5 53.77. it took few days. >> all right. see you back here tomorrow at 5:00 on valentine's day. 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 a west coast edition of "mad money." welcome to cramerica. we're from cnbc one market in san francisco. other people want to make friends. i'm just trying to make you some moifrn. my job, not just to entertain but educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer.

i'll be at cnbc one market all this week for our invest in america, defining the future series. every day i hear the same concerns from both professional and individual investors. how the heck can i invest in this environment, an environment where the president lashes out at nordstrom because they may have slighted his daughter or calls the media fake for not writing about the crowd sizes at his events? and if this was a show about politics, about winning the hearts and minds of voters, then maybe these worries would be very relevant. but i have to ask you, what's this stuff have to do with the all-time highs at all three major indices hit today, dow gaining 143 points, s&p climbing 0.52%, nasdaq climbing 0.52%. i think it's time for those who want to fight this rally to recognize maybe it's not a rally. maybe it's a sea change, a sea change where the market's no longer captive to the things that used to hold it back before the trump administration. we're not hostage to the statements of the federal reserve. do you even pay attention to

them anymore? i'm starting to lose interest. we're not hostage to the wars between the democrats and the republicans as much as the mainstream media would make it be an issue because, well, frankly like it or not, the gop now controls both congress and the white house, and they're calling all the shots. instead, we're now captive to far greater forces than most people realize. i say this because when i scrutinize the all-time high list we had today, wow, it's this long. i recognize that with the exception of a handful of defense contractors relying mostly on the u.s. government, i see stocks that are rallying thanks to the prospect of worldwide economic growth without worldwide inflation. i know we want to view the united states as the engine of the world, the locomotive that's driving global growth. but when i see the stocks of the giant industrials and transports that are leading this rally, i'm talking about household names, deere, honeywell, cummins, parker-hannifin, norfolk southern. i say to myself there's something bigger going on than the tweets. when i see all the bank stocks hitting 52 week highs, i know that loan growth must be going

up, and the banks must be unshackled or at least soon to be unshackled. when i see the techs roaring and perhaps most important apple hitting a new high, i know that those who want to scale back their investments because of worries about trump may not realize that trump too might be swept up in something bigger given the breadth of this incredible move. let's not bury the lead too badly, though. we're out here in san francisco this week because we want to know more about what's driving so much of this market's underlying strength. sure, the animal spirits can be a powerful force behind so many different groups breaking out, and to be fair to this market, which i don't think ever gets its due, i've never seen so many sectors break down at once. however, so much of this rally has its roots in what was invented here in silicon valley. think of it. now when you see the industrials flying high, you may say to yourself, hey, it's because they must have great orders. orders galore. however, what i say is that these companies have so much technology within their walls that when they do get some

incremental additional orders, they're more profitable than ever before. when you see the bank stocks vaulting higher, they need to think about all the mobile technologies companies are using to maximize their profits, profits by the way might have been halved or worse if not for the innovations we're going to explore out here. that's what you need to be thinking about. believe me, for apple to hit a 52-week high, let's just spend a few moments talking about the most widely held stock in the universe, one with a $700 billion market cap, about 200 billion more than when ceo tim cook came on our show 40 points ago and had to fight to be heard over the critics and the doubters with their drum beat about how his company's best days were behind it. in many days, apple is a consortium of winners. it's everything from the semiconductors, the glass on the screen, the software that powers the apps to the phone companies that are now at war to get your business as we saw today with

verizon. do any of you honestly believe that apple's stock price is determined by the white house? sure, the company has a huge cash hoard overseas that it can bring back to the united states if the president and congress pass their legislation on reiation. what's really driving the stock of apple is something quite different. it's the realization that worldwide sells are coming in better than expected. its service revenue stream is on fire, and its design and manufacturing supremacy is leaving longtime competitor samsung in the dust. yes, apple is the perfect counterargument against everyone who keeps saying we're only one trump tweet away from a break in the market's trajectory. granted if apple doesn't get the pick of the engineers it wants worldwide because of visa restrictions, then maybe samsung will eventually get the jump on them. in truth, the strength of this company is not confined within the united states' four walls. it's throughout the globe, and while our president favors

america first, apple has a customer first philosophy that clearly knows no borders. we've been coming out here for a couple years and it's worth noting every time we come out here in the past, what do we have to emphasis by default? fang! the reason, because back then those were the only stocks that people would truly pay up for since they had real growth that wasn't supported by the federal reserve, and its desire to keep interest rates low. what a negative they're fif that was. now, though, there are many other stocks that have caught fire. fang is not an afterthought by any means. it's still front and center, particularly amazon by the way. this week we'll be talking about how non-tech companies have figured out how to harness services by using technology by guests. links into the cloud makes them more relevant to the emotional, the social, artificial intelligence, the themes that fang names have inspired. let me give you the bottom line. we're here to examine the new

industrial america, but this time i think it's the old industrial america that's using what's invented here to dominate and prosper in a world that's stronger and less bound to the white house than many people realize even as lots of investors still think trump is the only thing driving this move, and he can take it away with an errant tweet. personally, though, i think it's about a lot more than that. it's about a global recovery that is obscured by domestic politics but is breaking out in the averages whether we like it or not. let's take some calls. let's start with joe in new jersey, joe. >> caller: hello, cramer. thanks for all your great advice. my stock is vector group. with british americans acquisition of reynolds, does one big tobacco merger signal more mergers to come? should i hold or sell? and by the way, i'm not a smoker. >> well, i'm glad you're not a smoker and i've got to tell you i liked your choice because

there's more to the vector group than just the tobacco business. i want you to hold on to it. i think it's a good stock. it's not exactly in keeping with what we're doing out here, but that doesn't mean it can't fit into a portfolio. how about bart in texas, bart. >> caller: my game stop security, ticker gme, is down 55%. should i sell or hold? and also send us some better football players, please. >> man, that's a tall order. all three of those are tall orders frankly, but the tallest order may be to stay long in game stop. i think it's uniquely a mall play. i got the activision, i got the take two interactive, all better than game stop, even up here. swap out of game stop into any one of those three, and i will be a happier man. and i want the aggies to win too. let me just throw that in just for the sake of conversation. michael in new york, michael. >> caller: hey, jim, i'm just looking about johnson control. i'm looking to dump some of my

tjx at cost and by some johnson control below my cost basis. what do you think? >> frankly i got to tell you, michael, you know i like johnson control and my charitable trust, which you can follow along at ax a, finally took a little profit in tj. johnson controls is not moving like the others. i think you've got to think about another industrial. a 3m or a honeywell i think has more game than jci. listen to me, this isn't a rally. it's a sea change. we're captive to great forces and much of that rally has its roots in what was invented here. how about just around a few blocks? on "mad money" tonight, the future out here in cnbc one market in san francisco is bright, and the dow may have just logged its 22nd record close since the election. do not get too cocky. tonight i'm eyeing one rally that's worth some skepticism. plus it's at the intersection of some of the market's most exciting trends. my exclusive with vm ware is just ahead. but first, he stood side by side with president trump to anounls

billions of dollars of investment in the u.s. just day after criticizing his order. don't miss my sit-down with intel's ceo. it's a rare one. 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.

it's all coming together in the metals markets, or is it? is this the ultimate trump group as the global economy grows stronger and we get the buzz of infrastructure spending in our country and others, or will other areas with more sustainable businesses soon pass it by as i discussed at the top of the show? one thing's for certain. we've got a barn burner going on in the metals with copper. you could argue this move has been caused by better demand as there's some evidence that the

worldwide growth is improving authorize fees metals. still, those, it's anecdotal, the iea saying energy demand might be growing. cummins calling the bottom in china. auto sales in europe coming in strong. the positive move in the ruble. strength in aluminum and still as well as last week's cliff's natural resources report last week. last friday's 4% spike in copper on behalf of the decision to declare force ma injure because of a strike at its es condo dee mine in chili only furthered the tightness. that's on top of the decision earlier last week by freeport to slow production at its mine in indonesia. but the one thing we really can't see happening, the one thing that would make me more comfortable about the whole commodity rally would be some sustained demand somewhere behind the current cutbacks in dirty commodities in china and the sense that business isn't going down in the u.s. thanks to stronger employment. what would we need to see to

believe these commodity prices can be sustained? how about accelerating auto sales both here and worldwide? by all accounts, auto sales have stalled here and are not growing that much elsewhere. when you're talking copper, you're talking homes and apartments. while we only use about 10% of the world's copper versus almost 50% from china, our home sales seems to have plateaued for the moment. plus we have myriad stories of chinese overbuilding. so other than the pollution curtailments involving the closure of dirty smelters, i don't get a sense of economic demand. commercial construction growth is coming back in this country, and american electric power. but it's certainly not fast enough to elevate these commodities any longer. europe's got some strength. you know i believe that. but i don't look at it as a commodity booster. same with latin america. i don't see that much happening in asia away from china that's any exception. can we count on the chinese to keep cracking down on pollution even it means more unemployment?

then they waver when their efforts start to have an impact on jobs. there have been many calls to buy the steals, the irons, the coppers with china being accentuated. not once have i seen anyone justifying these upgrades with real world evidence that demand is improving. no one is factoring in the possibility of trump coming after the chinese for taking american jobs even though these dirty cyclicals could pay the price for any retaliation. these stocks can rally so far before we're stuck looking for growth. i can say you can trade the metal stocks, but i don't know if it's a good idea to invest in them. beware that the trade is already long in the tooth unless we start seeing demand accelerate from these low levels. so far, though, as much as i strain -- and boy am i straining, i haven't seen it yet. plenty more "mad money" from cnbc's one market in san francisco is dead ahead. >> announcer: coming up, intel

wants to build the next generation of computing power. and to compete, they're going to build it in the united states. jim is on the ground in silicon valley when "mad money" returns. your insurance company

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if something doesn't seem right, so everyone comes home safely. because safety is never being satisfied. and always working to be better. intel is very proud of the fact that the majority of our manufacturing is here in the u.s., and the majority of our research and development is here in the u.s. >> announcer: from their earliest days, their biggest strength came from within. but does intel have the vision to write their own future, or will the chips fall where they may? all this week we're camping out at one market in san francisco so we can talk to some of our nation's finest and fastest growing companies as part of our invest in america, defining the future series. how can we not check in with

intel, whose ceo, brian krzanich had a one-on-one meeting with president trump last week where he announced a chip making company in arizona. it's been in the works, about you it was still a very smart move for intel. while we like this company seems to be in the president's good graces, what really matters here is intel is a company in transition. the intel of old was all about making processors for personal computers but now that the p.c. is no longer a growth business, they're diversifying in some of the hottest markets out there like drones, artificial intelligence. that's part of the reason they were able to deliver a strong quarter two and a half weeks ago although since then it has pulled back a couple of bucks. still i think this company's transition could unlock a lot of more upside if you're willing to be patient. let's take a closer look with brian, get a sense of the transformation unfolding. good to see you. i think of intel as intel inside. sometimes i think that ad campaign has limited the way we think of intel because you're

big in artificial intelligence, machine learning, data center, and that's not just what's inside the p.c. >> that's true, but we've tried to think about it as expanding. so we're inside anything that consumes, uses, or processes data. and the data center is a great example of that. everything you saw at the super bowl, everything you see us getting into, whether it's autonomous cars or drones, it's all -- >> the drones at the super bowl obviously just an extravaganza that was your own that other companies can hire and do. >> in fact, that's become a business where, you know, again, large amount of compute to manage hundreds and eventually thousands of drone in the area at one time. >> now, there was a sense in some of the media that you just met the president and you had this thing on the drawing board and you took credit for something that was going to happen anyway. that's actually not true, right? >> no. in fact, this was all about tax. if you take a look at that factory that we're going to build out in arizona, with the

current tax system that the u.s. has relative to building that overseas, $2 billion additional cost over ten years. the tax plan that the administration is putting forward would drastically reduce that. there's a lot of questions, so we're betting on that tax plan coming into frufruition. >> when you met with the president, what was it like? i don't mean to be like a groupie about it, but you've had the best one-on-one i know of anyone in tech. meaning most substantive. i thought you could share some of the things you went over. >> for us, it was really a chance to start the dialogue. you know, with every administration, and really in every country that we operate in, you have to start a dialogue by building a relationship and understanding what their needs are and what our needs are. so it was a good chance to sit down and talk about everything from immigration, tax reform, our position on diversity and

women and underrepresented minorities in the workplace, and all of those areas we're able to talk to both the president but also really substantive time with his staff. you know, after that meeting, i spent a solid hour and a half in the white house talking to his staff about thosetopics. >> to gary cohn? >> to gary, to reince, ivanka, his whole staff about those different subjects. >> you wrote a very thoughtful letter to your employees where you made it clear that you've got to be part of the conversation. was that received well, or did people who say, you know what, this is time for battle lines? >> so we not only wrote that letter, the next day i flew back that night, then sat in front of my entire organization in a web cast and talked to them about why we did it. then we took a poll afterwards to see how did our employees perceive us as a leadership team, our position, and we had over 80% positive response that we were being transparent.

that we're doing the right thing by being at the takble. >> that's higher than i thought. i think you presented in the letter as a way that really has furthered all the stakeholders' interests, not just the employees. >> exactly. and we're not going to change as a company who we are. we stand for those values that we believe in. >> now, i have articulated several times on tv -- you could argue maybe more than several times -- that nvidia is the great growth engine. it's a great company of artificial intelligence. what i think your company has such a huge install base in p.c.s. $32 billion market. that it's hard to see how much else you have. it's almost as if you've got something that would be so big for another company isn't that big for intel. >> yeah, and you remember our data center is an $18 billion business with great margins and great growth. double-digit growth. so we think about this. if you take a look at artificial

intelligence, it's a small piece of the data center workload today. 7% to 10% of the workload. but it's also one of the fastest growing. but if you take a look at machine learning or deep learning, whichever one of those workloads you want to look at, simple machine learning, how you get your amazon videos and things like that, or deep learning where you're solving problems about facial recognition, 90% share and above is intel, running on intel architecture. we've made investments in machine computer vision. we have zee on. we have zee on5. he bought a company called nirvana which is a special architecture that is designed for artificial intelligence. two to three x the performance by the end of this year of a gpu-based system. by the end of this decade, we think we can get that to 100x, the performance. >> are you doing things that we can't figure out what we'll do yet but we know that we need

them? >> we're doing things -- we're always thinks about technology five years out. >> right, because you do that. by 2020, coming flood of data of which there are not many companies thinking as big as you are. >> that's wait we look at it. today i talk about the cloud is based on people. it's your tweets. it's your e-mails. it's your facebook posts. the cloud of tomorrow is going to be based on those autonomous cars, those drones that are flying through the air. the autonomous car puts out as much data as 3,000 people. one car is 3,000 people's worth of data. put a million cars on the road, that's equivalent to half the population of the world in data. so we think about the world like that. that's where we see the data center going. >> what would happen -- just speculation on my part. what would happen if you hived off the cpu business? i know it generates a huge amount of cash, but your price to earnings multiple would have to expand dramatically. >> if we took off the p.c. or --

>> yeah, took out the pc which we know you as, but mentally as a gating factor. >> but you have to look at how intel really operates. we're basically a silicon company, and that p.c. business, you saw record operating profit on a declining unit. it's a classic -- i mean someday harvard will write a story about how well that team has managed that business to profitability, increased profitability in a declining market. that business then throws off the ability to generate all that silicon intellectual property, all the architectural intellectual property and fund all of the research and development we're doing all the way out to things like quantum computing. >> why do you feel the need, though, to say we are a data company? why isn't that just by nature that you're a data company? it seems almost like you have to change people's perception of the intel that we know. >> so if you think about it,

yes. the reason is right now if you take a look at it, like you said, 32 billion of our 60 billion almost -- 59.5 billion is the p.c. but as i go through the rest of this decade, by 2020, the data center, the autonomous cars, all of those other things will be bigger than the p.c. so we have to start shifting people's thinking that we are a data company because that is where we're headed, not where we are. >> so last week, one of your product lines you said may be growing slower. it was almost as if the world came to an end. how does that happen given what you just said about artificial intelligence, machine learning, why should we even care about a single line item that may be growing a little bit slower? is that just wall street speak? is it hedge firnd speak and we should be thinking bigger? >> in some ways it's good news for us. it says the enterprise segment, the segment that is the classic

data center at a company like cnbc, is declining at a faster rate, and the cloud is growing at an even faster rate as a result. those workloads are going to the cloud at a rate faster than even we anticipated. that's okay. it means that our business is in a transition there as well. and as we bring new technologies, we believe we'll grow at even a faster rate in the cloud than we did in enterprise. 3-d cross point, silicon photonics, omni path fabric. all of those technologies are going to dramatically reengineer how the cloud is architected today. >> by the time we get there, will it be one of these things where it's like ibm where they went to faster growth, but they also had this legacy business that dropped off? or will the legacy business just kind of stay there, and this faster growth business will overtake it one day? >> so we believe we can keep the p.c. healthy. >> okay. >> and we can continue to gain operating margin in that space. >> all right.

>> so we should stay there. and what you'll see is that the data center will overtake it as we go into the next decade. >> that, to me, is a very low-risk, high-reward way to invest if you're someone at home watching you. >> that's the way i think about it, and that's the way we are driving the company. >> i'm a believer in it. that's brian krzanich. he's the ceo of intel. stay with cramer. what's critical thinking like? a basketball costs $14.

what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

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global leader in cloud infrastructure and what's called virtualization. in fact, it pretty much pioneered the technology behind virtualization which lets you create many virtual machines on a single physical server, something that's become almost essential as so many businesses migrate to the cloud. it's also integral to the data center, one of the hottest areas in tech. we know it's in excellent shape. they also rolled out a major $1.2 billion buyback. in part that's because the company got a new deal with amazon, and it's been blowing the doors off business worldwide ever since its old parent, emc, was acquired by dell last year. that's part of the reason why its stock has been such a strong performer over the last 12 months. can vmware continue to rally, though? earlier today i got a chance to talk with the ceo of vmware and sanjay is the coo to get a better sense of where the company is headed. take a look. >> i think you guys may have the strongest business that i saw year-over-year. patrick, let me go to you first. what is the secret with vmware

because a lot of people want to know, like why do we want to detach the cpu and memory from the actual hardware? what's the virtue of hiring vmware? >> well, the magic that we've done -- and, remember, i was 30 years a hardware guy. so it's like, you know, right? and i remember the first time that the vmware execs came to me and says we can turn one physical cpu into ten virtual cpus. it's like why do i want to do that. i'm the hardware guy. i want to sell hardware. >> you're going to save people a fortune. >> but the magic of turning it into software means it's more efficient. server utilization, 70%, 80%. the ability to move things to software, this idea that workloads can now be agile and move anywhere, and instead of having to provision hardware that may take days, weeks or months, it's now seconds in software. and that business agility and efficiency just changed the industry. and now it really is a forerunner to everything cloud.

you know, every data center now, 80% of all workloads being run that way. >> i know recently -- i'm going to use the term i read in the research. you hugged it out with amazon. amazon web services so powerful in the cloud. it looked like a lot of people felt you were going to be doomed to competing with them. that is no longer, sansanjay, t case, right? >> this is one of those seminal partnerships. the leader in the public cloud meeting the leader in the private cloud. we've have been working on this partnership, and it benefits great clients. so, for example, we take mcdonald's, they were on stage. they're a big customer of ours, and merck. there are many other big, big brands. these are customers of ours and theirs. we're a de facto standard. as we build much of our cloud journey, this is a marriage made in heaven zblmp. >> it really was the fact that the leader in public coming together with the leader in private. lots of people said, hey,

workloads are moving to the cloud. really what is happening is workloads are being built in the cloud, but existing workloads are hard, and the idea that we came together, the best of breed in both, to deliver a seamless experience for customers has been absolutely game changing in the industry. >> you've been a first mover for a long time. i read through the research and i keep seeing this undercurrent that microsoft has figured it out and they've got the web. where do you think they are versus you? >> well, microsoft, good company. you know, we've worked with them and competed with them. you know, i was the wintel. i did more partnerships with microsoft than probably any human on the planet. what's happened now is amazon really has set the pace in the public cloud. in vmware, 80 plus market share. that's the leading combination. that's why customers say, the

microsoft thing, that's interesting. the leaders coming together to set the pace in the industry, that's game changing. >> one of the things talked about in washington is the idea of lots of money being repatriated. i was looking at your balance sheet. you do have $7 billion overseas. you've got a fabulous buyback. you've got the ownership by amc, now dell. would you just keep buying back stock? you have a lot of excess capital. >> you know, we've been buying back well ahead of our normal dilution, so this has been very shareholder-friendly. >> the stock's been a rocket. >> yaeeah, the stock's responde well. we just announced on our least earnings call, an additional 1.2 billion that we'll execute this year, again, well ahead of dilution. we're generating cash beyond our requirements for business. we're going to use it for m&a. we're going to use it 230r for stock buybacks. >> the administration comes with a lot of baggage and a lot of opportunity. i want to get a sense on how important it is for you guys to

have the students with visas come here, immigrants with visas come here so you can maintain your leadership. you've got leadership. would you lose leadership if you decided it was america first? >> it's amazing, you know, for me personally. i'm an immigrant. i came to this country in 1987 on a scholarship to go to dartmouth. it was a fantastic opportunity. i grew up in a poor middle class indian family. there's no way i could have afforded this type of opportunity. then coming out of the silicon valley in 1991, this is an amazing place where if you work hard, smart people, you can do well. i think it continues to be a place where we are looking to be pro-business, ways in which we can welcome the appropriate immigrants. we've got a number of very strong u.s. locations. pal low, alto, atlanta, and others. we've also got employees in other places and we exsport a lot of our software elsewhere. this issage important area.

i think there's an opportunity where we can have a lot of impact now in the grander world. digital transformation is here to stay and technology. our general philosophy is software changes the world. so when we think about the way in which software -- software is our birth right. silicon valley and the united states. it's the reason people like me are here. >> and it's so important, jim, because this idea of digital transformation, i mean software is taking over. but also digital transformation, as i say, tech is breaking out of tech. it's touching every aspect of the business. and that impact on a world basis says, boy, we're not just the leader today. we could be the leader for decades to come. >> is that why you talked about in the conference, you mentioned japan is a barn burner. but right after that, you said all regions have growth. is that because of a secular trend towards software, or is the world getting a stronger place? >> i think overall there's a demand for tech. leading tech is an important differentiator for businesses on a global basis.

whether you're a boring, you know, supply chain company, a steel company, a financial -- >> how about an exciting hotel company, marriott. >> oh, marriott has been a big partner of ours. >> why? >> because, what they find is hey, they're running some of their oun data centers. they run reservation systems. you know, they are increasingly having an online relationship with their customers. their customers show up to the hotel, straight to the room. they're already checked in. all of those types of things differentiate them, and they are acquiring global companies as well. so they need a global footprint. they need global differentiation as they compete on the world scene. >> i got to tell you it's one of the strongest companies, strongest stocks. i really appreciate your coming on because we don't talk enough about your company and yet it has been the world leader for ages and just took this next

step with amazon. i want to thank you. thank you so much for coming.

my mission is simple, to >> announcer: lightning round is sponsored by td ameritrade.

it is time! it is time for a very special west code edition of lightning round. that's where i take your calls rapid fire. you tell me the name of 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 hank in nevada, hank. >> caller: hey, booyah, cramer. >> booyah. >> hey, i just wanted to see what you thought about chk, chesapea chesapeake. >> it's the year of natural gas. people don't realize it yet because we've had so much warm weather. i think it's a buy at six. let's go to paul in new jersey, paul. >> caller: love your show. great source of information. i have to thank you for helping build up my inheritance. >> i did go. >> caller: networks. >> they missed the quarter. therefore i can't recommend it. got to wait for the next quarter. how about leon in new mexico,

leon. >> caller: belated birthday booyah. >> thank you. what's going on. >> caller: took a quick profit on lions gate and thinking about buying back on a dip. >> look, you got a nice gain. let's not look back. i think the story was told. you got the good quarter and now we got to find something else that's better. stuart in michigan, stuart. >> caller: hi there, jim. i'm looking at priceline.com. >> why are you looking? why are you not buy something this is one of my long term recommendations. i think it remains a terrific situation. i don't get the -- let's say the derision that the company faces each time it reports a quarter. it's a good stock. bill in north carolina, bill. >> caller: booyah, booyah, jim. listen, i've got duke energy. >> as long as you're buying it to be able to get some income otherwise i don't need duke energy in my portfolio. mark in pennsylvania, mark. >> caller: big bad booyah from

bethlehem, pennsylvania. mercury general. do you recommend i buy more on a dip? >> you know what, there's so many insurers that i like better. i like travelers better. i like all state better. i'm not going to recommend mercury general. jim in north carolina, jim. >> caller: booyah, jim. >> booyah. >> caller: jim calling from sunny charlotte, north carolina. i wanted to ask you about schlumberger. are you still bullish on it? >> i'm pounding the table, schlumberg schlumberger. my charitable trust owns it. we've been telling people, club members of actionalertsplus.com, slub at this level is the right level. bill in south carolina, bill. >> caller: hey, jim, how are you doing today? >> i am doing good. how about you, bill? >> caller: i love it. south carolina's good and warm. i need your opinion on immune medics. >> i do not think they have what you need. i will tell you this, though. i think there are some biotech

companies that i like that are down on their luck right now. that's not one of them. i still think celgene deserves to trade at a higher multiple. let's go to andrew in new york, andrew. >> caller: booyah to the master. >> thank you. >> caller: sew knowco is very busy. there's stations up my way, and their dividend is fabulous. i wonder if i should stay with them. >> see, i think that dividend is a red flag, sir. i don't know how they're able to maintain that. that caused great concern. i do think that's part of a conglomerate of companies that i think is overvalued because i do not think they can sustain the cash flow to be able to pay the dividend. they're welcome on the show to explain why i'm wrong. let's go to billy in new york, billy. >> caller: booyah, cramer. happy belated birthday to you, buddy. >> thank you. >> caller: just wanted to give you a shout out to my niece and nephew, jake and emily who very soon will be running "mad money" right next to me on my couch. >> i love them. great to have them on board on your couch. how about a stock? >> caller: because i religiously watch your show, i was introduced to a stock and made

some mad money. zel tech. >> well, ka-ching, ka-ching, because allergan turned that into one gigantic winner today. that's up more than 13%. and that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. ♪ it's not just a car, it's your daily treat. ♪ go ahead, spoil yourself. the es and es hybrid. experience amazing.

>> announcer: who keeps their eyes on the wireless world wile you are watching and can its

stock raise eyebrows? while we're out here in san francisco we usually talk about new relic, a stock that's totally caught fire over the last six weeks. for those of you who don't watch the show religiously, shame on you. it's a cloud-based software company with a unique neariche. how their users are interacting with it in realtime. its analytics engines gives companies a ton of insight into their own digital operations they probably wouldn't have otherwise. last year kind of a forgettable year because the stock sold off hard in early 2016, but it was like so many other cloud names. it spent the rest of the year recovering that lost ground. but 2017, already shaping up to be a very different story. first near the end of january, new relic suddenly got red hot when we learned that cisco was acquiring app dynamics right before the company was set to come public. new relic stock popped more than 10% on the news. that was just the beginning because then last week the company reported a terrific

quarter. new relic delivered a smaller than expected loss, higher than expected revenue, up 43% year-over-year, and very strong guidance for both the next quarter and the full year. stock didn't rally much after the quarter but i think that's already because it had spiked 10% the week before. can it maintain its newfound momentum? let's check in with the founder and ceo to learn more about the quarter. welcome back to "mad money." >> it's a pleasure to be back here. >> lou, since we've seen you last you kind of got a landmark deal with amazon web services. i want you to tell our viewers about it because it is so important to your future. >> well, it is because it's so important to our enterprise customers. look, there are two big trends happening right now in the enterprise. one is the digital imperative. you have to reach your customers with digital. the second is the secular move to the cloud. companies are getting out of the data center business. so while these big changes are happening, they need a dashboard to see how their software is running in the cloud. could be amazon web services. could be google's cloud. could be microsoft's cloud.

could be ibm's cloud. new relic provides that realtime dashboard into the business. so what we announced on our earnings call is we're partnering with amazon as we do with other cloud providers in a variety of ways because together new relic's dashboard plus the new infrastructure platforms provided by cloud providers helps enterprises make that migration. >> let's conjecture here. if we didn't have you, if it was a bricks and mortar store, we know there's no customers coming in. what's going on. is it possible to tell if you're domino's, a good customer, that something has gone wrong without new relic? >> our customers tell us time and time again after deploying new relic, they feel like they've gone from being blind to seeing, seeing their digital business. let's take one of our customers, domino's. imagine super bowl sunday. think of how many pizzas were ordered on the phone. what if that app wasn't working? what if the servers couldn't handle the load? domino's could see in realtime

the health of that system and make sure those applications could order those pizzas. that's the heart of their business and we're proud to serve them that day. >> another company we have liked very much, six flags, what do you do for them? that's been a huge winner for us. >> if you look at six flags and other them parks, digital is transforming the customer experience. on your phone you see how long the rides are. six flags, they've come on record saying if you get on your seventh ride in a day, that's going to dramatically improve the customer experience. and the mobile app helps make sure every customer can get that seventh ride. and new relic makes sure that's working. >> now, when i saw cisco buy a competitor of yours, i immediately said is that going to be good news or bad news for new relic because cisco is a big dog with a lot of cash. >> cisco is a great company. it's undoubtedly good news for us. if there's one thing that's clear, our enterprise strategy is winning in public cloud environments. that's where we dominate. and cisco is a strong company with a particularly strong and on premise deployments obviously with the network center of

gravity. strong company, but their strength is on the on premise workloads. there's a healthy size market but the future is in the public cloud and that's where we're headed. >> speaking of where you're headed, one of the things i know some of viewers -- i love the idea of the dashboard and what you do for these companies. people were concerned and say jim, this is a company with great revenue growth, but when is it going to make money? >> jim, we've got amazing economics. not only do we deliver 43% year-over-year growth last year. we also improved our operating margins by 1,500 basis points last year, which is we think a fantastic testament to the health of our model. we've got 83% gross margins. that's very rare in enterprise. we think it's best in class. we've been consistent in our messaging that by the end of the next fiscal, about a year from now, we'll be a cash flow positive and an operating profit company, non-gap operating profit. but we're a growth company, and the strongest growth is coming from our enterprise segment. >> when cisco bought your

competitor, did you immediately worry that someone might buy you because i know when i spoke to you last, that's not your goal. your goal is to grow this company. you don't want to end it right now. >> look, we just see this amazing opportunity. these trends i'm talking about, digital and cloud, we're in the first inning of this transformation, and we're in the position to dominate in the public cloud segment. so we've got this amazing opportunity. you know, the acquisition of dynamics certainly serves. but we see a great opportunity as an independent company, and that's how we're going to run the business. >> i agree. the way i look at it is your market cap is too low versus the opportunity ahead of you. that's lew certainny, the founder and ceo of new relic. the stock is finally reflecting the greatness of what they offer. "mad money" is back after the break. [vo] quickbooks introduces rodney.

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i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money." i'm jim cramer. see you tomorrow from cnbc one market in san francisco. what on earth

are they fighting here? whatever it is... it's hunting. the great wall. rated pg-13. ♪ >> narrator: in this episode of "american greed"... >> please send everybody you possibly can. officer is down. >> narrator: lieutenant joseph gliniewicz is a small-town cop gunned down in the line of duty. >> it was real scary. things like that don't happen in fox lake. >> subject is armed and dangerous. >> narrator: as police search for three suspects, the community mourns the loss of a leader. >> everybody who knew joe just loved him and adored him. >> there were tons of little kids holding signs with his picture on it. they looked up to him as a hero. everybody did. >> narrator: but when the investigation hits a dead end, all eyes turn to the officer himself and the youth group he