>> i could tell the bond you and rumor have between -- i mean rumor has it. >> get that camera back on. priceline. if it doesn't go down today, it ain't going down. >> thanks for watching. "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 one market in san francisco. 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. i wish the market weren't so

darn stupid lately. maybe president trump's thrusts have thrown investors off their game. but i'm becoming increasingly aware information not being valued accurately day after day. it's a big factor in the rally. dow up 8 points. s&p back slid 0.09%. nasdaq declined 0.08% which can only be regarded frankly as a successful consolidation of the recent run. take last night. take cisco, the giant networking equipment maker, morphing from a hardware to a software company. it reports revenues that look anemic, and the stock gets banged down instantly. i'm sitting there, having done a ton of homework for tonight's interview with the ceo, and i can see from the deferred revenues the real number, the real metric that matters in a software company, that it's actually a much better than expected quarter, especially when you compare it to the previous one. i'm aghast that once the stock does tick down, the journalists are out in full force.

they're justifying debt klein in a self-fulfilling miasma of reporting, like this gem. cisco's shares dip as it reports a 25% drop in after-tax profits, end quote. that's by a seemingly reputable news agency. it's a never ending battle that sometimes gets won the next day as was the case with cisco which immediately and correctly rallied, ending up as the strongest performing stock on the dow today, closing up more than 2% as cooler heads pre-vated. how about accept kico. yesterday the company reported a much better than expected quarter. it had exceptional growth and then offered a forecast that took in the obvious challenges of foreign exchange given the super freakin' strong dollar's ascendancy. what happens? the stock nosedives and the stories about how pepsico cut its forecast and now expects weaker sales appears if by magic. then the sellers reload and new ones come in scared by the new stories, and they throw away their stock. pep rapidly becomes one of the

biggest decliners in the s&p 500. i'm practically screaming at the machines about how wrong the sellers are. so i ask questions of hugh jo johnston in a "squawk on the street" interview that are meant to quell the panicked selling. i wanted to elucidate how this was a much better quarter than anything we saw from its companions in the consumer products group. johnson totally delivered. nah, but the moron sellers, they had their minds made up that somehow this was a true guide down based on slowing sales and they just kept dumping it down to 105 bucks. painful. what happens today? a total reversal, of course. up more than 3 bucks from the lows because people figured out that perhaps pepsico is just being conservative and adjusting a fabulous forecast, truly strong with good for you products accelerating and business well ahead of plan. the dollar caused the pain, not the product, darn it. the sellers should have known because the exact same thing happened to the stock of adobe when it reported.

a total currency-related cautionary comment, and what happened? the stock dropped more than 3 bucks before then rallying 17 points in almost a straight line. it was a furious rebuttal to the uninformed sellers. we saw a similar pattern with 3m recently. it got crushed when it reported falling from 178 to 174 because of what the headline writers called a weak consumer products division. sure, you can pull a line and see an unexpected decline, but declines don't necessarily mean weakness, a term which to me connotes a failure to have the right product and flagging sales, poor execution. if you listen to the conference call, you discovered that 3m's softness had to do with a particular problem, not with 3m. you trust them because the ceo has been money in the bank for years, and he's earned the benefit of our doubt. maybe it dawned on people that inga's consumer products are doing just fine because 3m stock is now up nine straight points

and it's really breaking out into hitherto unknown levels. where she stops nobody knows. sometimes it's a little more subtle. take chipotle, the numbers looked terrible when they reported but if you were following the company's trajectory, you would realize chipotle is beiseeing the turn business we've been forecasting. history dictates you can't get a rally in the stock until 18 months after the last health scare. we're only in month 14. the idea that the stock should be hit on numbers that show progress, that seems a little strange to me. that is until we saw a barron's article that weekend predicting a 35% decline in the stock. all told chipotle sinks from 423 to 395 on what were numbers you needed to see. wouldn't you know it? what happened? since then chipotle's bounced back, 424. hey, no harm, no foul unless you

sold it. speaking of food, i really liked the mcdonald's conference call. the forecast looked really strong, augmented by some big changes courtesy of ceo steve easterbrook. somehow, the narrative got hijacked giving you no reason to own the stock of the golden arches. sell, sell, sell. no reason to own? how about all the tech that he's putting in? how about the menu changes that he's been tinkering with that have improved the company's numbers around the world. it was a stunning comeuppance by those who simply looked at the calendar, saw easterbrook put through all day breakfast. the stock's up five points since then. i think you can go higher. sometimes there are clues you can find if you put in the work but they get lost in the trump press conferences, national security, labor appointee resignation. ever since micron held its analyst meeting saying nothing but good things, that stock has been drifting lower.

i've liked this one since the mid teens and at just below 23, down from 25, i like it still very, very much even as i get blasted on twitter of course for ruining people with that two dollar decline. last night i'm listening to cisco's fabulous cfo kelly cramer and she's asked about why the gross margin for some products was weaker. she said there was a headwind to the quarter, and i quote, we are facing a significant cost increase to our d ram memory costs that we are paying. it's a very tight supply right now and we are seeing dramatic increases there. guess what, micron makes those d ram chips. it's a boom bust business that's now firmly in boom territory, which means although people lambasting people about this stock on twitter have a chance to buy it down two bucks from its highs and down a lot more verz where it should be. i figure i could spend the rest of the day tweeting why micron stop is up.

no, nothing. micron's stock actually went down today. hey, there's an opportunity. i don't get it, but it's just like all the other stupid things i just mentioned. the fact you're getting this kind of opportunity is down right crazy, insane, and lazy. but here's my bottom line. when you see a stock that's down and then you read a headline that tells you why it's down, don't automatically presume that either the stock or the headline is right. go deep. read the reviews. find out what people were saying ahead of time and grab that conference call. go to the end of it. y you'll be doing far more homework than others are doing and you could be starting a good investment instead of dumping one because of a thoughtless crowd and its amen wres chorus turned you against it. let's go to harold in my home state of new jersey, harold. >> caller: what's up, cramer. this is harold from new jersey. >> i miss new jersey. i miss all the pollution. >> caller: oh, yeah, you're really missing a whole lot. >> yeah. >> caller: anyway, question. tesla has been running all over

the place. last few days, it's run up. it's coming down a little bit. as a trader, you know, i've been doing pretty well. but now i bought some up top, and what happened today? it slammed down. >> remember, you got the quarter next week. there are guys that are saying listen, the quarter can't be that good. i don't like to buy the stock after it's run tiny a quarter. i want you to be careful but then again, it's tesla. it is loved. the president loves elon musk. musk thinks i'm a simulation. let's go to steve in california, steve. >> caller: hi, jim. steve from san louis obispo where rain is falling like manna from heaven. >> really? geez, we still have nice weather here. it's probably coming our way. what's happening? >> caller: i've owned raytheon about 15 years. dividend reinvestment the whole time. now worth, including dividends, about ten times when i initially paid. it's nearing it's all-time high with lots of recent good news, and i was thinking of selling

and holding the cash for any upcoming correction. is now a good time to sell raytheon? >> caller: steve areno t sells at 20 times earning. it had an oak quarter. i'm going to say ixnay on that. i like raytheon. this market can be real stupid sometimes. but you don't have to be stupid with it. dig deeper. don't presume the headline is always right or the stock action for that matter. on "mad money" tonight from cnbc one market, my sit down with twitter coo anthony know doe. you know what, we're going to hit it all. then my exclusive with tech giant cisco after those blowout earnings. find out what has the stock moving much higher on today's tape. but first the one experience i had this week that changed my view on an up and coming industry. don't move. 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.

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>> announcer: it's played host to an ongoing american drama. >> we did just get a tweet 6:34 a.m. from the president. >> the relationship between trump and putin, we see the tweet. >> and while president trump makes headlines for his use of twitter -- >> announcer: it's an inner monologue for millions of users, but it's also a stock that's fighting for its future. to add profit to popularity. tonight we need to address one of the great mysteries of the stock market. why can't twitter seem to get its act together? here's a company with a hugely popular platform, had 319 million monthly average users worldwide. it's the president's preferred method of communication. you could argue it got him elected. and every now and then its stocks seems to capture our imaginations but twitter always seems to struggle when it comes to actually growing the business

or even articulating a corporate strategy. take last week. twitter's stock had been trading up, seemingly trending toward 20 bucks. then it reported. ed guidance for next court was down right atrocious. it got hit with a wave of analyst downgrades. so what do we do from here? many people argue that the prospect of a potential takeover puts a floor underneath twitter stock and the big insider buys from the ceo last week certainly helped although some immediately pointed out the company can't be it takeover talks if he bought in the open market. if they don't come up with a strategy it's hard to see how the stock can be considered investable, which was i was so glad we got a chance do speak to anthony noto, in order to get a sense of his vision for the company's future. take a look. anthony, i always felt that when you were on wall street, you

were one of the best guys in trying to figure out what a company's worth, what's the runway. the present value. what is twitter really worth given the opportunities versus the $11 billion market cap? >> what i'd say is i'm in the business now of helping run the company, and we're going to let wall street decide what the company is worth. >> wall street has spoken. they don't think you have the mojo. >> i think we have to prove that we can not only draw the audience, which we're doing, our third quarter of accelerating growth in a row and now we have to marry that with great monetization growth. >> what side say is there are f they're global and they're in every language. that content appeals to everyone in the world and we should make sure the product is easy enough to use so everyone can use it and benefit from it the same way you and i benefit from it. >> maybe the whole narrative is wrong, anthony. you're a storyteller. you know that's important. maybe the reason why a salesforce is willing to pay

$29, which is sub taxly above where it is now, is because it really is a great treasure trove that machine learn cog apply to. why did the board turn down a $29 bid. >> what i'd say is we can't comment on anything specifically but the board understands his fiduciary duty. >> but a home run is a home run. why go for a single? >> ultimately the board has to decide what's the best way to maximize shareholder value. >> we understand david faber talks about why disney wanted to be in. disney has espn. you get a fantastic combination. combinations can be great too. it doesn't necessarily have to be a $29, $30 bid. >> we partner with these companies and create great value by partnering with them. our live product is a product that reaches a younger audience, a global audience, an audience that's on mobile. last year in the fourth quarter we had 600 hours of live programming. that's reached an audience that was 55% of which was less than

25 years old. so our relationship with the nfl and other of the big media companies is really helping them reach an audience. we think we can really help them and we're focused on doing that. >> let's talk about the nfl. you used to work for the nfl. the deal you crafted with the nfl, is that special versus tv? why would i watch it on twitter? yes, you know i do because we talk. why watch it on twitter versus the network? >> well, it's an entirely different experience. for ten years on twitter, we've had people talking about live events as they're unfolding. so now we're bringing the video to allow that conversation to happen in one place. 's aggregate the best tweets on twitter below that video in a timeline that's curated just for every individual. >> so pregame grammy. >> pregame grammy, we delivered an enormous audience, 5.1 million unique viewers. that was higher than the nfl games. why were's able to achieve that? we're six months into live video now. we're better at providing

discovery. we're better at marketing. >> what cosmetic company was called before this and saying we're going to deliver 5 million so you ought to pay us 5 million. ka-ching or no? >> redid very well in the fourth quarter. two video businesses packaged into one solution for advertisers. we exceeded our expectations for live video and the amplified business in the fourth quarter. we're really pleased. it's an economic model that makes sense for us. >> if you're jack dorsey, you're the ceo. you're pleased. you buy $7 million in the open market. why immediately are there some people that say there's a sign of confidence, which i said on air, and other people just say, well, there goes the takeover. so therefore it was a negative that i bought the stock. >> what i would say is no one cares about twitter more than jack dorsey. twitter the service, twitter the company, the twitter employees and the shareholders of course. jack gave back $125 million a year ago and bought $7 million

again. he's just showing his passion and his confidence in the company, and i wouldn't see into it any more than that. >> okay. so deutsche bank downgrades, said daily averagizer growth accelerated but unable to -- this comes despite president trump's average of seven tweets per day last month. undeniable. deutsche bank is undeniable. >> what i would say is we've seen great progress in our audience growth. many internet companies back to the mid-90s that once they saw a decline or a flattening of their audience growth, it led do a very bad outcome. we were fortunate in that we change whad we were focused on. we went to the basics in terms of product development and testing and were able to accelerate our growth and audience for the third consecutive quarter. most recently, 11% growth. we think we have a much stronger message to advertisers now. we're accelerating growth in audience. we have double-digit growth in inventory and prices are down 60%. we just need to get the better r.i. reflected. >> i look at it if you have a

bifurcated mod and say, here's basic cable and you get those advertisers. now, here's premium. here's hbo. the hbo is you get the president's feed. you get all your sports. you get the grammys, and you got to pay $3 a month. would anyone -- given that number, that progression, do you think anyone would stop paying $3 a month? >> i think we have a lot of optionality optionality. the most important thing is to make twitter the best place to see what's happening in the world and what's being statalke about. >> but is the best place to advertise? the inheernt nature of a tweet requires immense focus. it is not necessarily like search where you can actually -- it's a terrific medium to go against. it's not like facebook where it's kind of per rusele. it is immediate and the ads break up my train of thought. >> it's a phenomenal ad platform. we are basically taking organic activity and providing an advertiser the ability to turn that into a promoted tweet so it can reach more people than it would organically.

those types of activities on twitter have proven very valuable. >> would it be as valuable as say snap, and do you think the snap ipo where they're talking twice your valuation, that makes sense to you? >> what i'd say is we're focused on what twitter can do. evan evan's a friend. we're rooting for him. we want all the companies in our industry to on strong and successf successful. >> anthony noto, coo of twitter. >> thank you so much. good to talk to you. >> announcer: coming up, it was one of the hottest ipos last year. so what is twilio doing to make 2017 the year where great expectations meet big profits? cramer talks tech with the ceo. >> for our model to get all the developers in the world onto twilio and bring us into the companies they work for when they need to solve communications problems. >> when "mad money" returns.

♪ okay. i was a skeptic about driverless cars, at least until yesterday when i rode in one. i thought they were a pipe dream, something that wouldn't be viable until the distant future. turns out i was wrong. and the future is now to quote the late, great football coach george allen. sure, i don't know when you'll actually be able to buy one. but yesterday i came away from a drive in a waymo, the vehicle alphabet is building, thinking that i should be far more skeptical about human drivers and far more enthusiastic about cars with machine-made eyes and ears because they can be trusted not to drink, not to text, and not to tire to name three causes of so many fatalities both here and worldwide. okay. my drive was a short one. always chaperoned by someone in the driver's seat. that calmed me as we left the parking lot for the streets around the town where weymo

calls home. within a few blocks, though, i recognized that we're just not as good as they are. they being the machines. i found myself thinking that i was being chauffeured by a hall of fame, triple-a driving instructor who is trying to get you to pass the road test to get your license. we inched up at stop signs to be sure no one was coming. we didn't floor it on a green light but waited a beat because most deaths are caused by red-light runners. we diligently obeyed the speed limit and avoided both bicyclists and other drivers who just might not be as skilled as our machine or had blind spots that we knew they might not be aware of. isn't that the ultimate in defensive driving? i wanted to see this self-driving machine with my own eyes because i keep hearing about machine learning, autonomous driving, artificial intelligence, you know all these tech buzzwords we've gotten this week that had pretty much lost their meaning until alphabet let me sit in one and go for a spin.

but then when you see the statistics for traffic fatalities in this country, up for a second straight year after a 50-year decline, largely because of texting while driving, you recognize the urgent need for vehicles that don't have human foibles. after all, roughly 40,000 people died from car accidents in this country last year. that's the highest level of fatalities na nearly a decade and almost all those crashes, 94%, were caused by human error. sure, it's terrific to be able to do something other than hug the steering wheel while you sit in traffic. it certainly beats straining to see at night. but the most important thing is the driverless cars save lives and if we can make them cheap enough, something i believe the brilliant people running alphabet's waymo will accomplish, perhaps with fiat chrysler, then they will forever alter the auto market in a positive way. right now i think we have to accept that a driverless car will be more like a plane on

autopilot where the pilot can disengage and run the car any time you want it to. but after what i saw yesterday, i can confidently say that the safety of these vehicles is so much greater than a humanly piloted car, you'd insist that your kid's first car be one of these and not a vehicle driven exclusively by them. look, teenagers simply haven't learned enough about driving defensively to hold a candle to a waymo and the trajectory of fatalities makes autonomous driving a virtual necessity. we just have to hope it becomes economic fast enough to prevent more deaths at hands of drivers who literally can't stop texting to save their lives. what does this mean for a company the size of alphabet? right now waymo is regarded as, at best, an afterthought. there are plenty of kinks that need to be worked out before these go mainstream. but after yesterday, i think autonomous vehicles represent a huge part of alphabet's future, not just search, especially given the 1.25 million people

killed each year worldwide from traffic accidents and the 20 million to 30 million americans alone with disabilities who can't drive, who would be able to with a waymo-powered car. maybe you just need more skeptics like me to get behind the wheel and do nothing to know exactly how large this market could be. and while they may not be ready to dislodge plain old-fashioned cars for now, by the next decade, it is so hard for me to believe that they won't be standard equipment for all the automakers. all right. let's take some calls. john in california, john. >> caller: booyah, jim. i saw you on the west coast. you know we love you in sacramento. so exciting to have you here out west. >> thank you. i love sacramento, the eeld days. how can i help? >> caller: as you know, i've had some berkshire b and i just bought a bunch more last month. i'm pretty happy about it. i don't think the oracle can can make a mistake. what do you think?

>> anyone can make a mistake. i think you're in good hands. let's go to matthew in michigan, matthew. >> caller: booyah, jim. >> booyah. >> caller: i'm a young investor and just starting out. i was wondering if under armour would be a good long-term play. >> okay. i'm glad you put it that way because short term i don't like any apparel maker, none whatsoever. longer term, i think kevin plank is able to full himself out of a bad abyss right now. all right. the future is now. the future is autonomous cars and it could be a huge part of alphabet's future. coming up on "mad money" tonight, my exclusive with cisco. i'm digging deep into the numbers driving the stock higher today. plus the company powering the communications between you and many of your favorite apps. i'll take you inside twilio. exciting stuff. but first i'm talking all your calls here from cnbc one market in a fast hire edition of the lightning round. so stay with cramer.

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>> announcer: your safety online is in question, and a secure link with the cloud is becoming a necessity. can cisco connect the globe and defend your data, or will it be blown away by coming

competition? is cisco starting to get credit for its phenomenal transformation? for ages we've known it as a tient, but in recent years it's been transitioning from a hardware play into more of a software company, embracing new end markets like signer security, internet of things, wi-fi, all sorts of stuff we didn't used to associate with it. last night they reported a quarter that confused many people. while cisco delivered a top and bottom line beat, its sales were down year-over-year, and the stock sold off in after hours trading, fretting about stagnating growth. that's all misperception. cisco is not just a networking equipment play anymore. if you looked at the company's deferred revenue, it was up 13%. deferred revenue from software subscriptions exploded higher up 51%. that tells me all the important transformation is going very well. i think people are finally getting their heads around the fact that this is a big change, which is why the stock snapped back from last night's declines, ultimately gaining 2%. also gave you a nice dividend

boost. don't take it from me. let's check in with chuck robbins, the ceo. welcome back to "mad money." >> thanks, jim. >> this is the quarter, chuck. i saw it from the buy in from 45 million shares. i saw it from the fact people are getting around the recurring revenue. and i think you're beginning the re-rating of cisco. how right am i? >>le with, i hope you're right. it feels that way certainly. i'll tell you what, there's sort of three key takeaways from the quarter, i think. number one, the 51% growth you mentioned says that, you know, when it hit $4 billion, so the strategy is working, what we've been focused on. the second thing is when you look at what we talked about with our jasper platform and 40 million connected devices adding more than a million and a half per month. in fact, as the infrastructure gets more distributed over the next few years, the network is going to be more important because you've got to apply security in the network. the third thing i would say is this quarter you really saw two

different methods that we used for innovation. number one, you saw us launch spark board. you saw us launch nextgen firewall, new versions of at the time ration and data center. and then you saw us leverage our m&a capability. >> when this deal closes, what will the recurring revenue look like? what will the software versus hardware ratio look like, and what will the -- the fellow running it used to be from adobe who engineered the software transformation that a lot of people got in on early on. >> he's an impressive guy. a little bit about app d, first of all, they were growing twice as fast as their nearest competitor when we acquired them. they have a great enterprise solution. they've only penetrated 275 of the top -- of the fortune 2,000, and they've effectively never built and taken advantage of a partner ecosystem play we can

deliver for them. they're going to bring another point roughly of recurring to us. 75% of their revenue is recurring today. so it fits very nicely not only into our strategy to bring relevance at the application layer and in the business layer, but it also fits nicely in this business model transition we're talking about. >> i want to go back to a word you snuck in that i think defines the new cisco. it's got an ecosystem. it really didn't, chuck. you've given it an ecosystem. >> we've had a partner resale ecosystem but if you look at what's happening now, whether you look at iot or security or the emerging enterprise architecture from the infrastructure all the way to the application, customers are looking at architectures. and we are opening up every element of our portfolio so that you can actually program to it, write to it, extract analytics from it. so you do create the opportunity for platforms, and then the ecosystem to take advantage of it on top. so absolutely. >> now, in the same time, you've

got an amazing amount of cash, 71 billion. gigantic amount overseas. if we do get this repatriation, you're probably the company that stands on a percentage basis to benefit the most, maybe other than apple. >> we're one of the top five holders of offshore cash. you know, our strategy from a capital perspective won't change, right? we'll still focus on strategic investments and then committed to capital return to our shareholders, which we have been for some number of years. >> i just keep hearing these things and i keep think 13 times earnings and why that is, is because the transformation is a little bit difficult on the surface. but underneath you made it very clear in this conference call. you even at one point said it will just keep, keep going up. i just think that it's time, right? >> if you look at 31% of our revenue was from recurring balances this quarter. >> right. >> and if you go back six quarters ago when i started, it was 26.

it took me four quarters to move it two points. >> this is a giant company. >> and then the last two quarters, we moved it three more. and the product side was the same. first at 6% of product revenue came from recurring. it took four quarters to move it to 7. then in two quarters we moved it to ten. i think that says, number one, the company is behind it. number two, we had to evolve our offer structures to support it. >> you'how about on immigration? where do you stand there because there may not be enough smart people that our public schools produce. >> i don't think it's just cisco. every industry in the world, technology is becoming more relevant, and intelligent is becoming core to every strategy. first of all, we need to increase the amount of stem education that's occurring in this country. we need to did a better job of educating our students in technology because every job is going to be a technology job. we also believe that when we

educate people from outside the united states and we give them the great education, we should want them working for great institutions here. >> right, not go back to their country. >> we think there's balance, and i actually think that the current administration understands that. >> you had a good talk with trump yet? >> i think they do agree that we need -- i mean the smartest people we want working in our companies. >> right. >> why wouldn't we? >> well, i just do know -- i mean what are the prospects really? we've had so much controversy now. i have to ask you because i was hoping fast track repatriation. are you thinking maybe 2018 now because there's so much craziness going on? >> i'm still optimistic it will occur this year. i think if you look at the different tax plans, the one consistent theme throughout is repatriation. >> right. >> and i think there's variations. there's a lot of detail to be worked out, but i actually believe that the house, the senate, and the administration will come together, compromise on things. i think they realize how important it is for not only the

u.s. economy but frankly if the u.s. economy picks up steam it's good for the global economy. >> you said you feel good from a macro standpoint for the u.s. but that was the only area you felt good about. what could happen if things go better overseas? >> europe has got a lot of political dynamics and businesses don't like to invest in uncertainty. i think the thing that's happening in the u.s. is people are pretty confident that there are going to be, you know -- it's a good business environment right now. >> there was a major change. look, the last call you were upset, okay? you were. you were not happy with how you did. something happened in the last 90 days. i mean i have to believe it was either washington or maybe the logjam, but this was a different chuck on this call. >> well, we had -- i think the fundamental issue is that last call we had two big issues. we talked about service provider, and we talked about emerging countries. and emerging countries continue

to be a challenge. we see strength in mexico, strength in india. then we have challenges, although, you know, even russia and brazil are beginning to show a little bit of positive movement. but overall, i think the general beleif is there's more optimism in the u.s. economy. again, when the u.s. economy is positive, it's good for the world. >> i thought it was a great quarter, and i think the 20s are behind you and the 40s do beckon. that's chuck robbins, ceo of cisco. this was a breakout quarter, people. "mad money" is back after the break. , this ct egageunding m considerme eqinof ct, a frndhought i ould fir looo a vertga li the differce can yoexplain su, wellwh you take o aome?

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>> announcer: lightning round is sponsored by td ameritrade. it is time! it is time for the lightning round on cramer's "mad money." 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." we'll go to capil in chicago, capil. >> caller: booyah, jim. i shorted the stock at 53. what do you think i should do? >> they report next week, and

the last few times they reported actually the stock did go down. maybe that's your best chance. remember, they can refinance the balance sheet pretty soon, so be careful there. wallace in colorado, wallace. >> caller: hey, jim. you know what, you are the modern-day moses leading your flock to the promised land. god bless you. >> holy cow, man. thank you. that's high honors. >> caller: it is. >> what's up? >> caller: question about rite aid. do they have to go back to their shareholders to get approval? >> no. they really did kind of -- i guess they were just so thrilled to get anything. i wasn't too happy with them. my charitable trust owns walgreens. we sold some today. why? because we're still not sure whether walgreens is going to get approval, so i would be careful. bobby in virginia, bobby. >> caller: cramer, second-time caller, longtime listener. pot, potash. >> i like the ag complex. i preg agco, and then i like

mosaic and then yours. bobby in maryland, bobby. >> caller: booyah, cramer. >> booyah. >> caller: micron technologies. >> listen and listen good. last night on the cisco call, they talked about there's tight demand for drams. micron is too cheap. it should be bought here. i'm pounding the table. going to craig in georgia, craig. >> caller: mr. cramer, i just want to thank you for all that you do. augusta, georgia, gives you a big shout out. my stock is abx. >> i think the gold stocks are find. my favorite is randgold. then i like the gld. then i would go to the abx. not my favorite of the group, but i understand. john in my old home state of pennsylvania, john. >> caller: we don't say booyah where i'm from. we say, hey, how you doin'. my stock is principle financial

group. i bought it back in -- >> you got a winner. what can i say? this is a group that's doing well. it could be amer i prize. they are in the right place at the right time with this yield curve. al in pennsylvania, al. al? al? uh-oh. maybe we go for another caller. maybe we go for oleg in new jersey, oleg. >> caller: hey, jim. how are you? how are you doing? >> i am good. >> caller: should i buy anheuser-busch, ticker bud, on its dip. >> constellation brands, koro no, modelo. we also get the casa novo which i'm going to have if i ever finish this show. that's my suggestion. let's go to cindy in florida, cindy. >> caller: hey, jim. a boca booyah. >> a boca booyah. can't beat that. what's going on? >> caller: my stock is shell

midstream partners. >> i met them when they rang the bell. not only that but they were really nice people. all that said, i prefer magellan midstream, mmp. but the shell guys were dynamite, and i welcome them to the show. how about robert in alabama, robert. >> caller: booyah. roll tide to you, jim. >> roll tide. exact amunn doe. what's up? >> caller: i was wondering your thoughts on the geo group. >>s that had such a big group. a little too aggressive in terms of the move they've had. and that, ladies and gentlemen, is the conclusion of the lightning round! [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. at's with the g-d rse? m crazressed tryg to re out thicolex treso bht in ma isn' r wren?, u coulget sup.

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>> announcer: it powers the communication behind the app economy. can this silicon valley enterprise connect you to the companies you need while keeping your data secure? let's talk twilio. here's a phenomenal software company that helps app developers create and manage reliable communications processes via the cloud. in plain english, their platform is used by pretty much any app that sends you text messages. now it's been a wild trader. i think it's finally settled down to a level that's very attractive. let's take a closer look with jeff lawson, to get a better sense of how his company is doing and where it's headed.

welcome back to "mad money." i got to tell you it's been, when i say a while, there's been a roller coaster, but quoting from a j and p piece of research after your quarter that just struck me as unlike most companies. it said their biggest problem is how to manage the sea of inbound leads. how can i drive the craziness of the stock which the fact that's about as strong as demand you can get. >> i can speak to the company. the company, we are really focused on developers first. our model is to get all the developers in the world onto twilio and then bring us into the companies they work for when they need to solve communications problems. so it's a really sort of high velocity almost consumer-like funnel of getting developers to discover twilio, put it in their tool belt so one day at work when they have a problem they need to solve, they pull twilio out. >> why does travis say i sleep easier because i use twilio. >> they trust us with their communications. we allow drivers and riders to communicate with each other via the app in a secure and anonymous way so that if you

call the driver from inside the app, you're not giving the driver your personal phone number. >> now, if twitter didn't have twilio, what would twitter be? >> if twitter -- >> i'm sorry. if uber didn't have twilio, sorry. you would just be directly -- >> yeah. in fact when they first launched uber, that's what it was. you would call the driver. but there was always concerns, who am i giving my phone number to. >> how about what you're doing for nordstrom. there's a customer service company that's kind of been left behind because they haven't been able to do customer service. but you have allowed them to get more in touch with the customer. >> absolutely. what they wanted is for customers to be able to text with their associates and be able to talk to the salespeople to get product recommendations, find out when products come into stock. but again a similar thing, right? you don't want to give your phone number to any salesperson. nordstrom wants to make sure it's integrated with their crm so they can keep track of everything. so they use twilio to build this app to allow their salespeople from a mobile phone to be able to see their customers without

revealing the personal details of all of their customers, be able to text and have this great experience, having a personal one to one connection with their customers. >> now, what are you doing, is it similar with home depot? >> home depot has got a variety of use cases about connecting shoppers with information about what's going on in the store. you know, where the stuff is in the aisles and all that kind of stuff. >> i think that the company's got all these great customers but you happen to have an unbelievable customer in what's app. it's a fantastic customer. the short sellers tell me why do you like this company. don't you realize that it's apt to wake up -- and cut them out. this is a dangerous stock. are you that easy to cut out? >> well, we are deeply embedded in our customers' applications. so their code, they take and write at against our apis. but whatsapp is what we call a variable customer. the variable customers usage can

flux up and flux down. that's why we break that out and show it to the street so you can see that as different from the rest of our customer base. >> but the idea is that any customer at any given time can develop their own. i mean i'm sure it may not just be advantageous. it's probably cheaper to stay with you. >> all of our customers get the benefit of the rest of our customer base and the scale that they all bring. so when twilio gets better because we're investing in more a.pis, more security, as well as the scale of our super network, the number of interconnections that we have around the world. hundreds of interconnections and a routing layer that gets better every day with the feedback we get from our entire customer base. all of our customers benefit from that. that's why going with twilio makes a lot of sense and customers like salesforce are customers of ours. >> before i let you go, you might have a question for me. >> i do. developers are doing amazing things with twilio, but it's

actually easy to write code and do amazing things. >> you can't write code unless you went to stanford. >> do you want to learn to write code and build a twilio app. >> i would love to learn how to write code. i would love it. >> next time i'm here, why don't we do that on the air. >> absolutely. write code to me is like dot, dot, dash. so i would love to learn, and i thank you. i think your stock has finally settled down to be equal to the excitement and, i think, the great revenue trajectory. that's jeff lawson. do your homework. understand, though, that many of the things that you use are powered by their communications. stick with cramer. ngineers u ater robots,s,

sohecan keep watch ove operations belowhe sea, ngineers u ater robots,s, enrom sand ft abov no, i pickedheng the inrance company."you pkedour sohecan keep watch ove opercasaty islowhe sea, never d.and alwaysorking t . ew car rcent 'lplacllvaluour

this is a major what we call re-rating of cisco. it is going from a plain old 12 times earnings technology company to i think one that sells at 18 times earnings, and therefore will be substantially higher 18 months from now. 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, and i will see you tomorrow! are ey fhtinhe?

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