strategies you can avoid, disney in november 96 if you already own the stock. >> dan nathan. >> do it with a defined risk. i like the november call. >> looks like our time has expired. i'm melissa lee. thank you for watching. we'll see you next friday for more options action. "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. 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. you want cross currents? you want people making instant decisions about everything from e-mails to earnings? then you loved today's session where investors shifted hundreds

of billions of dollars from health care stocks to techs and industrials and then bolted from the market altogether when news came out that the fbi is probing some newly found hillary clinton e-mails. then after further review, the money flowed right back, but only dau closing down just eight points. nasdaq dipping 0.50%. what the heck is going on here? i don't know what will happen with fbi director james comey's reviewing of new e-mails related to hillary clinton's personal server. but i do know this. i do know that this market seems to want some certainty or it wouldn't have plunged so hard midday when the news came out. beyond that i'm leaving the politics to the pundits. here's what i do know. the overall performance of the average today obscured one of the most vicious rotations i have ever seen in my career. health care stocks, which had been under pressure throughout the campaign season bled from the eyeballs today thanks to a couple of monster shortfalls in the health care cost containment.

these declines were so pronounced that we ripped up the show plan tonight and are going to spend a whole segment on what the heck happened today to cause it to burst. suffice it to say that next week's game plan has to address these issues head on because so many companies that report next week are caught in the rotational madness that tore the health care stocks asunder this afternoon. we won't have to wait long to see if there's a second day of selling in the drug distribution stocks since cardinal health reports monday morning. today cardinal fell almost 10% when mckesson acknowledged there's a price war going on in its corner of the health care industry. when cardinal speaks, they're going to have to address it head-on. the health care scourge, which started with compression in both branded and generic pharma during the primary season finally hit the medical device segment this week when a couple of device makers reported

disappointing numbers. it spilled over into zimmer biomet which also reports monday morning. if the whole group weren't in the dog house -- it may not matter. with money coming out of the health care sector like a fire hose. we also want to get some clarity monday about what general electric doing. what is it doing with the oil service company baker hughes? what are these talks about? we heard everything from maybe they're buying baker hughes to spinning out their oil and gas business to baker hughes. the limbo is too much for me. while my charitable trust does own ge, if it gives away its oil and gas business at the bottom, i believe that would be a colossal mistake that might make the stock no longer worth owning. we got reports today from exxon mobil and chevron and the market applauded chevron's growth while it went thumbs down on exxon's entrenchment. next two we get more results from oil companies. this group's all over the map.

oil fell more than a buck today because apparently both iran and iraq don't want to play ball with the output freeze. if it keeps sliding 234ing next think we need to take advantage. you might want to consider the stock of pioneer natural resources which reports tuesday after the close. pioneer has been the aggressive buyer of undervalued american oil properties during the downturn. it's got the best growth prospects of all the independents because it's taken so much action. the biotech stocks have been so much pressure of late and the selling continued today with the crushing of the stock of amgen. it fell 15 points on drug pricing pressure mentioned on its earnings call. i can only wonder what gidial, which -- gilead will have to say when it reports on tuesday afternoon. wednesday, we will get more health care madness when we hear from amerisource bergen, which along with cardinal and mckesson has been hammered by the

knock-down drag out price war for the generic business of america's pharmacies which i said we're going to talk about later. this is the culprit that started the price war. by this point maybe we'll have a full understanding of the issue. if it can bounce, maybe these starts can start putting in the process of a bottom. otherwise wait until after the election to do any buying. these stocks don't seem very safe to me even after this decline. now, it has been a rough ride for clorox shareholders lately. this stock peeked at $140 right at the time of the big instant rate. i think the stock's getting mighty interesting here. i like that probiotics line that they have. but the prospect of a rate hike in december still looms and we can't be sure the fundamentals will trump the fact this is indeed still considered by many to be a bond market alternative or equivalent stock. you know investors are still buzzing about that at&t decision to buy time warner for $85 billion, right? what exactly are they getting? why don't we listen to the conference when time warner reports wednesday. maybe we can find out. i can't wait.

jeff bewkes, a great american. after the close we hear from facebook, fb. this company has a history of putting up amazing numbers but you know when the stock is run up going into the quarter, historically it's almost always paid to wait until after facebook reports to buy it. so that's my suggest to you. the charitable trust has a big position. just as facebook has been red hot, the stock of whole foods has been ice cold. there are so many buyers waiting on the sidelines for the ship to right itself, given how much people like to shop there, you might be tempted to buy it before the company reports. i think that's been a mistake, and i'm taking a guilty until proven innocent approach to whole foods, recommending you want to hear of a turn. don't guess ahead but actually hear about it. believe me, you'll get a chance to buy it. after the closing we're going to hear from two companies, starbucks and skyworks

exclusions. my charitable trust has been pieing starbucks for the long term, people. even as we expected they might have strong numbers, their overseas numbers have been quite strong and i think china is on fire. you might want to see what starbucks have to say. we just heard from skyworks on this show, and it had a lot of good things to say about all the devices its products go into. but when stie corks talks on his earnings call, all investors want to hear about is what one of their largest clients, apple, might be up too. apple doesn't let any of its suppliers talk about its business. that's the rule. however, apple is such a huge part of a company's revenue stream, it's hard for them to hide the orders or lack thereof. we know apple stock has been -- we know what's gone on. a 24-point run from its bottom five months ago although it's given back some of its gains. some naysayers think the best is behind them. do i really have to go into it? it's friday. skyworks talks about a surge of orders, then it might be game on

for the next leg of the apple rally. final on friday we get the last non-farm payroll report before the election. if it's strong, i think we should be bracing ourselves for a december rate hike. that's what a lot of the pressure has been about. i wish we'd just get it over with already frankly, but all in due time. so here's the bottom line. the parade of earnings continues unabated next week, but it's book ended by washington's politics and e-mail investigations and a labor department payroll number. so we can't just focus on the quarterly reports without thinking about the broader prism that keeps stocks in check or check mate depending on how you look at it. dave in california, dave. >> caller: hey, jim. thanks for taking my call. >> quite welcome. >> caller: jim, i was reviewing one of my larger holdings, nova gold, and i noticed in addition to being partnered with barrett gold, nova gold is also partnered with a company i've never looked at. it's tech resources limited.

jim, is tck worth a better look? >> i did a lot of work on tck as part of delivering alpha. here's my problem with tech resources. it is up 445%. you say, hey, when it was up 300 percent you should have been recommending it. i did take a hard look at it but this is a momentum play. momentum players, if you want to play the stock with the most momentum, it is indeed tech resources. alex in new york, alex. >> caller: booyah from new york city, jim. thank you so much for having me on the show. >> of course. of course. good to have you. >> caller: i'm calling in about public storage, psa. jim, i thought this stock could do no wrong. they're line from '09 to 2015 looks like it was drawn from a ruler and they held pretty well in 2016 when the rest of the market was reeling. now they're in a free fall the likes they haven't seen since '07 and '08 and we all know what was going on then. my question to you is do you think this sudden drop in public storage is a sign of something bigger? >> no. >> no, it is a sign strictly of

the fact that the fed is going to tighten in december. that's what people think and they want to get out of the stock that yields about 3.8% because they feel like it's going to go longer. they're selling ahead of the rate hike. they'll probably go right back in even if we don't get one. tim in arkansas, tim. >> caller: big tgif booyahs, jim. >> indeed. big weekend. bingeing on strike back this weekend. what's happening? >> caller: new avid follower of "mad money." i've got a new self-directed ira so i'm in this for the long term. i bought deo in mid-september when they had positive comments. they have great products, johnny walker blue by the way. good dividends. good merger candidate. there have been other m&a in this sector. pound is still week, but the stock's down 5%. >> that's okay. look, i'm friendly with that whole johnny walker family. really stand-up guys. i do believe that deo comes down a little bit because people are selling those kinds of stocks. i think deo is a buy, and if it

gets to par, which is authentic wall street gibberish for 100, pull the trigger. all right. keep your head on a swivel next week. there's plenty of earnings on the calendar but plenty more out of washington to keep us worries. on "mad money" tonight, shares of mccassen corp. went sliding today. i'm focusing on the fallout. then ding dong, avon is calling. as the stock went down, is it worth answering the door, or should you pretend you're not home? the next big thing when it comes to data. i'm talking to a private player on how it's keeping all of your information secure. so 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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what the heck just happened to the drug wholesalers? suddenly a group of stock that were widely viewed as low risk getting put through the meat grinder. with mckesson down 22% in the wake of a truly hideous quarter, which then dragged down the two main competitors, sending amerisource bergen tumbling 13% and crushing cardinal health at 9.76%. what's going on here? first of all, mckesson just reported a huge top and bottom line miss this morning, and then cut its full-year earnings guidance by 8%. but as bad as those numbers were, it was the commentary on the conference call that really terrified investors. you see these drug wholesalers all act as middlemen between the pharmaceutical companies that make drugs and the hospitals that buy them. for years the drug wholesaling business has been a benign ollie goply. together, mckesson, cardinal and amerisource control about 90% of

the market and for ages they all did well because they didn't really try to compete against each other. at least too hard. but now all of that seems to be changing. why? okay. before we go into the details of mckesson's quarter, you need to understand this whole industry seems to be under attack from within. for example, amerisource bergen recently spoke at a morgan stanley conference and said they're tired of losing market share and plan to take it back by competing aggressively on price. once that kind of competition starts, everyone else needs to keep up, and price wars of course are an ath ma. two main earning streaks. that's not what's understand fire today although it hasn't been as strong as it used to be, in part because political pressure has been keeping drug companies from ramping up prices. there's a second stream, the independent drugstores paying them to get breaks on generic drugs. it's the second streak that now seems to be in jeopardy.

allow me to explain. these companies typically work on three-year contracts. when a deal is up -- these contracts apparently have an out, a drugstore chain can switch to another pharmacy benefit manager if if is offered a big enough discount from the current contract's price. apparently amerisource, which reports wednesday, is offering just those kinds of discounts. that's right. amerisource bergen has set off a real rootin' tootin' price war, one that no one expected because after all, this industry has been a benign ol goply for a decade and a half. mckesson made it very clear that this is the problem on their conference call. the ceo said, and i quote, i can tell you that mckesson doesn't believe you can build sustainable relationships with customers or value for shareholders with a price oriented approach, and i know at least one company in our sector has been pretty public about

growing revenues above market and about regaining market share, particularly in the independent space, end quote. in other words, they think price cutting is a real bad idea, but one company, amerisource, has gotten pretty aggressive about it. now, mckesson, as i said, the stock lost 22% of its value today. worst decline in 17 years. it might not be done going down. how is that possible? how bad could it get? in the past when price wars have broken out, the stocks of these companies have been eviscerated. it doesn't happen all overnight. i know down 22% seems like an evisceration, but there could be more ahead. now the investors who own these are freaking out because who knows where the price war ends? here? lower? does mckesson try to win those pharmacies back with even bigger concessions? we don't know the answer. of course on their conference call, mckesson said they don't expect aggressive price cutting on their part to continue. but if their competitors keep

cutting prices, i don't see how mckesson will have much choice even as it wants to hold the line. the decline today is screaming they can't, which is why i can't pound the table on this discount and say this is where you should start buying much there's some other wrinkles. for example, walgreens own 23.9% stake in amerisource bergen. walgreens stock was down today. should it be? maybe the numbers are too high, but they really aren't a loser in this. we told action alerts subscribers, it doesn't hurt them. really, you know what? you could argue that the pharmacies could be helped by this. they're likely to get lower prices. what else? mckesson does have other businesses that are worth a lot. they've got overseas pbms. they are unaffected by the price wars and are valuable entities overseas. remember, i said there are two revenue streams. branded drug makers pay companies like mckesson to sell their products and pharmacies pay them to get better prices on generics. it's only the second stream that's really threatened here.

the branded pharmaceuticals, not doing so hot, but most drug makers are worried about raising prices at the moment given the political climate. it's the generic side that's in trouble. now, of course we are indeed in an election year. like i just mentioned, a lot of drug companies are under pressure to keep their prices down. but that has nothing to do with the blowup today at mckesson. this is about what happens when an ol goply goes from benign to vicious. if the wholesalers are getting into a price war, all i can say is wow. it may not end here. so the numbers, as you can tell from the research today might have come down even bigger than today, and that's amazing. by the way, they've already come down about a half billion dollars for mckesson alone. your stock doesn't lose almost a quarter of its value for a garden variety of shortfall. but it's not just a price war. many pharmacies are starting to deal directly with the drug manufacturers. they're cutting out the middleman like mckesson. they're not much that be done about that. here's the bottom line. for a long time the drug distributors had a nice

equilibrium going, a three way competition where no one tried to compete too hard and everyone benefited. but now the supply of branded drugs going generic shrunk, and the wholesalers have started to compete on price, creating a vicious price war. in that kind of situation, everyone gets hurt, and there's no telling when the pain ends. based on what we heard from mckesson today, i think this could be a very tough situation, which is why you should continue to steer clear of the group and maybe even health care altogether. at least until after election day. there's much more "mad money" ahead. avon has been in business for more than 125 years. but history hasn't done much of the stock. could it paint a pretty picture for your portfolio? >> then nutanix more than doubled in price but the stock has been stumbling since. i've got the ceo of private player sim administrativity, and i'm nominating a ceo for sainthood. i'll tell you who just ahead. stick with cramer.

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it's time to talk about the incredible rebound in avon products. the big direct seller of cosmetics and fashion products. here's a company that spent years locked in a hideous downward spiral. avon stock topped out at around 24 bucks in 2013, then plunged all the way down to below $2.50 roughly a year ago because they just couldn't get their act together. yep, just 12 shorts month ago this company had been written off and left for dead. since then, though, avon's made a remarkable comeback with its stock rallying 165% in that period of time and it's not being talked about enough. at a certain point we have to wonder what's driving this move. is it sustainable? after years of being written off

and left for dead, avon seems to be actually turning itself around, which is why i want to figure out if it's become investable. maybe there's a lot more ahead. let's take a step back and understand what avon actually does. this company is the second largest player in the $132 billion direct sales space. this is a huge global market as direct sellers, sometimes called multilevel marketing companies recruit salespeople who then sell products at your door or in your living room. avon has about 7% of the total direct sales market with the company getting roughly three quarters of its sales from beauty supplies and the other from apparel and home related products. now, until a year ago, avon was a total dog. it's easy to understand why. their business was in stark secular decline, particularly in north america and to a lesser extent asia. falling sales coupled with bad management also led to serious downward pressure on the company's gross margins, which in turn crushed the earnings.

when you crush the earnings per share, you crush the stock too. a little over a year ago a lot of people were actually worried about the company's long term viability. that is how bad this story had become. but after tumbling last november, avon stock has made a remarkable reversal and been working its way higher ever since. what happened? let's go back a little. sherry mccoy came over from j and j and took over as the new ceo back in 2012. at the time the company had been run into the ground by her predecessor and for the first three and a half years of her tenure, the stock did get obliterated. i think she was dealt a bad hand. but mccoy took a long look at what had to be done, recognized it couldn't happen overnight and set in motion a plan to separate the ailing north american business from the rest of the company. she deserves credit for what's occurred here. the rebound in avon really got rolling in december of last year when mccoy announced a major partnership with ser ber us, the huge private equity firm in a deal that was finalized this past march.

there were two prongs to this transaction. a little complicated but first ser ber us bought 80.1% of avon's north american business for $170 million and took that part of the company private. second, they bought a 16.6% stake in the rest of avon, the part that was actually quite profitable for $435 million. basically by getting involved with ser ber us, old avon was able to break itself up, selling most of its troubled north american business and getting a lot of cash to build out its more solid business in the rest of the world. the struggling north american vision suddenly became privately held and it can focus on turning itself around instead of meeting the short term expectations of public investors. more important, the remainder of avon became free to focus on improving itself and taking share in the high growth international markets that were much more attractive than north america. consider it the global direct selling market is expected to expand by about a 5.1% annual growth rate, but north america

is only going to be growing around 2%. better to be overseas. with the troubled north american business taken off the table and the remainder of avon given a big cash infusion, you can see why this partnership was a real turning point for avon's stock. suddenly the company had a future. it had a plan and a means to execute on that plan and it didn't need to worry about its worst geography anymore. this deal gave ceo mccoy exactly what she needed to mastermind a real and lasting turnaround. so sure enough, avon kicked off 2016 with a big analyst day where management outlined its plan. they pointed out opportunities for cost savings worth $350 million a year and said they were targeting mid single digit organic growth long term. that's high. then they brought in some guys from ser ber us who made the case that avon stock was significantly undervalued versus its peers. it's not surprising that avon's first couple of quarters of this year, they were let's say nothing to write home about, at least not in terms of headline sales and earnings numbers although the analysts pointed

out that the cost saves initiatives seemed to be on track. but it was in early august when avon reported its second quarter results that the turn here became really obvious. the company posted a five cent earnings beat off a two sent basis, higher than expected sales. also took some major steps to clean up its balance sheet in order to help pay down $650 million in debt that would have come due. avon saw positive growth in nine of its top ten markets. which gave the company its fastest revenue gains in more than a year, including a 7% point acceleration in latin america. i still couldn't believe that. it finally seems to be finding its footing down there. the stock jumped that same day, and since then it's been on fire. people are jumping on the bandwagon because this story has improved so dramatically. want to get a good read on wall street's new attitude toward avon? consider this recent piece from

citigroup where they said the stock had gone to investable. citi pointed out many of the things i just mentioned, the financing that's helped avon allay the worries about potential bankruptcy, the investment by ser ber us, the sale of a loser north american business, the improvement in numbers during the first half, and the fact that the u.s. dollar may have peaked. something that's important for a company that gets the vast bulk of its sales overseas. the bulls at citi think the stocks could be headed to 8 bucks. where do i come down? i have no doubt that avon has begun to turn around really in a serious way. i think sherry mccoy is doing a remarkable job as she promised when she came on the show and the stock has given us a 150% gain since then. how about that? she came here, told a great story. if you bought it when you listened to her, you made a ton of money. but that said, there is still a monster amount of room for improvement here.

management seems on the right track, which means the numbers could go a lot higher. i think the turnaround is big. i think it's real. i think the ser ber us partnership is the turning point and everything is paying off. but all that said -- and this is a big but -- avon reports again next thursday, and the earnings season has been brutal to the stocks of companies that have run up dramatically going into the quarters. so if the quarter fails to totally impress, i wouldn't be surprised if the stock pulls back. that's when you pull the trigger, not beforehand. after the quarter. here's the bottom line. i believe in the turnaround at avon products under the leadership of the incredible sherry mccoy but the stock has run so much i think you need to be careful. i recommend putting it on a small position maybe before the company reports but really waiting until after the quarter to buy it because lately i got to tell you, they've been pounding even the good ones. douglas in california, douglas. >> caller: thanks for taking my call. i'm calling about one of your faves, iff.

they report in about ten days. how would you play it? >> okay. we're not playing for quarters because we play for quarters that's a bit of a sucker's game. what we do, we say that iff, if you want to buy some before, maybe you do. then buy some after. but you're in it for the long term because iff has built a tremendous amount of value long term. that's the only way to look at that company and that stock. i like it. kelly in texas, kelly. >> caller: hey, jim. thanks for taking my call. >> quite welcome. >> caller: i'm on way fair and with the large pull back in the last month, do you think it's time to double down? >> no, no. the furniture business has turned tough and this company is in the crosshairs of a lot of shorts. look, i like money. i like money to be made. these guys aren't doing it. i say stay away. all right. the turnaround in avon, it's real. will you so is its recent rally. they report next week. much more "mad money" ahead.

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on "mad money" we're always looking for the next big theme. sometimes we need to go off the tape, check in with privately held companies, ones you can't buy shares in that are developing game changing technologies. take simplivity. this is a company that sells what's known as hyperconverged infrastructure. basically they package up the components of servers, networkinetwor networking equipment, and storage into a single system that runs more cheaply and takes up a lot less room. this is a growing business that cou . earlier this week i got a chance to check in with doron kempel. he's the ceo of simplivity. take a look.

>> doran, i'm going to give you the hardest job everment you're going to explain to our viewers what hyperconverged infrastructure is and where simplivity fits into the food chain. >> lots of long words. let's start by reminding everyone what an iphone does. and i'm not promoting iphone. but if you think about the iphone here on the left, it displaces pretty much a lot of gear, equipment products that we loved for many years. cameras, laptops, radios, et cetera. >> right. >> so if you think about that, this is consumer electronics. similarly when you look at the world of i.t. infrastructure, information technology infrastructure, the largest companies in the world run their data centers on gears such as that. >> a data room or like whole buildings that have these -- all these different machines? >> exactly. depending on the size of the corporation -- and at&t is very much in the news these days -- they have large, i would call it, buildings.

>> okay. >> filled with this gear. >> which costs money to have big buildings for all the gear and the software and the installation. >> exactly. if you think about the stack of equipment here, the world consumes about $110 billion of this gear every year. >> okay. >> so that's a lot of -- >> as well as generating a huge amount of heat which people care now about sustainability. >> heat, power, labor, services, and so forth. now, similar to the concept of a smartphone, sim -- simplivity tried to do is develop a unique technology that displaces all the gear we see here on the left with a single atomic i.t. building block, basically a server. that's hyperconverge. there are different vendors and they different along two dimensions. one dimension in the number of these products they displace. some will display two or three. some will displace all. >> don't i want something tois displace all?

>> absolutely. >> that's why i want simplivity? >> exactly. >> why wouldn't i want nutanix? >> nutanix is a great company. >> you're not flagging them? >> absolutely not. we have great respect. we're happy for their successful ipo, which has basically separated hyperconvergence from the legacy stack. >> legacy stack might be emc, near where you are, or -- >> so let's look at it from the top down. at the top of the stack, you have servers. servers could be cisco, h.p., dell, inknow vo and many others. then you have the world of data or storage. this is a complicated world. if you look where my finger is right here, this is basically a storage switch. from it all the way down you have different products that have to do with data management, data mobility. this is a very complicated world. what simplivity does uniquely, having invested more than any other company, including nutanix, in developing core technology, is basically

displace the whole stack. so that's one dimension of differentiation. the other dimension is very important is how far up market can you deliver these products? do you offer them in very small companies, or can you deliver them to the largest of the companies in the world? >> all right. well, let me just stop you for a second. i look at this, and i say to myself, why is anyone using that when they could use this in the sense that why would anyone use anything other than an iphone or similar to it as opposed to having all these different products? is it legacy? are there i.t. people that don't believe you can do it? >> evolution. it takes time. the concept of early adopters. >> show me some more, then. >> so in order for the world to start moving from left to right, what we need are reference customers. plus this all sounds unbelievable. >> yeah, it does. >> well, let me show you one of the 50 largest companies in the world, and this is one of six data centers that they had before simplivity. >> 34 racks, okay.

>> this is one of their data centers on the west coast. i visited them on july 12th. >> obviously confidential. >> can't share their name but they're one of the 50 largest companies in the world. this is one of their six data centers. now, what we see here are racks, basically refrigerator-size racks of gear. this is storage. they have servers, switches, et cetera. there are 34 racks of gear. this is their legacy environment. having partnered with simplivity. all of this just in one data center is displaced by the gear on the left. so from 34 racks on the left, we go to just three racks on the right. it's an 11 to one conversion. of what? of gear that you don't purchase. it unifies instead of having ten different products in 34 racks. you now have one type of product. you can manage from one screen globally. think about all the space. think about all the power. according to them, they're reducing the total cost of ownership by $100 billion -- excuse me. i'm ahead of myself.

$100 million over five years. but what does that mean? if you're a ceo and you look at this particular picture, it tells you this is yesterday's world, and this is the iphone. >> so just solve this for me. on 10/24 of this year, simplivity shed staff. same day forbes says you are really the second place rival but growing much faster and doing much better. can they both be the same stories? >> absolutely. >> why is that? >> just like the patriots or the denver broncos, they win a championship, they still need to retool and prepare for the next season. basically at the end of the day when the company grows as fast as we've grown, basically twice year-over-year, you need to make adjustments and need to do that in a program attic matter. you need to shift people within the company and sometimes you need to add new staff. >> the growth is still accelerating. everything is going on the right path. i got to tell you this is pretty telling stuff. i'm going to be watching your company for a long time.

that's doron kempel. he's the chairman and ceo of simplivity. understand it is a private company. it does compete against one that we talked about positive just last week, nutanix. "mad money" is back after the break. ♪ okay, so you launched your bank's app. now what? how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital, be untraditional, and reimagine what the bank of the future can be. our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. we're creating new platforms across channels so customers can effortlessly invest,

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>> it is time! it is 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 tom in new york, tom. >> caller: booyah, jim. you made my day. i'm looking at smith & wesson. >> i think that represents great value. i would be a buyer of that company right here. let's go to dave in pennsylvania, dave. >> caller: hey, jim. my stock is ex. >> i happened to be listening to the chairman of cnbc. interviewed steve schwartzman last night, and i feel pretty good about the prospects of the company. let's go to mark in where my

daughter lives, oregon. mark. >> caller: hello, mr. cramer and a good day to you. >> i love oregon. what's going on? >> caller: hey, it's a nice, sunny, warm day out here today. >> good. my daughter lives in the high desert. it's always warm there. what's going on? >> caller: i wanted to know what you thought aboutonic ca therapeutics. >> i like that company. i know it's a little speculative. it's a good company. the stock's down on its luck right now, but it's okay. let's go to luke in pennsylvania. luke. >> caller: booyah, cramer. i had a question about nat, nordic american tankers many they announced they're going to add additional tankers to their fleet. >> no. i don't want to touch it. let's go to lois in missouri, lois. >> caller: hi, jim. hi. hey, jim, i'm calling about boston scientific. it seems like even with the good news that came out that it's kind of really acting very weird. i'm not sure what i should be doing. >> lois, i want to twist that

whole logic. that's the only stock that's still up. i'd pull the trigger. sha dee in new jersey, sha dee. >> caller: hi, jim. my stock for today is juniper. >> pre-announced better than expected numbers. if that stock comes in, bingo. how about madeline in florida, madeline. >> caller: hey, jimmy. i called in a couple hours ago about corbus pharmaceutical but i ended up selling everything. >> really? that was it? it's very speculative stock. we talked to them the other day. i have to tell you the street.com has got some coverage of it so you have to be a little skeptical. let's go to harvey in oregon. another oregon, wow. harvey. >> caller: yes. very beautiful, sunny in oregon. i've been an investor, not a trader in d bolt fee bold for y. what's going on when the reduction in the dividend?

dee bold, i think it's a problematic situation developing. it's where the shakespeare festival is. you should have asked about bard. i don't like that stock. they have not delivered on their game plan. let's go to marcus in oregon. come on, there can't be threor gon -- oregonians. marcus. >> caller: jim, what do you think of gilead? when do they get out of the dog house? >> if feels like the trail blazers after bill walton retired. th . that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the light round is sponsored by td ameritrade. i'm talking about the rise of the selfie, including their food. i constantly see people taking picture of their food. it's like the old zen riddle. if a tree falls in the woods and there's no one there to post a photo of it on twitter or instagram, does it make a sound?

[ crickets chirping ] you'll probably never take a selfie as good as mine. you remember that classic? tonight's special edition of the lightning round. >> it's strong enough to change the view of last night's -- i'll reveal the king of the merger [ buzzer ] >> this is going to look. >> caller: real quick i want to let you know i ran into a 3-year-old on the street that had a "mad money" binky. >> that's good news. >> it's strong enough to change the view of last night's -- there's too -- [ buzzer ] me through my first options trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias.

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♪ i got to have faith. because i got to have faith, faith, faith ♪ >> call me crazy. >> you're crazy. >> thank you. but i'm a believer in faith, faith-based investing, as in i have faith in amazon ceo jeff ba bezos so i'm going to buy shares in his company. last night amazon rocketed the community by revealing its aggressive plans to spend lots of money in order to win over the parts of the world it hasn't conquered yet as well as to boost initiatives that spoefrt artificial intelligence. on wall street, you don't spring unexpected plans about the need for major spending without expecting a backlash of skepticism. for example, earlier this week, kevin plank, the ceo of under armour talked about how his company needs to spend in order to grow and to gain market

share. immediately his stock plummeted because to wall street, that spending implies lower gross margins and therefore lower profitability. it also means perhaps the demand isn't as strong as we thought, hence the brutal decline in under armour, down more than 25% for the year as investors decide to pay less for the company's shares. that's why the decision amazon announced on its conference call to beef up spending freaked so many investors out last night. that's why the stock dropped 5% today. i'd buy that logic for pretty much every company, every company save amazon. time and again, we've seen amazon stock rise and then have a chunk of its rally repealed when periodically the company sees an opportunity to spend when the return on the investment could be huge. jeff bezos doesn't want to cut off his nose to spite his face or please wall street, which is filled with short-termers. he recognizes that he can't be constrained by what the analysts

and money managers want, which is typically a nice predictable earnings stream driven by predictable spending. nor can he bother with the skeptics who opine he wouldn't be spending as much if thinks were slowing down worldwide. bezos takes his own counsel. people look at these periodic selloffs and wonder why didn't i snap up amazon stock given how much i like amazon prime or the convenience or the speed of delivery, the customer service. the answer is simple. because they get scared off after days like today. they can't stand the volatility. but every time we hear about a big new round of spending, it always leads to that kind of knee-jerk shakeout which means the stock hard to own for the scaredy cats but an excellent stock to buy for those with fortitude. you either have faith in jeff bezos, or you don't. you either buy into his success or stick with something less volatile. for me, this decline is one more buying opportunity in the long upward climbing road that amazon's been traveling seemingly forever. now, that doesn't mean you have to go buy it on monday.

we have real sellers out there and they might not be done unloading the stock. but it does mean you've got a sale going on. would you take advantage of a sale on amazon? if you would, then you might want to take advantage of this sale on the stock of amazon, especially since we're seeing one more iteration of what historically has been a very predictable pattern of accelerated spending precisely when opportunity comes a-knocki a-knockin'. stick with cramer. these goofy glasses.

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you know when you finish a show and you realize that a stock has completely lost in the shuffle and hasn't been addressed, i got to do it. i'm talking about the stock of alphabet, google. this was a terrific quarter, and if the market weren't all over the map today, particularly the nasdaq heavy, i would be pounding the table to tell you that this company, which is still g-o-o-g-l had a remarkable quarter. the ceo tells a fabulous story about why this stock is tremendously undervalued, including a huge buy back they're doing. if you see an opportunity next week, i am going to pound the table this might be the chance for you to buy alphabet. because you know what? it was one of the best quarters we've had since this earning season began. 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, and i will see you monday!

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