>> complacent investors, you'd better check yourself. do whatever. >> it looks like great trade. we'll see you on have a fantastic long holiday weekend. "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 our last day on the west coast for investor in america, defining the future. 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. so call me at 1-800-743-cnbc or tweet me @jimcramer.

we're still in rarefied air at these levels with the market well above where it was right after the election, and yet i keep hearing about the day of reckoning that's coming. i'm not sure about that day. however, i have to tell you when i look at what's happening with individual companies, not the overall market, i see a game plan next week that most likely will face its roughest test even as i doubt it will produce enough grift for the bears to get the kind of selloff they're praying for. what makes me so concerned about next week? retail. next week the retailers report, and i think we'll blanche when we see these numbers, especially given their stocks have had a bit of a run going into these quarters. let's start with two retailers we hear from on tuesday morning, home depot and macy's. their stocks have been on different trajectories. home depot is ameteoroloong the retailers in the world but this stock has had a pattern. it runs hard into the quarter. then it reports fabulous results and yet its stock gets hammered

anyway. give that home depot's stock has galloped in the neighborhood of 20 points since the election, i bet this time will be no different. monster quarter and then blowoff action. beware. don't take the first bite. judging by its trading history, it could take a day or two for the stock to settle if that does play out as i said. macy's, i think the department store chain could once again report disappointing earnings and cut its outlook. that would have been fine two weeks ago but since then the darn thing has run up too, this time on rumors of a takeout. without a takeover, i think the stock goes lower and i'll bet we'll find out what's going on with all this chatter when they spell out things on the conference call. i don't know if walmart will act differently from those two when it reports. it's being charged by the two washingtons, seattle and d.c. as amazon's crushing them with low prices and free delivery, and the proposed border tax in congress would seriously disadvantage importers, meaning it could really torch walmart's gross margins above all other

companies frankly it would be the most hurt. all ki stay is its stock is fraught with these issues and trading 16 times earnings, it may not reflect all of these challenges. either way, i think tuesday morning will set the tone for the rest of the retailers. so keep track of what they say as it will stay relevant throughout the parade of brick and mortar road kill that weighs on us like an anvil the rest of the week. now, so many of you had asked during the lightning round and i read your stuff, tweets, whatever, give me a legitimate marijuana investment play away from g.w. pharma. right now, though, i can't. there's really no play on what's become a tremendous growth industry as elections in one state after another have legalized pot although not at the federal level. but you know what? we may finally get an oblique play on this industry because scott's miracle grow holds an analyst meeting on tuesday, and i hope the company hints that it might one day want to spin off its hawthorn hydrouponic division. if you've been to states with

marijuana is legal, you know that residents like to grow it. they grow it all year. that means using hydrouponics. scott owns this market entirely. if they spend any time discussing the momentum of its hydroponics business, which is code for pot, then i bet its stock is off the races, maybe at par, which is wall street gibberish for 100. wednesday we hear from jack dorsey, the ceo of twitter, except he's not going to be speaking about twitter. he's speaking about square, the payments business that i think is doing pretty well. i have rarely if ever seen a situation like this, people, where everyone i asked, and of course i asked out here in san francisco says that jack dorsey should pick one company or another to run. we sat down with anthony noto, the coo of twitter yesterday, and he went over and over all the opportunities they had for his company. i found myself pondering whether some of these big money making opportunities aren't be delivering fast enough because the ceo only has so many hours

in a day and he's splitting it 50/50. then you got to think, are both companies being short changed? maybe we should ask board members. maybe the boards don't know. you can catch more of my interview with noto later on in the tv show. now, after the close wednesday, elon musk speaks about tesla's quarter. these execs marvel about how the media just doesn't give musk his due. the problem i think is that the market does give tesla stock its due considering how non-traditional its earnings reports are. we want to hear how this solar city acquisition is going and how many model 3s can be produced this year and next. we also want any knowledge of musk's relationship with president trump because it does seem that despite a belief that his anti-fossil fuel bent and alliance of government tax credits could put him in bad stead with trump, right? his build america mentality makes him the president's unlikely hero.

thursday we're back on dreaded retail watch where we get numbers from kohl's, where he got these socks, gap stores and nordstrom where my wife loves to shop. we know these stocks bounced the last time they reported because they've been pummeled repeatedly ahead of their quarters. stay tuned for that same prospect. also on thursday morning i'm going to be paying close attention to a stock that everybody has thrown away this week, chesapeake energy. it's been too warm this winter to blow away the numbers. i think we're going into an era where there will be a step up in demand for the fuel. when that happens, you'll want to own the stock of chesapeake. so perhaps your game plan here should be to buy the stock after it reports and wall street adjusts its numbers, means cuts them. chesapeake is a huge value play here and it's also a potential for a very hot summer. finally on friday, we get numbers from the last two retailers to report, thank heavens, foot locker and jcpenney.

i expect the former to be good and the latter to be problematic. foot locker has been a beneficiary of the sneaker wars, and its strength has made it an outlier within the decemberlatidecember ohlation of the shopping mall. what penny's needs is more customers and i don't think they're going to get them. we've had a monster run and i still think much of it depends on strong earnings. next week, however, has the weakest lineup of earnings season, the retailers and they could put downward pressure on the entire market even as the real blame lies not with these companies but with the washingtons, both seattle and d.c. let's go to michelle in oklahoma, michelle. >> caller: how are you, jim? >> couldn't be better. just warming up here, michelle. how about you? >> caller: it's great here. we have a beautiful day today. jim, i inherited a nice portfolio of steady growth, and i was wanting to add a faster growth component from the tech

sector involving internet of things and driverless cars. and i was looking at st micro electronics, stm. >> our viewers are so smart. michelle, that is just a -- that's what you want, i bless that 100%. that's a great idea. you know what? we should go to barb in iowa, barb. >> caller: hi, jim. thanks for taking my call. this is barb from sunny central iowa. setting records here as far as the warmth, but my question is about a company i question is it so hot or not, and that's the kroger company. my husband has a sizeable position in the company, and the dow is setting all-time records, and i wondered why kroger is really losing value. >> barb, here's the problem. kroger -- everybody is going against everybody. you got the walmart, target, kroger. they're all coalescing to hit each other, and then amazon wants in. kroger is the best in show, but

you know what? sometimes the show, not worth bingeing on. as we wrap up our invest in america series, i'm concerned with next week. i got to tell you i think it's got the weakest lineup of all the earnings and might sbut some downward pressure on the market. plenty to come on our final "mad money." i wish i could be here for the best of the year, but i can't, from san francisco. including a newcomer to the nearly $10 billion u.s. cosmetics market. find out where e.l.f. beauty plays in the selfie generation. plus from phishing to ransomware, the company trying to protect your data, i'm going to be talking with prove point. and we're going global. my state of the worldwide economy from here at cnbc one market. 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.

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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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>> announcer: the secret's out on the threat of hacking. proofpoint works to defend your in box, data, and social interaction. can it defend itself in a fight for clients? we know that cybersecurity is one of the great secular growth themes of our time, and after falling into a rut, these stocks have gained momentum as they should. take proofpoint, the next generation security and compliance company with a cloud-based platform that helps protect its clients against advanced cyber attacks via e-mail, social media, mobile apps. late last month, proofpoint reported strong results, stock sold off on the news. since then, though, it's come roaring back and i feel it could be a buy into any weakness if you ever get any. let's check in with gary steele, the ceo, to find out more about his company and what it's up to. mr. steele, welcome back to "mad money." >> thank you so much. >> when i read your stuff, i get scared. let's start with a speech you gave this week.

you say not to make a political statement, but in the last six months, we saw the russians extremely active in threat landscape. the obama administration had a hands off agreement with the chinese not have a tax against the u.s. based companies. that has stopped. >> we've just seen a significant amount of state actors and a lot of activity as of late. and as we enter '17, we think the threat landscape is going to be worse, not better. everybody knows and everybody is working on this. >> who else other than you has got any sort of protection? >> i think today companies are really working hard on the security posture and companies are doing a pretty good job. but there's still a long ways to go. >> just since i've seen you last, you just announced an industry first unified social mobile web and e-mail fraud. that's how they get to us. that's how i know they get to me. >> that's the thing that has been a key growth driver for us is bad actors know that the way to get into companies is not to target the infrastructure anymo anymore. it's to target the individual who is always susceptible to

clicking on a file which could be weaponized, has malware in it or clicking on a link that takes you to a malicious website. so because of that, companies recognize today they need better protection in that area. that's what's been driving our growth. >> one of the things i saw, you had summer olympic figures. share them. it's scary. >> oh, yeah. what we've seen over that period of time is just bad act overs preying on these big events and targeting people over not only e-mail but also over social media because people are susceptible. >> super mario. >> every way you can get to an individual whether it be e-mail, social, or even mobile apps, it is another way to get into a company's network. >> what you've been able to do successfully and you'll get in because of e-mail, because everyone knows you're the best at it. then you've got a suite of products that everyone seems to like once you're in. >> that's right. we have some very exciting results as it relates to orability to go back to our base, sell more product, help them better defend themselves against this broad range of

threats. we're working hard on behalf of our customers day. >> there's these actual ransomwares that you know -- i mean they're all strange to us, but you just know them? >> yeah, so what's happening today is over the course of '16, 70% of malware delivered was ransomware. so ransomware is everywhere, and every two to three days, a new variant, a new kind of ransomware comes out. lock ki is just one kind. why do bad actors keep creating new kinds? well, because it gets in. >> it doesn't cost much either? >> it costs very little. you click on it. your drive is encrypted and you've got to pay a fee to get it back. >> you spoke to a cfo of a large company this week. 90% of the issues we have come from e-mail? >> yeah. so the challenge and the noise for people that haven't got adequate protection is that's where the risks and threats are coming in. they're coming in through e-mail because a bad actor can target you. they can figure out what you're interested in, what's going to

be compelling to click on. so that's one of the reasons, again, that we've seen the growth that we have. >> and that's why you have 40% growth, because the bad guys just don't stop. >> that's right. and there's another big trend that we're benefiting from, which is the cloud. >> right. >> so as more organizations go to the cloud, they have to have cloud-based protection. so that is just a natural secular trend for us that we're going to see benefit from for many years to come. >> the cybersecurity executive order? >> i think it's good. you know, it's still in draft form. we'll likely see it in the next few weeks. i think it creates more visibility as it relates to cybersecurity. i think increasing visibility and vigilance around cybersecurity is a good thing. >> one last thing. our people are watching. anything that you can tell them right now not to click on. >> just because you get an e-mail from somebody, just make sure you really know who it's coming from because that's probably the place where people are getting targeted today. >> you've got a very strong business because the bad guys

don't quit, and you've got the stuff that stops them. that's gary steele, the ceo of proofpoint, you know we like this stock very much. "mad money" is back after the break. >> announcer: coming up, he's gone from google to softbank, and he's earned a world of knowledge in his travels. what does he see that can make you money in tech? >> on the one hand you're seeing nationalization. on the other you're seeing globalization. it's happening in the tech space like there's no tomorrow. >> jim is joined by a renaissance man when "mad money" returns.

♪ how is it that the rest of the world's growth has gotten so much better yet people still think nothing's changed and it's the same old creaky slow global economy? first i believe that many countries have no desire to admit that things are better because that wouldn't jibe with the easy money policies of their

central banks, policies that keep their currencies low and make their exporters more competitive, particularly here in the united states. they want to use the so called greatness of globalization to steal market share because they think they can get away with it. to be fair, that wasn't the original plan. these foreign central banks initially cut interest rates in order to bolster their fragile economies, exactly like they're supposed to. this policy just had the added advantage of helping their companies poach business from american companies. but a funny thing happened to easy money. it did what it was meant to. it ignited the economies in these home market countries making their below market rates look like a big fat joke. take europe. germany, which ha been stagnant is starting to see a big pickup in growth. when you grow your population, that translates directly into economic growth. while the germanien government is notoriously tight fisted, it's feeding refugees and trying to find them work which expands

the economy. we're seeing a slight turn in italy, not enough yet. but they're finally working out the solvency issues with their banks and that could get the surprisingly mostly cash economy moving a bit. the biggest surprise is how strong britain is. i know that there could come a day when brexit hurts, but right now the consumer is spending and construction remains strong. russia turned because oil came back up from its lows and the ruble is linked to oil. remember, we're not talking about robust growth here, just growth that's better than it was. how about asia? india's demonetization initiative has already started producing an economy that's generating more credit and could grow faster. the fact that visa's ceo told us this week that tens of thousands of people are applying for vee ca cards every day is pretty telling about india. china is tough. if we look at the baltic freight index, it's slipped pretty terribly. but if we listen to cummins and

caterpillar and boeing, we feel good about chainina's spending. we're even getting nascent signs of revival in japan confirmed by visa receipts. i know mexico seems like a failed state these days but most of the companies i deal with say business is much better year-over-year, in part because employment is very strong for many of the reasons president trump rails against. latin america away from venezuela which truly is a failed state is making a nice comeback with argentina and colombia leading the way. brazil is still an issue excluding agriculture, but i bet later this year we'll be thinking much more positively about that country. that's a lot 6 growth from a lot of places. it may be underrecognized, but it's indisputable unless you're a central banker who wants to keep his currency cheaper than it should be. stay with cramer. >> announcer: what's better than

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after breakfast, sue goes back to her room for some finishing touches, some makeup. >> be careful when it comes to lipstick. >> choose a shade that goes with your own coloring and then easy does it. >> announcer: ease does it? times have changed.

in the selfie society, health beauty has brought quality cosmetics to the masses. can the stock rise in the face of its established competitors? whenever i'm out here in san francisco, i'm constantly reminded that you don't have to be a traditional tech company in order to take advantage of technology. consider the case of e.l.f. beauty, the cosmetics company focused on making low-cost makeup for your eyes, lips, and face. hence the moniker, e.l.f. this company, which ipoed last september has become one of the fastest growing cosmetics companies in the country and i think a lot of that has to do with their embrace of technology. you see it got its beauty start add a pure e-commerce business. while you can now find their products in stores, the fact is they've totally mastered the web, mining online reviews and social media for useful feedback which then helps them design new products in a very fast fashion. now, the stock hasn't done much since it came public, but i think this is a compelling play

on the rise of the selfie generation. we got a chance to speak with the dharm and ceo of e.l.f. beauty earlier this week. take a look. >> it's an honor to have you on because what you've done is brought luxury to the masses. i want you to describe how it works for e.l.f. >> thank you for having me. our mission is to make luxurious beauty accessible for all women. the way we do that is we introduce high-quality cosmetics, prestigious-inspired, at extraordinary value. in account ffact, most of our i for $6 or left. >> how can you afford to do that? >> the way we work is everything we have goes into the quality of the products and the price. we don't hire celebrity endorsers. we don't put a lot of money on media. our whole brand was created online. so as an e-commerce business, our entire engagement model was direct to consumer, and what it allowed us to do was cut out a lot of the costs that people spent on celebrities and put it in the quality of the product.

and in turn what it allowed us to do is really attract one of the best consumers in this entire category. >> i think what's important for people to recognize is this is no longer a discretionary item. in the era of selfie and snap and instagram, right? >> no, absolutely. with the selfie generation, particularly our core consumer, we are twice as developed amongst millennials, overdeveloped amongst hispanics and african-americans, but most significantly we appeal to the makeup enthusiast. this is a woman where cosmetics is not a discretionary purchase. she loves everything about it, trying new products, so for her, this brand really resonates because it gives her what she wants, her ability to play with cosmetics and really enjoy and look great. >> i think one of the things that you have pioneered is the idea of the quick cycle. i want people to understand this because i think a lot of people don't understand that the time to market matters for cosmetics almost more than anything else. >> it does. it goes back to this core consumer.

if you think of a millennial, she doesn't warrant to wait. if she's interested in something, she wants it now. our ability to go from initial idea to selling in 20 weeks is really revolutionary relative to the long traditional kind of product cycles. >> at the same time you're in some very high-quality mass discounters, and you have plans to be in some more of them. >> no, absolutely. about 85% of our business right now are in leading national retailers. so target is the retailer we've been in the longest. we are also in walmart, cvs. the third quarter we started testing on ulta.com or selling on ulta.com, and all of that has gone well. wherever we go into distribution, we end up being the most productive. >> when i look at the fastest growing brands, i look at your 43%. may that is an extraordinarily fast growth rate versus everybody else. where can this stop? >> well, i mean our aspiration is to be a billion dollar brand and part of the reason where

that aspiration comes from is we have growth drivers in terms of every dimension of our business whether it's building a brand, expanding brand penetration, starting with the biggest priority is the retailers we're already in. we still have a long way to grow within target, within walmart, as well as international, our e-commerce business. we also have our own stores. >> you have a bunch in the new york area. >> we do. in new york and l.a., we have about 19 stores in total right now. >> is that just to find out what people want, or do you want to blow that out too? >> well, the role that e-commerce and our stores play, our direct business, is really to help us with our consumer engagement as well as to help validate products. so our associates have a great sense in terms of what's working, what's resonating with consumers, and we can then take that and expand distribution with national retailers. >> let's talk about validation. when i see your product, i remember how much money some of these -- the branded companies, including those endorsements, pay to make you think they're better.

what happens in head to head competition with e.l.f. >> i'll show you a great example. our whole mission is kind of bringing what we call first to mass innovation. so these often are ideas or items that you could only previously find in prestige. a great example is our face primers. for the guys in your audience, a face primer is much like painting your house. it's that first coat you put on and allows basically to smooth wrinkles. >> i'm familiar with that. believe me. >> good head to head is prior to that there was a prestige item that had a face primer. what we do in our face primer, we always try to go one up. we ended up putting in better packaging, better dispensing. having a better pump, you don't need that much to put on the formulations better. when we give women this, first blinded, elf wins. you see our price is $6 and the prestigious item is $36, e.l.f. wins even higher.

>> i think that e.l.f., the stock, wins because of all the work you've done. if think it's a brilliant model, and you've really proven e-commerce to mass is a great thing what you're doing for everybody in the country. he is the chairman and ceo of e.l.f. beauty. e.l.f. stands for? >> eyes, lips, face. >> there you go. stay with cramer.

♪ we come out here to san francisco at least twice a year because we want to give you a glimpse of what the future will look like. that means talking to the real experts. few people have more technology

expertise than nikesh arora. he went to work as the president and chief operating officer of softbank, the huge japanese concern that specializes in tech investments which of course has been in the news lately. not long after aurora took that job, he put his money where his mouth is. i mean holy cow. he bought soft bank stock with his own capital before leaving in a widely buzzed about move. he helped turn google into the dominant player in search from 2004 through 2014. i think you che can give us a rn the whole panoply of tech. that's why i'm thrilled to have nikesh arora here with us tonight. welcome to "mad money." >> thank you, jim. thank you for having me. >> before we get started, you have made a remarkable contribution to the companies and to the word. you've credited a lot of wealth, a lot of jobs. you put a lot of food on the table. i need to know right now about

immigration. would you still come to this country where you flipped burgers, where you worked as a security guard? you said there is opportunity. does it still exist for immigrants? >> nothing like a nice ice breaker, is there? i think, jim, on balance i would. i think this is a country where your dreams come true, and if you go around the world and you ask young people where they want to go, they still want to come to america. i think this is one of the most successful democracies in the world. this is where capitalism thrives. i think the country is bigger than any one person. i think the system, what we have going here, is way bigger than any one individual. if you disagree with that individual, there are mechanisms in place that allow you to disagree and be vocal about it. as you can see, people are being vocal. >> this is important because out here a lot this week i've heard about we're so anti-immigrant now, we're not going to get the talent. we're hurting ourselves. you're telling me a story that the opportunity is here, and just maybe focus on the opportunity, not think about

what a president even might say. >> that's the whole reason we have a balanced nation with all the systems and processes in place. this is not a banana republic. you can't just get up there and do whatever you want. there's checks and balances in place, and i think what this causes is it causes people to step up and pay attention. i don't think -- i know many of my friend who's have been involved in american politics that i've seen the last three months. i've been here 25 years. i couldn't get people excited about american politics. they're all busy focusing on their innovation, focusing on making money and they don't know what's going on in the country. i tell you what, everybody knows what's going on in the country. >> that's a good thing. >> it's a phenomenal thing. if you were starting a tech company and said how do we create engagement? guess what, you've got engagement. the question is what are you going to do about it. where the fun begins. >> are there companies capitalizing on the engagement. we talk about social media, the cloud, mobile. is this just something that is just great for democracy? >> i think there's two different topics. this is great for democracy.

this is how we run the country. this is how we make progress. i think on the monetization side, how people actually capitalize on this, i think depends on the policies that come out from the current administration. if there are going to be interesting policies, things that change, things that allow you to operate differently, yes, you'll find a way to monetize. if you think about it in the social media context, you had anthony noto up here yesterday, one of the largest users of twitter, people spend a lot of time watching. that's a whole different conversation compared to the bigger issue we have on going on in the country. >> let's talk about the companies. i know it might be more my yopic but we've got to go there. why? because you are the only person we've talked to all week that's got the real perspective. you made a lot of money, built companies. most importantly, you have no book to talk. you literally can be a free agent.

when i think about google, when i think about search, i mean, big, big billions. would you still go there? what do you think of the evolution? >> look, i think what's fascinating is that the technology trends of the last 10 or 15 years have allowed for certain things to happen. on one hand you're seeing nationalism. on the other hand, you're seeing global globalization, and it's happening in the tech space like there's no tomorrow. there's suddenly global leaders whose services are available in the most remote parts of the world because of the ubiquity of access. so google can be accessed anywhere in the world. facebook can be accessed anywhere in the world. it's impossible for a local competitor to play against these large plays around the world. so in that context, i think google is here to stay. if you think about it, the market that they monetize today on their search and advertising side is a $700 billion market. >> right. >> if you believe that, you know, more and more audience is shifting there over time except for cnbc of course, right, but

more and more audiences are shifting there. when that happens, their opportunities to continue to monetize the advertising sort of fly wheel increases. >> facebook, they can take it all, can't they? >> they can take a significant part of it. every time you believe you have a situation where you can have all of it, there's a little bit of do of disruption comes in. now, the new disruption is video. but everybody is all charged about video. facebook wants to get aggressive about video. google is about video. snapchat is about video. suddenly video is the new bastion of advertising that needs to be conquered. if think that's going to be an interesting place to see what happens there. >> could softbank have done it if you had stayed? >> i think their strategy is different from google. google is an operating company where they want to build great new products and scale them around the world. softbank, mr. sun is one of the most genius investors in the

world. his strategy is to support innovation by investing in engineers. he wants to do to tech what warren buffett does to -- >> okay. which is noble. buying fortress, is that part of it? >> you know, he's an interesting individual. i think his risk appetite hasn't changed in 39 years. i think that's fascinating. as we grow older, our risk appetite changes. we get a little -- sort of calm down, but this individual is phenomenal. he goes at things. >> you have a good relationship with him. >> love him to death. >> how about apple? where do we think apple is? >> i think what apple has achieved is phenomenal. there's very few turnaround stories in tech. i don't think we should call apple a turnaround story but you go how many companies in silicone valley have been through an up and a down and an up again. i think it's reinvented itself phenomenally well. they've created a blockbuster set of products in the world.

>> if you look at facebook, amazon, netflix, alphabet, apple, let's throw in snap for the moment. which of these next five years from now would you say to people, there's no such -- >> throw amazon in there. >> yet, the a. which of these, if you had to buy and hold, which would you do? >> i'd have to buy and hold amazon. >> you would? >> yeah. i mean if you think about it, three things i look for. one is what's the size of the market? the size of the market is huge, right? there's less than 10% of the world's commerce is happening online. >> right. they're not -- >> that number is going to go up from 10%. five years ago it was in the 1 or 2%. >> even though that's not the one bound by price to earnings multiple -- >> that's not the point. the market is huge. they're running away with it. like there's nobody even close. we had this whole conversation the other day, why do you want to get in the delivery business. well, if you say you're going to

take the e-commerce from 8% to 16%, you're going to double the amount of commerce done online, you'd have to deliver twice the number of packages. well, who is veinvest something who's going to take on the extra 100% capacity. i'd buy and hold amazon. >> you are i think the foremost tech investor of our time, and we just heard what we need to hear. thank you, nikesh arora. a true tech legend and a luminary. good man. thank you, sir. >> thank you.

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♪ can twitter find a way to snap out of its recent rut? here's a company that has transformed the way we communicate, revolutionized the news business and arguably changed the landscape of american politics forever given how successfully donald trump used the company's platform to

help get himself elected president. yet fundamentals continue to just confound us. they disappointed again last week. they had less than 1% revenue growth for heaven's sake. is this a company that maybe peaked too early or does it still have the ability to turn things around? last night i spoke with anthony noto, trying to puzzle through how he can get twitter to grow and prosper, and we spent so much time talking that we had to save the second part of that interview for tonight. so take a look. >> anthony, i know that we've got all these business things going. we've got twitter, and you got all that on your mind. when i saw you last, it was about westpoint. it was about the army, about leadership. you brought some terrific cadets. applications to this current business? >> yes, absolutely. it's interesting. we're doing live programming now, and i got a tweet from a soldier that's deployed overseas away from home, and he asked if we can get that nhl game which was live streaming on twitter into his geography where he's located. we're working to did that.

this product impacts the world in enormously different ways. it helps soldiers stay informed on what's happening in the world when they're deployed in far off lands. >> i know leadership matters a great deal to you. before you came in, i looked at glass door. i love those rankings. you used to be one of the highest ranking companies. now 72% would recommend it to a friend. 47% positive business outlook. if this is a regiment, and you've got to turn it around, what would you do? >> i would do exactly what jack and i are doing. we're defining exactly who twitter is and focused on being best at what's happening in the world and being talked about. then we're focused on four things to reinforce that. we're the fastest. no one breaks news better than us. we have the most comprehensive impression. we can personalize that to you because we know who you like based on your interests. last we have a discussion. every decision we make whether it's a content decision, a product decision, a channel distribution decision, a live content decision, has to reinforce one of those four things. if we do that, then we'll deliver on being the best of what's happening in the world,

and that will drive audience and revenue. >> maybe the general at the top is a general in the army. he's also a general in the air force. he's got two different jobs. the opportunity is so great. maybe it's time to just be the general of the army. >> what i'd say is jack is a core part of every decision we make. he's there 100% of the time for the critical decisions we make, and that's the most important thing. and we're making the right decisions. >> you mentions something about the soldier who is overseas. i've been thinking. the way i would use it if i ran twitter, i was in mexico recently. i was denied a credit card. they dint think it was mine. i want a feature that i would gladly pay $10 a month for direct message to my bank saying it is me so i wasn't rejected from renting the suvs for the day where my kids would have had a great time. what's the deal? why can't i pay for direct message to chase? >> so we provide that capability today. chase doesn't pay for it. >> but i'm the one who gets hurt, not chase.

>> as we build up the activity in the adoption, that creates the opportunity to drive revenue, but the experience itself has to be high quality service. we're providing customer service capabilities through d.m. just as you describe. >> if i go on yelp, i have to pay a fortune to promote by bar or inn. i only want to reach the people in my zip code because i need the street traffic. why don't you give me that opportunity? >> it is an opportunity for twitter to give you a narrower focus. >> i'd pay $100 a month. >> the great thing is we're focused on exactly that type of opportunity, giving you the most relevant information at the moment when it's most important to you. that could be location based. >> you played football with torn ligaments in both knees. you were an unbelievable athlete. i'm hearing things that require tremendous skill sets like that where you can play hurt, and yet i don't see it. like you just mentioned, yes, we're working on this. we're working on that. i mean you're a triple threat guy. why are we not working, and why

shouldn't we just be paying? >> we are moving as fast as we can, and we're prioritizing the things that are the biggest opportunities. everything that you mentioned are things that we think about, things that we'd like to do. it's just a question of when, not if. right now the most important thing for us is making sure the audience and our platform is growing and it's been accelerating for three quarters in a row. >> how much would it have accelerated more if you could clean up the abuse, get rid of the bullies, get rid of the things that if you saw in the army you would go ballistic? >> safety is a very high priority. we're focused on doing things in days and weeks, not months. we've already shipped a number of things this quarter. we're trying to actually take the responsibility for safety out of the hands of the user and put it in the hands of twitter. >> remember i asked for a concierge. i would pay money again. by the way, do you know i've given you like a dozen revenue streams that you have not been able to pick up on yet? where's my wallet. >> we want to give you that safety that you're looking for through technology. one of the recent things that we launched is using machine

learning to be able to take quality content and put it at the top and lower quality ton tent and put it at the bottom when there's replies to your tweets. >> how about a partnership? i have a million followers. i would love to have a partnership with twitter. you look out for me. i look out for you. i give you a percentage. you get a percentage. every wins. >> that's our business model. >> but it's not happening. >> we partner with -- >> you partner, but it's profitless. >> we profit with 250 content companies. we sell the advertising. they get a piece of that. we have over $2 billion of advertising revenue. the fastest company in digital space to reach that level of revenue in the shortest time period. right now we're focused on driving the audience and the revenue lag will catch up as we show advertisers the better roi we have and lower prices. it just takes a while to deliver against the real location. >> europe against facebook.

i mean in the end, you're dealing with companies that actually have more divisions than you, anthony. >> well, they have significantly more scale than us, and that's very clear. but we have an audience that's engaged, and we know what that audience is looking at every moment when they're on their platform. so we can deliver them great quality content. we also can deliver them very helpful advertising. the key to our advertising model is that we're replicating organic activity that happens on the platform already and delivers messages in the context of what someone is already consuming. >> i want to thank you so much for all of your time, for always answering the questions as you have for me for 20 years. anthony noto, coo of tweeter.

i want to thank the whole team out here in san francisco for welcoming us all week. it's been terrific. 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. have a happy president's day weekend. i'll see you tuesday. what on earth are they fighting here?

whatever it is... it's hunting. the great wall. rated pg-13. male announcer: the economy is going through tough times. many hard-working americans blame wealthy ceos, out of touch with what's going on in their own companies. but some bosses are willing to take extreme action to make their businesses better. each week, we follow the boss of a major corporation as they go undercover into their own company. - this is john. he's gonna be working with you today. announcer: this week, the ceo of america's largest family-owned theme park company poses as a new recruit. - oh, you're a rookie? - yes. - i am a rookie. - [laughs] - whoa. - okay, hold on. announcer: the boss will trade in his executive office and expense account for a beard, some boots, and a quacker. - [quacks] - no quacker, no ride.