nvidia is going down. >> we're raising the ceiling with that song happy belated birthday, tim. halliburton in the energy space. >> happy belated birthday. >> i'm miselsa lee, thanks for my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save 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. what can we learn from warren buffett? let's start with the obvious the greatest investor of our

time maybe the greatest who has ever lived. at least until we saw president trump's tweet about a decision on the iran deal and we gave up most of our gains. but look, if we get hit with a sell off caused by negotiations with iran, this is the pullback that makes buffet want to buy stock hand over fist buffet is an old fashion guy, he believes in progress and he believes in america. so when we hear him speak like in his fantastic interview this morning in the wake of the berkshire hathaway annual meeting, he extentends to be a reassuring voice by the way, if you missed becky's new documentary about

warren buffett, you can catch it right after the show tonight 7:00 eastern sure, he has made mistakes, but nobody is perfect. besides buffet has far more winners than losers. he knows that failure is a better teacher than success. now it is one thing to make a mistake that actually makes you money, but something else to miss out an investment if you are going to play a game of woulda, coulda, shoulda that you are going to talk about ones that you missed let's call that a high quality problem. buffet is a 94-year-old d doppelgänger charlie munger,

theycan talk about stocks they missed with a minimum regret and maximum praise for the companies created in question. amazon, and google now alphabet. that said, the hit dramatically outnumber the misses they nailed apple able to build up 5% position getting great prices buffet saw apple for what it is, the consume mate consumer product company. american express and coca cola are two of his longest positions and held on longer than most of you have been alive. once the largest owner of gi

gillet he sat on the board for 14 years why does the gillette connection matter it is the company that invests the razor blade business model sell the razor for a cheap price and make it up on the blades proctor gamble has made a fortune -- many of you go have switched to dollar shave forget proctor, the crucial thing is that buffet understands this business model than anyone else alive let's go back to apple he saw a bunch of his kids at one of his holdings, dairy queen, and they all had iphones. get enough phones out there and one day apple service revenue

stream will kick into overdrive just like razor blades today charlie munger admitted that when it comes to apple, they were wrong not to buy much more but buffet was critical of himself for not buying alphabet and amazon i think it is because they don't have iphones themselves. generational thing these services, amazon, apple and google worked well, it was really the smartphone. if you didn't have a smartphone, you were never going to understand the story line. when you plug into these services, you are plugging into a data center where the cloud resides. to a guy like buffet, amazon

looked like another retailer, the cloud companies are amazon, alphabet and microsoft in that case, it is the azure. a fourth gaining position, the ibm cloud. i think if buffet had realized how close ibm is to getting its cloud and cloud related divisions, he may have been more inclined it hold the stock rather than selling it like he did. well he said the same thing about ibm and its gigantic buyback. they like the fact that he liked that he kept owning more and more of the company as he bought back it was unrequieted

salesforce for customer relations, splunk. red hat, vm ware all authority short hand for their prowess. i think it is safe to say that buffet and munger don't know the cloud, and they don't know the cloud kings. one more reason why i think this move is still in the early movings. either a cloud surfacing slow up coupa, or newtannix to leave plenty of room for ibm

buyback. either would send the all important strategic -- and look much more attractive neither buffet nor munger used a smartphone, they failed to spot amazing opportunities. they went there themselves so i thought it was fair game, i would have been happy to praise their brilliance, but if you are going to admit that you made a mistake, it is fair for someone, might as well be me to explain why it happened. let's go to edward in alabama. >> caller: hey, jim, booyah from alabama. >> i love alabama, how can i help >> caller: i am a big fan. and i want to thank you for all you do for us. my stock is pru, prudential.

and it seems very unloved. closes lower on a good tape today. what's up? >> people think, well, wait a second, we got a rising interest rate environment 3.5% yield i agree with your analysis i think it is sweet home prudential abe in new york. >> caller: good evening, jim ruth steak house one year over a 40% increase in its stock price. is it time to take profit? >> in the end, it is not a billion dollar company it is a good company one of the better of the restaurants. i would hold on to ruth's. how about al in north carolina

>> caller: booyah. long time listener with my brother joe and myself i want to talk to you about home depot if i could long time holder of home depot it is down about 3% year-to-date and trading sideways since february with the turbulence in the market from the past three months, and home depot coming into the christmas time season is this a buy? >> buy it and put it away. home depot is crushing it. i mean, no the ththe culture th great and i just think it is a fantastic company and i want you to know it judy in new jersey. >> caller: hi, jim, i'm calling

you because i have a question about ca i have been a significant stockholder since the early '90s and seen it go from the '60s to where it is currently. all of the reports i have read are most often favorably is there any reason this stock price can get out of its way. >> candidly, i have not looked at it for years. and we will look at the quarter and then we will come back judy, i am going to come back with more. the big guys missed it they missed the explosion of google and amazon. i think they didn't realize how big the cloud will be. estee lauder can help you look like a million bucks, but is it more than skin deep. i will see if this wall street stunner goes higher.

spotify, struck the wrong note with wall street the market is listening to the wrong track. can waiting petroleum have more in the tank? i have an exclusive with an oil executive. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. once there was an organism so small no one thought much of it at all.

people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here.

what do we want from a consumer packaged goods company anyway should we be content with a group that is struggling with low single revenue growth? maybe the environment is too difficult for them to deliver solid top and bottom line numbers like we got used to. at least that is what i was

thinking until estee lauder reported last week bizarrely, this stock is getting slammed like it is like any other consumer packaged goods play estee lauder is high fab briz 0io -- freda is one of the few high level american executive goods executives who is foreign born. so maybe it shouldn't have been all that surprising whenneste lauder put on a clinic freda didn't for the far markets

particularly asia would be critical here. now freda spends a considerable portion of his time in asia trying to figure out what they really want. when he thinks he has the right ga combination, he presented them on t moore oh, and he tests every new formula again and again to make sure it is right of course despite the towering gains versus competitors, not everything was a gain. on the other hand, skin care, a category that have been in the

doldrums took off. plus the united states the closing of the bon ton left a whole in the sales and then an embarrassing moment freda had to disclose some of the claims estee lauder has been making about its products were inaccurate how long it could last on your face well, something has been awry at the company and not the end of the world. the idea that there was a group of rogue employees who was basically lying to the customers struck a down beat cord and in an era where smartphone cameras keep getting more and more sophisticated, paying for makeup has become a necessity when its stock is getting clobbered, i think it was necessary to circle back to you right now and recommend this stock into weakness.

estee lauder is an innovator and a share taker. best of breed in its category. i would be a buyer, not a seller much more ahead. my take on spotify is wall street looking at the report all wrong i am going to sit down with the ceo waiting pete i am going it sit down with the head of bank america, the digital banking person to get an inside look at one of the largest banks thinks about global business and where it is headed stick with cramer. i'm not a bigwig.

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♪ the market makes a lot of snap judgments during earning season so many information coming from a lot of companies at once when you make snap judgments, you make mistakes. and whenever the market makes a particularly egregious error, i like to go back and set the

record straight. consider the case of spotify, the online streaming service that has revolutioned the streaming business if you only judge the results based on the action of the stock, you would have thought these numbers are horrific the darn thing lost $15 and nearly 10% of its value. how bad was the quarter? it must have been terrible what did spotify do to freak out wall street? upon further review, this company hit all of its targets it set out for when it started trading on the new york stock he can change think of its anti -- how do you make sense of this hideous decline? firstof all, as i pointed out when i recommended spotify right

after it listed on aprilapril 5, this the story ipo process is about making money. management goes out on the road trying to sell potential investors on the enterprise. spotify did none of this no promotional road show no ceo ringing the opening back at the new york stock exchange the company didn't create new shares to sell to the public wasn't trying to sell you anything exception streaming service. they made it possible for their existing shareholders to ring the register by selling their stock on the open market, it was the nonpromotional thing i have seen

in years, maybe decades. ceo daniel ek is a straight shooter. i like their style, and of course i like the service. as we saw last week, spotify's style is not for everybody did spotify come out of the gate and disappoint with its first quarter? not quite. the thing is while a lot of investors acted surprised and disappointed with these numbers, spotify did its best to tell us what to expect about a month before reporting for example, right before the listing spotify said it was aiming for 168 million, active users. total premium subscribers matched. up 45% year-over-year and it keeps going.

predicted generating one. billion euros the gross margin, predicted 23 to 24%, they predicted 24.9. earnings, 41 million loss. over and over again, spotify gave us results that were basically at the end of the forecast you may have seen spotify secondary guidance were weaker as for the four-year guidance, spotify maintained those numbers. why were so many shareholders disappointed to borrow a line from "cool hand luke," failure to communicate. i think there was a cohort of

short-term investors who got used to these patterns expected management to sandbag them with low numbers. spotify refused to play this game the numbers they gave us right before the listing were real, not low ball figures management meant to hit those targets and that is what they did. a lot of people crowded into the stock basically with the idea that it would be like every fast pace name. i couldn't believe how unfair this was and when they merely got an inline quarter, these guys dumped the stock inline first yauquarter would ba huge disappointment, but spotted f -- spotify is not normal.

the analysts were actually telling. spotify pulled back from 170 to 150, what do we do with it i like it even more. one of the few services people would pay for without questioning. and why wouldn't they be confident? 95 million free customers and that is how 65% of paid users started out. a pipeline of potentially paying subscribers. now we know what to expect run by honest straightforward executives i have ever seen. i am not worried about them missing their numbers going forward. and because it is a european company, they have been getting crushed by the weak dollar if the dollar can give us a sustained rebound, and looks

like it is going to, it would be a major rebound. as for the sellers who dumped spotify last week, i say good r r riddance they hit those numbers and it just got punished because a bunch of investors let their inexpectations get out of control. myles in my whhome state of new jersey. >> caller: hey, jim, atlanta city booyah. question is about twitter taking a beating because of the cambridge analytica scandal. possibility to increase revenue,

facebook took a slap on the wrist from congress, when do the analyst realize that potential twitter and bring it to all time highs? >> i think you know the twitter story well i think the twitter story is a buy. i have been liking it ever since when i suggested that you go long twitter and maybe leave snap i reiterate leave snap, although they have a new ceo that sounds like he has game ryan in new york. >> caller: booyah, jim i started investing in the market a couple of weeks ago but should i be doubling down on square >> no. we like to buy weakness and not strength i like the company but i think it has a lot of hot money in it and we see what happens when you

have hot money in it, you get hurt steve in new jersey. >> caller: hi, jim, thanks for taking my call >> of course. >> caller: i have been doing research and the stock forescout is a licensing company is this a problem and is the stock still a buy before or after earnings >> we like it. it is one of our better security plays. now, remember we have other security plays that we like more and our favorite is proof point. i think prefer that to forescout. all right. spotify still spot on. the street reacted unfairly to this report. pete has been slick with profits. does the company have what it takes to keep the monster run

going? going to ask the ceo i am asking bank of america's head of digital banking and how to stay on top of your financing. and tonight's edition of the "lightning round." stick with cramer. at&t gives you more for your thing. your getting the best but paying way less thing. now get 50% off a smartphone, like the samasung galaxy s9.

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before reaching $7 a barrel, is this rally sustainable. take whiting petroleum whiting is practically printing money. reported last week and shot the lights out

up 70% just in 2018. are the oils getting overextended let's take a look with brad holly. >> in many ways your oil company is different from everybody else you have run this company conservatively you don't like to overspend your cash and you have been lowering the amount of debt you have. this is a good time for whiting given that oils is at 70. >> it is a great time. we are trying to double digit production growth. >> it seems like you are drilling a lot more. but you are also hedging 60% to 70% of flow hedging so maybe you think that oil is not going to go to 80, 90? >> we think that manufacturing

and execution excellence is important. the hedging allows us to maintain our production and maintain our activity and generate those results. >> talk to me about the drilling efficiency here. it is a rather incredible trend in the last five years. >> down to almost single digits on drilling. we continue to drive that down. >> double that five years ago? >> double that. >> you have a novel compensation package, it is tied to drilling rate of return how do you measure that? >> we think that is good business we need to be sustainable business and generate long range returns. it helps us to make great decisions. >> you are also, you are upgrading, selling some, and trying to monetize talk to us about how you upgrade

your portfolio. >> looking for tier one opportunities, ten to 15 year windows. and highest rate of return possible in our portfolio and that allows us to be active in portfolio management. >> we know permian is cheaper than backan, but how do you get it to the market >> that is the great thing about the bakken we have both options excess capacity currently that we are enjoying out of the bakken >> most of the activity that we have today is on the kodiak acreage. we saw a great opportunity three years ago. the timing was difficult with commodity price.

but reaping the benefits of having the kodiak acreage. >> if you keep going with these trends, you are going to have a lot of cash and what is the plan. >> we want to grow as a company and want to do that at a sustainable business we want to increase our activity we paid down debt 50% over the last two years. >> that is amazing never in as much trouble as the stock indicated. from your point of view, but you had a good handle on it. >> we had $5.6 billion of debt at one time, we are at 2.9 >> oil out five years, the curve is different it is in the 50s because of the problems that we are having in the mideast, do you think all of this political activity can spike oil and go

higher >> absolutely. i think it is a great possibility. it is going to be volatile going forward. >> and theoretically, iran could what, embargo, or do an embargo again. what could iran do to make it spike? >> we think the fundamentals are strong, inventories are strong demand is strong we think the supply may have trouble making up for the demand so we are bullish on oil long-term. >> you certainly are you are being conservative and that is a lot of debt you had at one time and you are still paying it down and you are still in good shape. brad holly president and ceo of whiting petroleum. they have been doing everything right. "mad money" back after the break.

buffe >> announcer: lightning round is sponsored by td ameritrade it is time it is time for the lightning round on cramer's "mad money." 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 neal am massachusetts. >> caller: hello, professor cramer can you educate me on prestige brands holding. >> i'm sorry, not enough special there. go and buy j & j how about arthur in florida. >> caller: hi, mr. jim cramer, i want to thank you for sharing with your followers and viewers, your awesome insight, knowledge and wisdom i have done very well since 2005 watching your show i appreciate your insight and knowledge on cvs >> cvs and walgreen's both down. only a matter of months to a ceo moved to -- weigh on everything

having to do with drugstores sue in florida. >> caller: hello, jim. this is sue in florida and i am calling you about a stock that i hold. it is called lending tree. symbol is tree. >> the stock was great and then it got crushed as soon as interest rates are going up. the stock has had such a run, i wouldn't mind taking a little off the table. it has been a rocket ship since we had doug on john from tennessee. >> caller: i own a convenient store. my question is what do you think about valia yeent pharmaceutica.

>> how about tom in illinois. >> caller: big jim, a giant booyah to you. i got a question, i have a lot of friends and a lot of family members that have passed on because of cancer, do you have insight on nektar. do you think we can turn this around >> first i am sorry to hear about your losses to cancer. this is a highly speculative situation. i would go to key truda and merck. doesn't have the star power, but it does have the fire power. how about matt in minnesota. >> caller: a minnesota booyah to you. my stock is kirkland lake gold

do i buy more or keep holding? >> i would actually take a little off the table i don't see gold going anywhere. and i think about what warren buffett was saying today, if you have a profit in gold, i don't see anything wrong in taking it. paul in new jersey. >> caller: big booyah to you my stock is epr. do you still recommend buying that >> yeah, we see that stock sneaking back. we decided you know what, we think it was overly punished and looks like it could hold in here and i think it is overdone to the down side and making a bottom fred in ohio. >> caller: booyah. mr. cramer how are you doing today? talking about iron mountain. >> another one of these that was

oversold all of these situations that have been clobbered. they are all done going down, well not all of them and that, ladies and gentleman, concludes the "lightning round"" >> announcer: lightning round is sponsored by td ameritrade >> cramer exclusive ceo interviews, full episodes, analysis, and even your own sound board. special access to "mad money" 101 with resumules and techniqu. it is everything you need right when you need it the new madmoney@cnbc.com. licat? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step

until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade [fbi agent] you're a brave man, your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances.

i'm constantly telling you that bank of america is the best way to play rising interest rates. it can practically coin money when the fed tightens. there is another aspect to the story that doesn't get nearly as much attention bank of america has the best consumer technology around mobile business is taking share and taking names all over the country. having the best digital platform is the best in the season. i had a chance to talk to

michelle moore, the woman who has transformed this company into a digital power house. >> every quarter i see the numbers, they are far better than anyone else what is the secret. >> the secret is to listen to what our customers want. >> a younger customer wants ease, mobile, and maybe voice. >> the world is moving to mobile we had 1.4 billion mobile log ins in q1 alone. 100 million times that they are logging into their mobile phone to do banking. different than what you and i grew up with >> we are old fashion. and i don't know whether i trust my phone i want to go to the teller and go to the branch but this next generation when you probably want to lock up for life and there are millions of them, they are comfortable with

this. >> they are our voice generation over 60 million households in the united states talking to inanimate objects. so we know voice is the same make banking so easy do it any way you want. >> what does it mean for the bank versus brick and mortar. >> it is both. branch and digital how they work together you can choose to do anything you want on the mobile device. when you want to come in and talk to us about life priorities nothing can replace the human interaction. >> digital mortgage? fantastic. to sit at home and fill out the application. if you are a customer of bank of america, once you are done, go

into the app and it gives you a to do last and tells you what we need to complete the process you can esign things on the phone and connect to a lending officer. everything is there. >> how long does it take >> to complete the application >> how long does it take to see if i can get a mortgage? >> you or a millennial >> okay. >> filling out the application should be 15 to 20 minutes at the most then the process of credit check we are talking days versus what used to take months. >> person to person, i think of paypal which is a terrific company. you have got a competitor, is there room for both? >> yes, this is one big ecosystem. we would like to get cash out of the system it needs to be about security, ease, send money to you in a

quick easy way and all of us, we live together, we are trying to get a very secure ecosystem for our customers. >> let me ask you about your background it is important, i think many people will be sitting here saying, you know what, that person, is just on fire computer science, stanford, could have worked at google, and that's who i think, but your background is atraditional. >> i have a degree in economics from cornell. >> what did you know about digital? >> nothing, but what i did know is you need to listen to what customers wanted >> that is a great lesson. a lot of people have the computer science degree and try to invent something and hope people want it you are about ease of use, touch. >> absolutely.

together we build everything that you see that comes out in the mobile app my angle is about the client experience, how easy is it to use. big buttons, beautiful design. is it so intuitive that anyone can use it >> who is erica? >> think of the masses, how do we help customers live their every day lives give them information about bills coming do all of that delivered to the masses. >> i am old fashion, but fraud and threats. i mean i would think i can't use voice, because the voice may get it wrong or someone may use my voice. put me at ease >> so on the mobile phone, you have to log into the phone

hopefully you use fingerprint. and then log into our app, and you do it get. security is your voice interact with erica by voice >> i know you guys are ahead and a lot of it is by sheer energy of what you got michelle moore, head of digital banking, but head of figuring out what the customer wants at bank of america. thank you so much. >> thank you need a change of scenery?

the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done. the analyst didn't like it they thought it was boring and old, maybe best days are behind it but warren buffett liked apple and maybe today that is all that mattered 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 . quick: it's 5:30 a.m. in omaha, nebraska... we've driven eight hours to get here. super excited. quick: ...and something special is about to happen. you can feel the energy through the crowd. you only have to stand here. thousands of people, the faithful from around the world. i'm coming from shanghai. we're from belgium. ontario, canada. quick: every year, they come here, to see the star attraction -- warren buffett... -hi. quick: ...an unassuming 87-year-old and one of the wealthiest men on the planet. hi, everybody. he's got plenty to say -- and not just about investing. try to find your passion. you may not find it the first time, but don't sleepwalk through life. find something that you really enjoy doing if you can do it.