one by the way, it

really had the stock running until late day turn, was the growth of the costco credit card franchise that it got from american express. i think it was a huge mistake for amx to let that business go away to citi, and i also believe the company needs to get with the times, start spending more money on tech, keep up with all the great payments and credit companies coming out of silicon valley. however, i don't think that's in the cards. i know it seems cheap, not. lam research was trying to merge to create a semiconductor powerhouse recently but the deal was bought by the government. what does an independent lam look like, and what will the impact be of samsung's woes on lam's book of business given that samsung is the largest buyer of semiconductor equipment? the airlines came alive this week when delta announced it would not allow a. american jumped on that news but i wonder if it will pledge not to expand its fleet too when we

hear from it on thursday. if so, that stock is going to continue to rally. i love southwest. the most consistent industrial we follow is a company we don't talk enough about which is illinois tours. they report before the open on thursday. i think it's worth buying this one if it falls before that quarter on a fish or selloff. we have reiterated several time it's so consistent. next up, my charitable trust, which you can follow along at action alerts plus.com owns a substantial position in the drugstore walgreens. oh, boy, it's been a huge disappointment lately. some of that is because it's so in limbo as it tries to buy rite aid, and it looks like the federal trade commission might block the deal. at this point my hope is actually that the company walks away and starts buying back its own stock. it is time for walgreens to fish or cut bait. steady eddie verizon also reports thursday morning and we want to hear what its plans are for yahoo! which i still think it will buy despite this e-mail security breach. and we want to know more about aol. kno nothing i've heard so far moves

the needle. in my view, verizon is an interest rate play too. i don't expect it to rally as we get closer to the fed meeting because when you raise rates, the stocks that pay good yields do go down. nevertheless, it does represent a compelling value with a safe 4.5% yield. no one ever got hurt on a verizon. after the close, we get results from two giants, microsoft and slumber jay. i expect both to give you some good news. microsoft could have some expanding margins. i want to hear fn more about the business of the cloud now that they bought linked in. i keep hearing about great things from azure. that's their cloud platform. i feel like the more we hear, the more we'll want to buy. meanwhile, slumber jay, they've been down beat about the short term price of crude. could slumber jay turn a bit more bullish? if they do, expect oil to break out. we get earnings from two companies with sagging stocks of late, mcdonald's and general

electric. we know that mcdonald's, it's kind of become a what have you done for me lately stock, and the answer is maybe not that much. that said, with a balance sheet that is beautiful and tremendous financial flexibility and 3.3% yield, i wouldn't give up on mickey d's. we own general electric for the charitable trust, and it too has turned into a very tough stock save for that 3% yield. ge has not one but two challenged businesses of late, aerospace and oil and gas. i hope the company can talk about -- i believe the latter awaits, and i wouldn't be surprised if g.e.'s forecast causes analysts to cut numbers. we like it longer term more than shorter term. finally there's honeywell. dave cote told us that 2017 is looking like a good year. i would buy honeywell if it goes down ahead of the quarter just based on what we heard last night. so the bottom line, let the wife complain. next week is heavy lifting. i got my alarm set for 3:30 a.m.

and my work cut out for me. let's go to jeremy in maryland. jeremy. >> caller: booyah, jim kramer. >> booyah. >> caller: how are you doing this friday? >> i'm doing all right. >> caller: good. i just want to say good luck this weekend. i'll be wearing my burgundy and gold. i'm not too far from fedex field. but i wanted to say good luck. >> in fairness, i want to tell you i will be at the game, but i are respect the house. i will wear a muted green shirt. i already picked it out. it's a tu lane shirt. no one will think i'm wearing eagles clothing at fedex field because i respect the house as people should when they come to the lake. i'm sorry. what's the stock? >> caller: my question is with the merger of johnson control and tieco now complete under stock symbol jci, where do you see this company and stock going? the future? >> i like this. we got to surrender the short term. the short term, it is adjusting to the idea that the federal reserve is going to raise rates. the longer term this combination is bringing up tremendous value.

ruth in washington, ruth. >> caller: hi, jim. how are you? >> i'm good, ruth. how about you? >> caller: good. i want to thank you so much for teaching and helping the small investor. i think you're just brilliant. >> wow, thank you. i wish my mom would -- >> >> caller: you're welcome. my question is about baby boomers. as i grow older, as age, they need more joint replacements. and i know that there are some strong companies like zimmer and others. >> yes. >> caller: in this group. but recently you spoke about conformis, and this company uses a customized fit device that molds to the shape of the joint, which sounds very good to me, but the stock has not done well. >> no. ruth, it's too speculative. it didn't have that great a quarter. zimmer biomed is the one we've been focused on. we understand $127 stock can go in and go out, but i do think longer term in zimmer is a safer

stock to own, and i think that's what we really should have in mind. i want to go to mark in wisconsin, please. mark. >> caller: jim, a while back a stock i owned, roserock mid-stream, ticker symbol rrms, was acquired by sem group, ticker symbol semg. i was wondering what your thoughts were on the acquisition and going forward is sem. group a buy or hold. >> i like the pipeline stocks. stays around 50, and natural gas around 3 bucks. we need more rbn, which is my go-to organization for info. talking about how we need pipeline to go to mexico. mexico is importing our natural gas. i think you're fine in that stock. let's go to joe in new jersey, joe. >> caller: how are you doing, dr. cramer? >> i am doing fine. how about you? >> caller: good. i want to first thank you for all the continued good insight and leadership you provide to the individual. >> thank you. >> caller: it's worth its weight

in gold. more importantly, i wanted to talk to you about your outlook on t rowe price equity over the next six to nine months. as you probably know, it's off a little bit from earlier in the year, but it's a good time to take a second look at it and say -- >> i think people are getting very concerned that actual stock picking funds and companies that are in the business of anything other than just pure index funds aren't doing that well. i think t. rowe is a fabulous long-term holding. i do believe that equities will one day come back into a mode where people think it's a growth business again. but right now, that stock could be only described as -- >> the house of pain. >> and i'm going to suggest that you stay away. all right. no sleep till -- well, it will be a while. we got a huge earnings week coming up, and i got the alarm set for 3:30. yeah, go ahead and tweet me. i'll be there. get ready. big week. on "mad money" tonight, it's the software that helps bring films such as captain phillips, american hustle, gravity to the big screen.

could it also help bring profits to your portfolio? i'm talking to the ceo of small cap avid technology. then it seems like no rally can get you back to even these days, doesn't it? but could the growth stocks offer a respite? not quite. i'll explain just ahead. plus the market seems to have lost its appetite for the -- but this former ceo of zoe's kitchen think there's still heat? i suggest you stick 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.

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vote yes on 64. sometimes a stock will get absolutely hammered on virtually no news whatsoever, particularly when we're talking about smaller capitalization companies. just look at avid technologies, which makes much of the hardware and software used to power the

media and entertainment industries. a number of tools are used in sports and news production, things like embedding graphics, integrating social media, and even control over the video walls like you see in the main cnbc newsroom. we're a big user of avid software at cnbc. this stock has been on a real roller coaster ride. in 2015, shares were cut nearly in half. but in 2016, things turned around, and after the company reported a very strong quarter at the beginning of august, stocks surged to $9 and change to the point where it up roughly 35% for the year. since then, though, avid stock has swooned again. it's actually given up all its gains for the year even though nothing much has changed except they realized a major contract in the third quarter. so let's take a closer look with louis hernandez jr. he's the chairman and ceo of avid technology. mr. hernandez, welcome to "mad money." good to see you, sir. have a seat. >> thanks. >> all right. we don't usually talk about real small cap stocks, but it seems like that avid is doing a lot of things right, and this is the

first time you've been on. i just want you to explain to people that we've all seen avid's work. we just didn't know it was avid. >> that's right. avid is behind some of the largest media companies and major motion films. you know, every grammy-award winning artist on the music side, sports, gaming. it's really a huge, influential plafr in over 140 countries all around the world. >> to be an avid editor or actual handheld kacamera man, wt does that take? >> it's interesting because on the creative side, how avid began with the editor, like your cameraman, who will earn an average of 44% higher than any other editor over their lifetime, so he'll be buying dinner next time. the heritage side both on the editor and the mixer is what our heritage products. the issue with these people, though, and that side of the work flow, is most of the business dynamics of the business of media have moved away from the editor and mixer and has to include the entire work flow in order to make money

in media. so what avid has had to do was build on its heritage products so that it can participate in the rest of the work flow, and that's what avid is becoming now. >> i see the company -- look, the spike in the stock in 1990 jds and another spike in 2000, but that was when it was a hardware company. i see you more software and service than ever before. >> that's right. you probably know i'm a software person. my last couple countries, starting in the street.com, i was there too. we were converting media files to the internet and other content to the internet back then with a different company. but, yeah, the issue today is everything about the media industry is changing. the digitization, the connection between your story and your consumer can now be entirely digital, and it's disrupting everything economically and the work flow and the technologies they use. so what avid is doing is finding a way to participate in the rest. these transformations are never that easy. that's why both the volatility of the stock and also our own performance as we step through this transition, as you've seen

the last couple of quarters, we really seem to be surging in a couple of key areas, namely cloud subscriptions, large enterprise wide deployments, access to the tier 3 market. these are the areas we're trying to build on. >> the company had been delisted at one point. that's now all behind you, right, the issues that were involved in that? >> that's right. shortly after i came on, you know, we went through a full assessment, created this transformation strategy that we said would be over in the second quarter of '17. of course, one of the gifts i got shortly after being there was discovering that we had a restate nine years of financials. >> it had nothing to do with you and i really wanted people to know that. >> exactly. be that as it may, what it did allow us to do is accelerate some of the investments we were making during the time period where we had to go back and restate, so about 18 months or so we got delisted. we had to get relisted. as we came back as a public company, we were kind of halfway into this major transformation. hard in a public setting for investors to follow all the moving parts. those moving parts are starting to diminish. we've said the end of this

transformation is '17, mid year. you're starting to see with every quarter, real progress. you've seen platform sales up last reported quarter 47%. you've seen four times growth on our cloud-based subscriptions, and more to come. so we're excited about the positioning. investors have been patient. and when you go through these transformations as a public company, as you know, very hard to predict any quarter to quarter. >> if i watch the rio olympics on nbc, if you just had to tell me where would i have seen avid's work? where would it be? >> i'll tell you what. i was at the olympics with dave ma za, incredible guy and team. number one, it's so inspiring. but if you're thinking about what avid does, we do everything from creating the asset, the story, editing, mixing, storing, archiving, playout, social media distribution, the whole thing. we do graphics. we do sports enhancements. he with do augmented reality, virtual reality. of the 25 broadcasters there at the ibc, everybody used avid. >> everybody? >> everybody. and the most incredible thing

from the six guys, from the cuban delegation to the largest, which was nbc, the most impressive, and i'll tell you, nbc marks the state of the industry. you see, they reduced their staff on the heritage broadcast side because they knew the ad yield revenue rates were coming down. they invested heavily on their digital side. 100 million unique viewers and all the graphics and sports enhancements really saw the xfinity subscribers go up. so nbc, i think, did exactly what the industry is trying to do. how do you make this transition economically? >> all right. well, look, you've certainly pulled it off. i want everyone to know that this is a new avid, so to speak. that's louis hernandez jr. he's the chairman and ceo of avid, technologies. small cap stock. you have to do a lot of work. stick with cramer.

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now it's both the senior growth and the junior growth stocks that are having trouble. even on a fairly positive day like today. just consider the most visible of these bleeding growth stocks. by the way, they may not be at all in sync with the longer term fortunes of the companies they purport to represent, but they've created a heaviness. why don't we start with disney which gained 19 cents today. that gain lately has been followed by a 24 cent loss. it's one step forward and then a step and a quarter back with stocks like disney these days. if you notice there aren't any real bad day in the market, disney always looks like it's on the verge of a big breakdown. the same exact pattern goes for nike, which presumably must be, i don't know, having problems with its north american business like last quarter, or starbucks, where the action makes you feel like the u.s., which was weak in the last quarter, still hasn't come back. starbucks also managed to rally a little bit today, but in

general in good sessions all these stocks seem like they're inching a little bit higher and on bad ones they erase any gains they might have had and then some. this is torture. they tantalize and then they crush. then there's stocks like acacia and twilio. the quintessential junior growth names that came public earlier this year and exploded higher when they did. both acacia, which is a does runtive tellco equipment company and twilio, both recently pre-announced much better than expected quarters. i mean dramatically better. but almost simultaneously they announced secondary offerings, and while the first was good news, much better than expect earnings, let's call them second. the second was an invitation for a short selling disaster because shorts flew in when they saw the insiders selling. acacia, the network equipment company, ended up pricing its secondary down ten bucks at the

same time as this pre-announcement last week, and the stock bounced up there a little bit intraday, looked solid, but then just fell apart. it proceeded yesterday to go all the way down to 88 bucks, still above where it was before the previous breakout quarter back in august, before it rallied back to the niengts. sure enough, today 2 lost $1.91, and it looks like it wants to roll over again. it wasn't much different for twilio. it announced a secondary offering after a huge run of much better earnings. yet it still can't get out of its own way. the shorts are having their way with twilio these days and it's fallen from 68 to 46 just a few weeks time. both these 2016 ipos now feel very much like 2014 ipos, when you had lots of sliver deals. that's what i call them. both twilio and acacia were very small ipos. they just offered a little bit of stock at the beginning, which then created a pop, and then created further buying as well as intention short selling. you had 46% of this new company twilio's float is short. 27% of acacia's. the stocks roared back and fizzled when the new supply hit

the market back in 2014. it does feel like that again. the secondaries rather than creating opportunities for short covering for the people betting against these stocks, which is what happens by the way in a healthy market, now look like opportunities for the shorts to double down on their positions, really go down there and give these stocks the business. that could mean no respite for the stock holders in two of the hottest junior growth stocks in the market, which have great businesses underneath them. so the high growth stocks and senior growth stocks are both heavy. ulta salon broke the mold yesterday with it's $27 run after that great analyst meeting. i think that one can go higher even though it gave back 3 bucks today. more important, it still isn't back to where it was before its most recent quarter, which causes the shorts to get emboldened and try to knock it down. the ground looks solid, and then, boom, there's nothing underneath. that's what's playing the sliver stocks that i just mentioned. it may be what's plaguing the senior growth stocks too. for me as a lover of growth, this is where the rubber hits the road, right here, right now. these stocks are too visible to break down without causing the entire tape to look heavy.

it's as if they have a grave responsibility to the ents tire market, and they're doing nothing but letting us down, except for an occasional day where they dazzle and tantalize, only to resume their declines a session or two later. taylor in california, taylor. >> caller: hey, uncle jim. just wanted to ask you about verizon, vz, and the merger with yahoo!. it's been taking a beating in the past three months. what do you expect? do you buy, sell? >> verizon reports next week. i expect an okay quarter. yields 4.59. let's say you buy a little bit ahead of the quarter. then you buy a little bit more. it's a great bond market equivalent, doing really well. i'm not concerned about the yahoo! deal. i think that stock may be a buy both before and after it reports. let's go to vincent in texas, vincent. >> caller: booyah from texas. i want to say thank you from our home investors. i wanted to ask you about ntnx,

a tech stock. i know it has a high amount of competitors in the market such as cisco and hewlett-packard. but it also has a good amount of revenue and gross margins increasing over time along with a recent positive cash flow. i wanted to see what your opinion. >> there was an outfit today that downgraded -- that put a sell on it. i don't really know the outfit. i did not have the ability to get the research of the outfit. i would love to get that research. i have to tell you the stock is too high. what i'm talking about lately are stocks that are too hot. need to give back a little of the gains, cool off, and then recharge. chris in illinois, chris. >> caller: booyah, jim. how are you? >> i am good. how about you? >> caller: i'm well. okay. my question is about trading around a position. you said never pay above your cost basis for something. >> yes. >> caller: i have a core portfolio holding. it doesn't look like it's going 20 go back down to my cost basis but it's taken a little bit of a pull back. i'm looking at cisco as a

specific example, but what do -- >> in get rich carefully, i talk about this notion, discipline, for action alerts plus.com, where i just say that far more times when i pay up above my basis, i end up losing. it's very rare that i ever have made money. is cisco the way to go? i think cisco is a terrific stocks, but all stocks i think in this growth cohort right now are under some pressure. maybe get a chance to buy a little bit lower. why don't you wait a little? even on a positive day like today, it was a shall it seems like none of these rallies can get you back to even. don't you feel if? there's much more "mad money" ahead. has the fast casual boom changed the restaurant as a whole? i'm sitting down with the former ceo of zoe's kitchen to see how the industry is fares, then broadband's ceo is running one of the top technology companies in the country. i'm talking about her path from war zone to the boardroom. and a thank god it's friday

edition of the lightning round. so stick with cramer.

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what are we supposed to do with the restaurant stocks now that the group is facing so much competition and they've been absolutely hammered. the entire industry has been caught in a vicious selloff, cracker barrel, red robin. it feels like nothing in the group is working unless there's a special situation like yum that's unlocking value. chipotle is still struggling to find its footing since being hit with an e. coli hit last year. how about fiesta restaurant group, frgi, parent company of taco ca ban ya, which has dropped 35% last year. how about zoe's kitchen, the mediterranean themed fast crash cal chain.

here's a fast growing former darling that's fallen out of favor pretty dramatically in the last few months. when zoe's reported a little less than two months al, the numbers came in a bit weaker than expected. maybe something else is at work here. if it can't beat the numbers, we have to ask is there something bigger going on in the restaurant space? has something changed when it comes to americans' desire to go out to dinner? let's get a read about this whole industry with john cass i muss. he's the informer ce oh of zoe's kitchen, who took his parents' single restaurant in 1995 to a regional brand. he no longer has a day to ray role in the company. mr. cassimus, welcome to "mad money." you heard the litany, and you know the business. what the heck is happening? >> i think several things. first and foremost, there's a lot of competition. there's been tremendous amounts of small fast startups, mom and pop restaurants in each market,

and i think it's grown at a pace as there aren't database there's more seats for diners, food trucks, people staying at home. i think really, honestly, household incomes have not increased in the last seven years. there's less cash available for that. and then really, honestly for me, the election, i think, is having a big impact, and i think people are really scared right now. they don't know what's going on. >> i talk about that because i get the same -- i hear that ennui, that basically the discourse is very negative and i think makes every american feel -- i'll use jimmy carter's word. there's a malaise. >> absolutely. what happens? we're going to have to find out. it will take some time. the thing that's important to me in talking about the restaurant space, the nimble brands, the brands that can adjust -- and i think fast casual is poised for that because the small number of people it takes to run a

restaurant, they can cut back when times get slow, and they can still remain some sort of profitability to weather the storm. >> how about the minimum wage for a small place? does it matter? >> i think there's always people trying to figure out how to bend those rules, not really bend the rules, but if it's a certain time limit people work and then there's indicators that kick in that cost you more money, you're simply going to work people for smaller amounts of time. >> restaurants do compete against making food at home. the supermarket, the prices have come down. that's a very unusual thing. can people actually make that pivot? people are saying, it's so much cheaper to stay at home, i'm going to go cook something than go out. >> i think those times are past. there's nobody going back. people are too busy. dual income families, soccer, baseball year-round, all those things. it's just cheaper to go to a fast casual restaurant to have dinner than it is to cook it at home. >> do too many companies get too much capital? is it possible the venture

capitalists backed a lot of chains they shouldn't have? >> everybody is not going to make it, and that's a really key point. you look at it, and who's going to make it over the next several years. the ones that have the strongest brand. listen, when people start companies today, what happened to the days when it was nothing wrong with having a quarter or two of bad results because you're building a big brand. you're building something, ch k chick-fil-a. he had a thing behind the coach that says there's no obstacle too high if you climb with care and confidence. he looked at me and said, don't grow too fast. so people are being knocked for not going fast enough. >> i look at shake shack, and i know wall street is constantly wants them to put up more stores than maybe they should be able to. >> that's a whole nother loaded gun there because they're in a segment of the fast casual restaurant space that is so -- there's so many competitors, even from down to qsr and all the way through. it's very difficult to compete.

>> in the time left, what would an investor at home -- should they stick with the concept they like a zoe's because it's mediterranean casual. should they stick with it through thick and thin or is that too dicey to do anymore. >> there's no question. if you're going to be invested in food and a small cap stock, there's no question in my mind, zoe's kitchen is the only one to be invested in. strong loyalty. great real estate. their locations are less susceptible to economic downturns than others. the brand has a cult following, and their runway for growth is unlimited. >> there are not that many that are like that. obviously you're familiar with -- >> i think that zoe's kitchen, that brand is a first mover like chipotle was and like panera bread was in each of their segments of the fast casual. zoe's has done that with mediterranean, fresh homemade food. chipotle went public at 300. zoe's went public at 100. >> there's room? >> there's room. >> fair enough.

i think that's a great analysis. this group has really been tough, though. that's john cass i muss, former ceo of zoe's kitchen. "mad money" is back after the break. ♪ today, we're seeing new technologies make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way clinical research sites collaborate with pharmaceutical companies, and enhancing patient engagement with innovative platforms and solutions.

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>> it is time! it's time for the lightning round! that's where i take your calls rapid fire. you tell me the stock. i tell you to buy, buy, buy or sell, sell, sell. we'll play this 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 madeline in florida, madeline. >> caller: hey, jimmy. it's madeline. >> hey, maddy, what's up? >> caller: thanks for the scolding this week about not turning trades into investments. i really needed to hear that. >> i don't know. someone at the supermarket said i was dead wrong on that but i think he was joking. what's up? >> caller: also, i like the funny stories you tell about mrs. cramer. keep them coming. >> she's a riot. >> caller: anyway, i bought ori a few months ago, and it's not doing anything. i'm kind of getting tired of looking at it. what do you think? >> yeah. no, that's a stay the course insurance company. it's an old good company. travelers reported this week.

i like the dividend. i think you're fine. thank you for the kind comments. thank you. let's go to teresa in florida, please. teresa. >> caller: jim, thank you for all of you do for all of us. >> thank you, teresa. >> caller: i'm curious about kweft diagnostics. >> this stock got hit when they're nose started to roar, and i think it's got up too much. at this level, don't buy. marvin in new york. marvin. >> caller: booyah. my stock is stm. >> it's one of those stocks a lot of people think is going to get a takeover bid. it still remains inexpensive. i still like the semiconductor. watch this nvidia coming down. that could be an opportunity. let's go to james in new york. james. >> caller: hey, jim. how are you doing? i wanted to ask you about pbf energy. >> refining, i'm not there. i prefer to have -- let he just say i like a yield.

maybe buy a basket. let's go to vj in illinois. vj. >> caller: big booyah, jim. >> booyah back. >> caller: jim, thank you for all your sincere efforts to help people to make some money and educate them. i wish you and your family good health and happiness always. >> wow, thank you. vijay, same to you. thank you so much. thank you. >> caller: i'm a long term investor, and what is your take on summer. >> i'm glad you used the word long term because short term i think it's a little shaky here. but longer term i really like. any company that gives you a health care solution that brings down the cost of health care, that's a positive story. bernie sanders, little tweet tonight. let's go to mar va in georgia. >> caller: hello, there. >> hi, marv. >> caller: all right. the plate depth, is that buy, hold or sell? >> no. as a matter of fact, we've been talking about -- you know, the

research guy who helped me immensely in putting together the research for the show, and we all think that one is way too dangerous. i'm taking another one. let's go all the way to arizona to -- by the way, the cardinals, i got two cardinals playing in the fantasy league. i forget who they play. let's go to ej in arizona, ej. >> caller: hey, jim. how you doing? >> jets good. what's up? >> very good, man. i was looking to pick your brain on this tech stock that's been pretty hot these past couple months. they just landed a second china deal today and i was wondering what you thought of that and if you think it would be as impactful as their first one. >> which is the one? >> caller: the stock is amd. >> oh, advanced market. they report next week. they did a big refinancing, which i was in favor of. that caused a lot of people to think it's not going to get taken over. i don't remember stocks on a takeover basis, i think amd is

coming back. maybe buy some before and after. and that, ladies and gentlemen, is the conclusion of the lightning round! innocen >> announcer: the lightning round is sponsored by td ameritrade. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade.

last week when i was in san francisco for salesforce.com annual dream force conference, kind of like a commune for all things social, mobile, cloud, internet of things and artificial intelligence, i got

to meet with a host of privately held companies that are revolutionizing their respective fields, like broadband tv, operates a number of youtube networks. company helps video creators connect with their audience while helping advertisers get the most out of their online media presence. their gigantic multiplatform network has 79,000 partners and gets a total of more than 18 billion, with a b, paid views per month. in a rapidly shifting media environment which online video has changed all the rules of the game, this is a company that understands how to grab eyeballs. i got to speak with shahrzad rafati. she's the visionary founder and ceo of broadband tv last week. i want you to take a look. shahrzad, you got probably the most exciting background of anyone we spoke to this week. i just want to give you the floor. tell me about your background because i have to admit i love this story. >> thanks so much. it's great to be here. i'm a computer scientist at heart, and i started my company,

broadband tv right out of school, and it really came down to my passion in life. you know, one of the key drivers in my life is, you know, creating jobs on a global basis. when you're looking at every second online, by 2019, there will be more than 1 million minutes of dip loid across all the ip networks. that means that an average user is going to spend 5 million years watching just content that -- video content that gets deployed every month. i think the amount of content being distributed across ip networks is growing massively, and this is not just being deployed by large traditional media companies, but it's also being created by this next generation of content creators. so really my passion in life is to be able to help these new generation of content creators, empower them with right solutions, tools, technologies to be able to succeed, which is like really helping empower entrepreneurs. >> but i also have to tell you that you're humble, and i know

you want to get your message across. but i'm demanding that you tell me about your family background because when i first met you, i was in awe. i'm still in awe, but i'm in awe of that part of your personal history. >> i think my personal history, i grew up in iran. you didn't have access to really it was three tv channels, and because of that, when i -- as i was growing up, i really wanted to make sure that i played a part in democratizing video content and really empowering storytelling. we live in a day and age where individuals can actually directly impact, you know, an audience, leveraging platforms like youtube, facebook, snapchat. i think, again, leveraging technology, because of the fact that content consumption is unlimited, you're going to be able to actually do that and solve major problems upscale. >> people may not know you are probably the fastest growing on video and on youtube, but it's different properties that you own. just go through the properties because people probably watched them and didn't flknow it was y.

>> we're the third largest video property in the world after google and facebook, which means one out of every three people that are across google sites are consuming our content. when you're looking at our growth rate, h 1 over h 1, we had a 289% growth in views only. obviously we are private, so we can't disclose our revenue numbers, but similar trends. this has come across all the verticals that we operate. so we are number one worldwide in unique views, and also watch time across our peer group in multiplatform networks, which means we're the largest distributor of short form content. but that is also because of the fact that we actually have gone very deep in terms of the verticals that we operate. and this ranges from entertainment to gaming to music, journalism, and recently we formed a partnership with the nba in launching -- >> i didn't know you were a basketball fan when i first met you. >> oh, absolutely. >> one of the things that we've been exploring out here is

artificial intelligence, machine learning. even if the time since i've known you, this has now been something that's very important for your networks. >> it is, absolutely. i think, you know, again it's one of my passions to be able to leverage technology to solve problems at scale and, you know, whether if it's leveraging artificial intelligence or other solutions, obviously as a computer scientist, a.i. is a great passion of mine, and this goes from deep learning, which means leveraging deep learning to address big problems in data analyt analytics. extracting complex patterns across large libraries of content that are unlabeled, uncategoried, to semantic indexing, to data tagging. and really this allows -- i mean for broadband tv, we have the second largest database of video, and this has allowed us to better understand those patterns across our network and be able to better optimize our content, and also help increase the quality of the content. and i think the other thing that

is also interesting in a.i., and i think we spoke about this, i think last time we met is around emotional intelligence. >> right. >> and emotional understanding. and this is very interesting in a sense that i think as a frontier of ai. in order to be able to actually leverage ai, to understand human emotion, because when you're looking at cameras and the level of sophistication in cameras, or when you look at face and voice recognition, the technology has advanced so much to a point that we can actually really detect human emotion and the state of the emotion. and i think there is a massive, i think, area of opportunity in terms of us solving depression with medical diagnosis or even education. >> that's shahrzad rafati, and she's the founder and ceo of something that if you don't know about, you are missing one of

the fastest growing companies on earth, but it is broadband tv. ♪

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you know, my buddy scott wapener, his halftime report, it's actually going to hit the five-year mark next week. congratulations. listen to this list of names that are stopping by to pay homage to this incredible achievement. we got next level hitters. david tepper, karl icahn, jeffrey gundlach, mark lazry, nelson pelts, the man who has been an activist, jim chain oes, a short teller has got some terrific ideas, interviewed him at delivering alpha. and a lot more. it all starts monday on halftime at noon eastern. this market is sloppy. i think this market should sell off a little more before you get aggressive. i like to say there's always i promise to try and find it just for you right here on "mad money." i'm jim cramer, and i will see you monday.

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