and flag day >> and the president >> and the president. >> that's right. >> you know what else is, semicowan initiated coverage back in may, to $20, up when semis, wer my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money" welcome to cramerica other people want to make friends i'm just trying to make you money. call me at 1-800-743-cnbc or tweet at jim cramer. today's market was very simple everything entertainment related caught fire.

anything else got left in the dust that's because of a high stakes bidding war between comcast and business for some key fox assets a federal judge just blessed the time warner deal with no strings attach attached we're seeing it for the key group and all of those that support it but as for everything else, it's not so hot which is why the dow gave 26 points today while the s&p inched up .25% while the nasdaq crushed it gaining .86% now before i get into the nitty-gritty of this stunning bull market and entertainment related stocks let's talk about what didn't work today it's pretty important. a key group for the overhaul health of the market, they were hammered because they can't make as much money as we thought thanks to the flat yield curve just slightly higher rates than what they're paying for the deposit. health care got left behind because the economy is going to

own these defensive stocks retail has run up so dramatically the industrials couldn't get any traction at all because the trade war with the chinese is still on and tariffs they're coming that's a lot of stuff that's not working isn't it we don't want a situation like 1999 and the only thing that was working was tech and then everything else, wow and tech rolled over big in 2000. you can bet that's what the bears will be saying the next time we have the s&p taking a hit like tech going higher then there's something else afoot here there's other groups, all the ones i mentioned they had their shot even as one particular sector has been held back and that's the media entertainment stock sector especially two of the biggest, disney and comcast this week though the industry got a two part catalyst. the federal judge that wants old media to have the fire power to compete with new media gushed

over a huge merger at&t and time warner and comcast has come up with a high bid for fox and said everything else in the group may just be too cheap for buyers to ignore let me walk you through both of these positives. earlier this week federal judge richard leon ruled that at&t can and must be allowed to buy time warner despite the previous objections of the justice department because if it can't then facebook, amazon, netflix, and alphabet will be triumphant it was a ruling/rebuke of the justice department and said antitrust was hope leslie out of step with the times and that f.a.n.g. won't hurt the earth unless the older media companies can merge to save themselves with the ink barely dry it comes up with an all cash pid for the fox assets until the antitrust ruling everything seems murky and you

couldn't tell the bid like this would go through and the justice department might shut everything down and the basis was too much concentration but with such a clear ruling one that could make the justice department look foolish if it tries to stop anyone from buying these fox assets, a comcast bid is the same as a disney bid they're equivalent all that matters is price and comcast price seemed to be just high enough to make it hard for disney to compete but not so high that it crushed comcast stock. how do i know this okay well, how do i know it because i listened to the pun da pundants i listened to the stocks and on the heels of the comcast bid yesterday and today the big money is betting disney may try to come back with something more enticing it can't beat comcast on the merits. being how much money they're going to pay for the fox assets. what has to be heartening to disney though, and this is really important, is that in the theoretical absence of the fox

deal it's stock is worth more than even disney's management might believe. why not? ever since the fox bid started disney's entertainment reach has gotten better and better it's movies more lucrative avengers: infinity war game the 4th movie to hit the $2 billion mark and it's a potential hit. perhaps what we're seeing today with the stock up more than 2%, disney's true much more potent colors meanwhile comcast stock has been punished and punished and punished so when we listened to the conference call last night about how great these fast growing fox international businesses would dove tail with the domestic cable and programming enterprises investors started buying the stock hand over fist setting up 5% to make it all cash purchase that can top disney stock bid. in short no matter who wins this, it's screaming that the stocks of both are undervalued

and they both deserve to go higher not one but both maybe disney doesn't have it given how much of fox's share is actually index fund who is will just sell to the highest bid cher is comcast. which brings me back to the entertainment sector facebook, amazon, netflix and google now alphabet are cheap but remember what i said yesterday, if the economy is going to slow down from the fed or trade war you want to own f.a.n.g. because these companies don't need a strong economy to deliver blowout numbers. at the same time what do comcast and disney need to compete how about all the technology companies that make entertainment and live programming look terrific on any device anywhere in the world comcast brief in favor of the fox bid has some incredible language about this moment in time as steve burke ceo of nbc

universal, my boss's boss said first we're in a golden age of content with more video consumed than ever before that will continue as demand for great content keeps increasing comcast and disney want to be providers of that entertainmen in scale all over the globe. it shouldn't be lost on anyone that just as walmart and amazon want to own india comcast and disney want that market too. it's going to be the world's largest by 2025 and that's what you get with some of these assets all you need is the underlying technology that makes this stuff possible and that's why the internet of things stocks were all flying today it's not just movies and television and other assets like discover or cbs being valued upward all the video games screamed higher the unstoppable twitter -- twitter is part of it too. up another 6%. spotify, my favorite i'm the only guy that likes this stock, gained more than 4% in fact, any are going up

including dropbox. we need to know more about this subscription economy so later tonight we'll be speaking to zora a company that wrote the book on the subscription economy subscribe. so here's the bottom lieb. y -- bottom line. yes i want it to be more broad based. a stock like disney which should have really been going down if it's planning to increase the amount of stock it's offering for the fox assets by a dramatic amount actually managed to rally and that's telling in a market that's gotten more difficult with tariffs and rate hike scores this reevaluation of old media values is definitely something worth cheering about allen in florida, allen. >> booyah to you. >> booyah. >> you know, about roku, it wasn't that long agatha they were just selling streaming stick but as cord cutting has grown they now have over 21

million active users and they're now doing more in advertising than they are in hardware. >> you're right. have to tell you, this is one of those that snuck up on people and it's very much part of this new economy and it is going higher i thought that amazon could hurt them more than -- well, they're not. amazon i'm not saying is not laying a glove on them but they can both co-exist. john in california, john. >> booyah. i'm here in sacramento we love your show. >> thank you i mentioned my time in sacramento what's going on. >> there we go you know, i have uc concrete long with the infrastructure thing. i'm losing my patience with that but we checked out a thing called pilgrim pride it's a play against the mexican tariffs as far as agriculture goes what do you think? it's in the toilet from 38 down or do you think it's going up? >> you are fighting the trend there. you have problems that are going to be a real problem for you you're a value guy

how about that let's leave it like that i don't necessarily share the affinity for that stock. >> mary in connecticut, mary. >> hi, good evening, mr. cramer. thank you for taking my call. >> of course. >> and i appreciate and value your financial mentorship. >> thank you. >> i am a nurse of 33 years in connecticut and i work in the operating room in the past i have based my investment decisions on a lot of the equipment and companies that i have worked with and seen. i am presently working with a device from atrc it's a device for the surgical treatment of atrial fibrillation. >> right. >> i've seen very good outcomes. the device is fda approved it has no competition. it is based in the usa and now expanding to china what do you think. >> mary, you obviously first of all -- like so many of our viewers you know much more than i do about atricure.

let me see if your situation is anecdotal or imperial and if it's empirical we have to represent the stock ourselves. sure i was more than entertainment based stocks and a couple of tech companies that help it but when you see revaluation of a sector like we saw today i'm telling you it's worth cheering on mad tonight a diddobe is fal after earnings and is it flat? the company has been an outperformer for years is it still king of the road or is this a red flag and online two companies that could prove to be problematic. so stick with cramer >> don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer, #madtweets se

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last night i introduced you to the newest members of the $100 billion club. the companies that crossed $100 billion in market cap. that includes adobe, the digital media kingpin that was first of the cloud kings to join this group. it reported after the close and delivered a 12% earnings beat with higher than expected revenue year over year it was a great quarter but remember as we told you last night adobe needed to report a super, duper great quarter after the run it's been on and alass there were a couple of issues within the quarter they experienced cloud, annual recurring revenue result that was only in line with

expectations and ever so slight adjusted operationness but wondering where it was at the end of the month let's dig into these numbers he is the chairman president and ceo of adobe systems welcome back to "mad money." >> great to be on the show, jim. >> all right tell me, i know that the stock is up 47%. there's going to be profit takeaway but there's just a tremendous surge in commerce being done over your platform. i'm trying to figure out where it's all coming from a lot of people felt it had to be tapped out by now it seems like it's accelerating to me. >> well, the entire digital transformation agenda is front and center for every enterprise and like you said, we believe that every shopping experience needs to be commerce enabled and so i think whether you're a small and medium business,

whether you're travel, whether you're retail, whether you're hospitality. you want to engage with your customers directly online and transact online and that's a tail wind that's going to continue for many years. >> let's talk about that that brings meto the acquisition which is what most excites me when you do one of these acquisitions it's very important. to me it gives you the complete sweep. now you're able to do commerce and also i think more important you have taught me this, artificial intelligence about what the customer might do how big is this for you guys >> we think it's an incredibly attractive acquisition and like all the other acquisitions that we have done here we think we can significantly accelerate that business. as we think about engaging with customers we're the only company that does content. we do content management and analytics to your point better than anybody else does and as we look for things that would compliment our strategy,

it's such a unique company that they do physical and it really enables us to complete the loop with our customers in terms of being able to deliver the experience online and then to completely transact online. >> there really isn't anybody, any retailer, everybody needs to be on adobe. monopoly is a dangerous word but at this point, who really is your competition i can't figure out who it is >> jim we're still focused on two large growing opportunities empowering people to create and you think about what's happening with new devices people are creating and we have to keep driving innovation in those areas. and help business transform. there's a number of companies that look at this opportunity every single day but i think as long as we can continue to

innovate at the pace at which we are doing, have our engineers really focused on artificial intelligence and predictive technology and we think we have great dproegrowth opportunitiesd of us. >> you have gotten close to microsoft and amazon tremendous edge to beat both of them what has it done for you guys, particularly the tie up with, with what you guys are doing with azure which is pretty amazing. >> well, i think it's all about scaling. what we do geographically and with large customers all over the world and we both know that the cloud provides significant benefits in terms of enabling your business to be global enabling you to be closer to your customers the relationship with microsoft in particular is actually such a synergistic one because we have

the leading marketing solutions. they have power bi and azure and infrastructure that allows us to leverage it across the world and what's unique about the partnership is we have a giant market so together we're addressing large customer needs together in terms of being able to integrate across each of our solutions so it's something that's unique i think and delivering great value to our customers. >> when we saw you last you showed us some fabulous augmented reality tools and i wanted to know, are they catching fire? because to me, as someone that's more of a 20th century guy than a 21st century guy i can hope this would work but i bet you younger people seeing how to use it and put it into play and it's going to be worth billions of dollars for you guys. >> we think everybody has a story to tell, jim and when you think about what we are doing all the way from education, k through 12, we have now made a product called spark available globally to every k

through 12 student so that in every education report they can use multimedia at the other end of the spectrum whether you're doing high end video for the mobile or for the silver screen. augmented reality, immersive media as we call it, we wanted it to be the only company that has the end to end solution so i think creativity will continue to be this incredible opportunity for us and i think what's unique is the fact that tens of millions of people are using our products every month and hundreds of millions of assets are being created using these applications if we can harness that power and intelligence and make our applications more accessible to people and more enjoyable to people that's such a unique opportunity. >> one last question, i know the stock looks down a little bit here but you have $8 billion you added, the same day you bought magenta you added to your buy back i guess you guys are ready if the stock comes down.

>> the new tax law helps we were able to get a lot of the cash that we had offshore. in terms of a company that's growing both top line and bottom line at incredible rates and we continue to be very disciplined uses of capital and we feel fortunate to be in the position that we are and really focused on the long-term opportunity that we have. >> once again, congratulations on an unbelievable run i'm glad we have been there all along with you good to see you, sir. >> good to be here, jim. >> okay that's the chairman and president and ceo of adobe all i can say is you want this stock to come down so you can buy it madmoney is back after the break. >> start your day earlier and smarter on top of the news global markets. >> stocks rebounding. >> time for this morning's big money stories. >> brian sullivan, worldwide

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>> what do you do when a high flying stock loses it's mojo and comes crashing down to earth that's a big question when it comes to tho after a stunning multiyear, okay, not quarter but multiyear rally thor hit a wall earlier this year. the stock is down 39% from its highs. for a long time investors believed they were on fire because millennials loved the things and then everyone started worrying about sky high labor costs and gasoline more expense. fast forward to when thor reported a good quarter with modest top line beat and modest earnings miss. but thor expects the business to remain stronger. since then it's bounced but still way off it's highs

has thor been punished enough? it's selling for less than ten times next year's earnings investment the estimate is too high we need to speak with bob martin the president and ceo to get a better read on how his company is doing welcome back to "mad money." good to see you. >> obviously, it was a difficult thing. employment costs had gone up because you were in the hottest, used to be the coldest and the hottest market and then we got these tariffs which we thought might not hurt you but looks like they have how much of these negatives are now in the rear-view mirror? >> the unemployment, the employment rate has subsided quite a bit in indiana an then we're also expanding in ohio and idaho where it's a little bit easier for us. tariffs when i was here last time, the actual announcement was while i was in your green room last march. >> you didn't think it would be an issue. >> we thought it would be

minimal and even today they're still all over the board and we're find weighs to counter act them whenever we can for us, taking some raw costs out, decontenting units, we still don't know exactly where they're going but we're a very reactive company and our guys are great at looking at content of product and looking at suppliers so we're still very optimistic that we can keep it to a minimal effect. >> now inventories were up 30% but you said that was appropriate. i'm trying to figure out how appropriate that really is >> yeah, they're higher but when we say appropriate, one thing we really look at is the aging of the inventory and aging has been down the last two quarters they ordered a lot in the fall they wanted stock for spring shows, open house and things such as that i know not everybody loves to hear weather, but for us it has been a factor and when you have snow, you know, march, april, may, when i was here last you had your third nor'easter and i think you had a fourth so these

are factors for our industry and since then we picked up. retail has picked up we have to work through so that overall we still feel great about the fundamentals and the long-term of the industry. we just need to work through some of the inventory. it is a little bit elevated. >> marcus was on here probably watching from camping world and said things have gotten very bad and he like others, he did cite the weather some what but recognized that things had gotten a little bit weak what i'm trying to figure out is how much of this might be cyclical gasoline did go up there's a notion that it's costing more to go buy or rent a vehicle. >> for our industry, gas usually isn't a big indicator. many times people think that it is but actually people just take shorter trips and our dealers

are very well versed in, they'll throw in a gas card or something like that if that's someone's objection so that really hasn't been much of a drag for us i think we didn't have the spring that we had this year we would have a very different conversation right now. >> when i have seen this kind of thing happen when stocks got a pretty good price to earnings multiple and then gets cut in half of the average stock it makes me think something big has changed? is there -- did everyone just go crazy and think you know what, this is a boom and like the housing problem in 2007, we made too many houses. could it be like that? >> we don't feel so. that's where, literally, we build to order so it's not that we make dealers take too much inventory. they bought what they thought was appropriate and we talked to banks, we can see that their floor plan limit is appropriate. it's not too high. when i go back to the housing bubble, and i lived through that

it was painful but the biggest thing you looked at was credit right now credit is flowing very freely we all know and we have known that rates would go up but for us a quarter at a time is not big issue. changes payment a little bit put it's not a big drag either. >> i want to go back to the tariffs. you write we were experiencing inflationary pricing increases and commodity based components there's no real way to get around it. that was part of the president's plan was to make it so it costs more there's nothing you can really do other than eat it. >> well, a little bit -- there are ways you can decontent >> decontent meaning >> different products out of units, you know, over the years sometimes we do get price creep and we're adding maybe too many features so we do this not just because of tariffs we look at our product all the time and we have taken one of our top products that just crept

up too much and you can totally change the price point by looking at what you put into it. so we have projects going on at all of our companies is there going to be some effect sure but we're really trying to minimize it and, you know, over time i think we can really manage it pretty well. >> one last question, you do not do a traditional conference call i would have said is there any improvement in the last month since the call was -- since the quarter was closed you would say yes there has been. >> in the overall market >> yes. >> yes as soon as the weather broke dealers are now busy they have great traffic. we have great shows before but when you have a lot of snow people can't deliver the units so once it broke in may it instantly got much busier. did we make it up? for us we don't manage for the quarter. we manage for the long haul. we feel great about the demographics, the fundamentals we think people are going to continue to camp for many years and we have some great opportunities that we're

investing more in our marketing efforts and trying to reach the younger buyers if you can get 1% more of the population and go down to that younger buyer it's a huge number and great opportunity for us. >> thank you so much president and ceo of thor industries "mad money" is back after the break. benjamin franklin captured lightning in a bottle. over 260 years later as the nation's leader in energy storage we're ensuring americans have the energy they need, whenever they need it nextera energy. does it look like i'm done?yet? shouldn't you be at work? [ mockingly ] "shouldn't you be at work?" todd. hold on. [ engine revs ] arcade game: fist pump! your real bike's all fixed. man, you guys are good! well, we are the number-one motorcycle insurer in the country. -wait. you have a real motorcycle?

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in great detail and weep for forgiveness. but is it too much to ask that they, you know, acknowledge the problems they're having and show some recognition that something is not up to snuff many years troubled companies give us mea culpa. beg for mercy. i just want some evidence that they're living in the same universe as the rest of us yet that seems beyond some companies. often you'll hear conference calls that are full of relentless happy talk. what they have to know is its a disappointing set of facts i expect them to say 2 plus 2

equals 5 or that oceana has always been at war with east asia i thought about that after last night's conference call. men's warehouse and joseph a. bank among other brands. i thought about this on tuesday night after trying to put a positive spin on what is a best and uncertain future gandi had nothing on this guy. i know there was a lot of skepticism when they bought joseph a. bank in 2014 which was viewed as way too much given the performance of the stock since then it might seem like an ill advised deal it's now a $1.3 billion company. on the other hand the stock had a monster run from its lows last year going from $9 to $33 last night. it was back on track until it reported the not so hot numbers. which is why it was so mystifying that management didn't say there could be some soft issues with gross margins

going forward or give you some signal that business could be more promotional definitely more promotional. some more promotional than others everything was entirely rosy there wasn't a single cautionary word you would have thought they had blown out every line item until you got to the q and a session but an analyst from deutsche bank asked the company to hold our hands a little bit about the upcoming quarter selling in general and administrative expenses as well as the gross margins. you could have heard a pin drop but only if you have great phone service because after all this was a conference call. it was a total wipe out from there on wall street rendered it's verdict. guilty in terms of performance and lack of credibility. hence the stock's 21% decline. we got almost the same thing when h and r block reported a quarter. it was in a hideous tail spin the day before everything was fabulous until

you got into the q and a the company had fallen well behind industry leader intuit by using a brick and mortar strategy i think that if he had been more forth coming about his problems the stock wouldn't have been hit so hard. what should these company versus done a few years ago palo alto had similar issues the future looked full of pain so then ceo admitted that there's issues with this sales force and they weren't dealt with well and they had to be fixed. the stock got hit but the credibility was intact and it soared when it fixed the problems and the numbers bounced back i wonder if palo alto stock would have ever reached the lofty levels i hope you bought the stock on the break down last week the new ceo purchased $6.6 million in the open market. same thing happened a few years

back he had numbers that looked good on the surface but he himself called attention to some deals that hadn't closed and how bummed he was. never looked back. whether hnr block are hitting speed bumps or looking at short falls going forward they did themselves no favors i'm now deeply troubled by these companies. much more troubled than i would have been had had they acknowledged the extent of the problems i'm not expecting 100% transparency but you're going to hurt your credibility. that's a real problem. just say things aren't going so hot right now but just you wait. we have a plan you need patience but that patience will be rewarded. stick with cramer.

it is time, its time for the lightning round. and then the lightning round is over are you ready? time for the lightning round i'm going to start with steve in florida, steve. >> booyah mr. jim, how are you doing? >> i'm doing well. how about you, sir >> okay so far so back in april i bought skechers because i thought those new golf shoes would really make it take off and anyway the sales are up 9% but the stock dumped. >> the stock had been a red hot momentum stock not unlike deckers and deckers delivered and skechers didn't. it's in the penalty box until the next quarter taif dave in illinois, dave.

>> hello how are you? >> all right how are you? >> great a quick question for you on campbells. i noticed their stock was on a downward they have a lot of debt. senior management changes. i'm wondering if this is the time to buy. >> it's an interesting question because i see the stock sneaking back and a lot of people think it's going to sell to kraft kraft heinz. so i'm going to say -- >> don't buy. >> how are you doing >> doing well. how about you, don >> i'm doing great, thanks what are your thoughts on eols >> everything is a play. the stock is coming back now i'm going to say it's too crowded for that and i'm not going to recommend it. let's go to damien in florida. >> how are you doing, jim? love the show. i still have you on record on my dvr, man. >> thank you.

>> ticker symbol zs. >> we like that stock very much. one of my favs in the group. let's go to bill in south carolina bill. >> yes, jim, booyah. dexcom. >> you know we like that by the way we think there's room for them and avid but boy are they on fire i always felt one at a someone is going to go buy the company it would not shock me. by the way, medtronic wouldn't be a bad idea. just go do it. robert in florida, robert. >> well, yeah, jim, how are you? >> i'm good. how about you, robert? >> wonderful, thank you. i'm so happy to talk to you. i was hoping that you could shed some light on gw pharmaceuticals. >> it's been red hot everybody wants a legal pot play that's one we have been talking about canopy that's another and let's not forget that constellation brands

they have 20% stake in canopy. any one of those is fine let's go to craig in texas craig. >> booyah dr. cramer. >> doctor, i like that. >> i'm a long time listener, first tile caller. my stock is lockheed martin. >> this whole group is going down because it's bapeace is ba breaking out in the korean peninsula. give me a break. i think lockheed is inexpensive too but i see when stocks are down trends give them some room. wait a day or two and then let it drop 5, 6, 7 period points and then you'll be fine. david. >> booyah. in pittsburgh pa, home of the pittsburgh steelers, six time champions. jim. >> yeah. >> question. >> yeah. >> i'm investing for my grandchildren. i bought some docusign. >> that's is such a good

company. zora these companies are doing -- they're doing incredibly well. docusign is at the forefront of the subscribed economy let's go to ron in california, ron. >> booyah, jim. >> booyah. >> how are you doing >> i'm good. long day what's going on. >> oh, i was hoping to hear something about one of my stocks, check resources. >> mineral stocks remain strong. at this point in the cycle you actually are going to keep some strength in tact it can break down to the upside. i'm taking another one let's go to clay in north carolina, clay. >> mdgl. >> this thing just went up gigantically it's from my hometown. it's from about 4 or 5 minutes from where i grow up but have to do more work on it because it's been a rocket ship i saw the release the other day and i want to check it out tom in texas. >> hey, jimmy, howdy from texas and a world series champion

houston astros, justin verlander, kate upton booyah. >> that's a complete roster. >> masco. >> why when we can be in home depot? let's be in the king that ladies and gentlemen is the conclusion of the lightning round. >> the lightning round is sponsored by t.d. ameritrade td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪

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>> you're afraid of what rising interest rates did the economy everyone is worried about tariffs. come on. some stocks are going to keep working regardless i'm talking about secular growth stories. consider the case of zuora it's one of the best performers in the class of 2018 it became public in april. including a 27% gain zuora is a cloud based software company. all of those companies that are trying to sell their products as a subscription service, zuora helps them launch and manage and grow their business. it's brilliant, right? these are all showing that subscriptions are where the money is and even auto makers are trying to sell people cars zuora is fabulous in the subscription based businesses. i know that for a fact because at the street where we had a bunch of subscription services

including my charitable trust we use it to optimize that business and do great job nowthe numbers two weeks ago posted 60% revenue growth. if you want to understand the enthusiasm here, they're here to learn more about what the future holds. good to see you, sir. >> have a seat did the number 11 employee of sales force you understood subscription and software as a service from day one, explain to people how we're not about products anymore we're about services. >> well, i think companies now are realizing that the subscription based business model is the business model of the future the reason for that is customers. think about you and think about myself every day that passes we have to buy less and less stuff. we talked about that but it's exploding. we used to have netflix and spotify but now we pay for exercise bikes as a sub skrisc n subscription, even travel, this

is the subscription based economy. >> i was thinking much too small. someone in their name in whether they're able to get through the web and enter their subscription or not but you're talking about the end of ownership. >> that's right. >> what a concept. >> i think two years ago we were talking about this this whole subscription business model was just new and now people are extrapolating out and there's no reason you should have to buy anything if you're not buying dvds or cds or software, why should you have to buy houses or cars take out your phone and point to service and get what you want and just tap into a subscription service and this is what we're starting to see today. >> this is a moment in your book that i just love i'm urging people to buy this. where you talk about the new york times as a unicorn. if it were just to start today we would pay so much more for it because it's a limited subscription business. >> that's right. companies are saying we have a million, two million, 3 million

subscribers and they're getting these multibillion dollar valuations and you're talk about a million subscribers just three years ago and now they eclipse subscribers and it's a really powerful story but people need to start thinking about these businesses in a different way. >> yeah they do. these are companies that we didn't initially understand. in the book you talk about the day that adobe decided to go subscription and it seemed like that it was a courageous thing but in retrospect it was a necessity. >> you looked at that day, revenue was down, earnings were down but this is because they, instead of trying to get $200 off of a single purchase, we're going to keep the customer for life and if we can do that we'll be a much, much stronger company. >> but there's companies that haven't done it and those are the ones being left behind. >> yeah. >> that's why we wrote the book. a lot of companies are saying we see the subscription based model of the future. how do we transform? this implies an entirely

different way of doing business. you have to build products differently and sell differently and market differently. >> we're starting to see it. today happened to be a great day. drop boxes are up. netflix is up. people are starting to realize wait a second, don't look at the snapshot right now it's harder for a lot of people to understand, isn't it? because we really haven't -- many people, even managers have not gotten their heads around what a balance sheet looks like and income statement looks like. >> we have a whole chapter around the financial model of how we have to see it differently and i was at sales force when we went public in 2004 and for years and years wall street didn't understand it but if you look at the success of the ipos, this past year i think wall street is starting to embrace the subscription based model and when they look at us, what they really liked about us given our customer base and half are outside of the tech industry is that investment in us is an investment in the entire subscription economy. >> it's the pure play. >> think of us as an index.

>> i do. i do that. i think there's also a great chapter when you talk about how the i.t. guys don't get it that's a revolutionary thought. >> well, the iflt .t. infrastrue is built on the profit economy and it's unit and scale and it's not about those things anymore it's not about supply chain manufacturing, inventory, it's about turning your customers into subscribers and launching services and so the old system of the past, erp systems aren't going to work anymore and i.t. has to change. >> i think you can change it i think these people have to bring you in, right? they have to until they figure it out themselves. >> it's the last ten years we built a pretty unique piece of technology that allows any to transform. >> you should be proud you caught the economics of the moment and the book will explain why these stocks deserve to be

higher than you think they're too expensive. that's the founder and ceo of zuora. what a remarkable company. "mad money" is back after the break. using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay! tripadvisor searches over 200 booking sites... to show you the lowest prices... so you can get the best deal on the right hotel for you. dates, deals, done!

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>> he did a little subscription business they added one and put through a price increase 3.5% goes to 5% etsy up huge we visited them in brooklyn and i have to tell you i'm impressed. so comcast bid ignites the whole group and i don't think it's over i want you to keep track of everything entertainment because i think there's several more days where they can continue to rally. and yes, all the tech is going to do the same watch nvidia which is at the heart of much of what we're looking at 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'll see you tomorrow

>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ i'm jorrae. and i'm kelly. and we're sisters from philadelphia, pennsylvania. you know why it's gonna be really good? 'cause you made it. because i made it. i'll tell you the truth. we've cooked all our lives. we love to cook. my mom was the best cook ever. we would go to church on sundays, come home, and she would tear the kitchen up. so it's very important that we continue the tradition. whoo!