>> tyler matheson's birthday today. >> get out of here >> he sounds like a country singer he's trading like it's his birthday and look at hfc and brki tthupde >> thanks for for us thanks for watching. see you back here tomorrow at 5:00 "mad money" 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 cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain you, but to educate and teach you, so call me at 1-800-743-cnbc, or tweet me @jimcramer. when apple became the first american company to join the trillion dollar club last month, i told you its rivals would not be far behind.

sure enough, today amazon crossed the trillion threshold, even as it wasn't exactly a huge day for the average. dow only falling 12 points by the way, a stunning comeback. s&p edging down .17% nasdaq climbing .3%. but even as amazon keeps winning, up into the 26 points, its fang compadre facebook keeps sinking. stocks shed another 4 1/2 bucks today. >> the house of pain >> whoever thought it would have that address if you want to understand that market, you need to get your head around these two faces of fang my acronym for facebook, amazon, netflix and google, now alphabet we need to know if it's a broken stock or a broken company. two very different things. and we need to know if amazon really deserves this trillion valuation. let me start with facebook today it caught a brutal down. they argue that facebook's

business model has gone bonkers. for years we love facebook's model. they sell advertising, specifically advertising content that you and billions of other users create for free for them compared to the traditional publisher which has to pay for people to write copy, facebook is in a fantastic position but now the grim reaper has visited this once fictionless model, their word, not mine, because it now needs to police its content, and that's very expensive. making matters worse, users are fleeing from facebook to instagram. and while they're both part of the same country, instagram has lower gross margins, and we don't want those. >> sell, sell, sell! >> combine the flaws into a single stock and you get what nathanson calls a toxic broom, hence the downgrade. they think facebook is basically a broken company bao i disagree facebook's not broken company, but it does have a very, very broken stock

full disclosure, we own facebook for my charitable trust. we sold some higher, but we've still got a position it's painful when the stock pulled back to 160 today, foreclosing at 11 and change, it's down 218 in july, i have to admit, it's tempting, look cheap after all selling for 20.5 next year's earnings estimates. that's roughly the same valuation as clorox but facebook is supposed to have much faster growth than clorox, although not as stable. if facebook keeps cutting numbers, it doesn't matter how low the stock goes, it won't matter the growth oriented investors will keep selling it and selling it and selling it. they'll hit every single bid they'll keep knocking it down. don't forget, this company had been growing its earnings at a 40% clip now they're talking about the possibility of a 20% growth. still pretty magnificent, presuming mark zuckerberg, ceo,

can actually hit the target. [ gunshot that's why the stock continues to get slammed facebook is caught in a horribly painful process that we've seen many times over the years. its shares are being transferred from growth investors to value investors. the shareholder base is changing right before our eyes. so facebook can't bottom until all the growth chasers are gone and everyone left in the stock is a long-term shareholder searching for value. that's the definition of a broken stock, and it will probably stay broken for a little while, at least until we see the next quarter then maybe the value investors will get some vindication. now i know that may be cold comfort with the stock in free fall, but at some point it will bottom hopefully not like that sound. why? remember, facebook is not a broken company it takes a lot to break a company with no debt, tons of cash and still real growth, even if that growth is slower than it used to be it's just a shame that

facebook's been its own worst enemy. the rapacious and cavalier attitude, sorry, the rapacious and cavalier attitude to selling your data has put them in a tough spot if zuckerberg had hired an outside firm to examine this issue like i suggested, maybe it wouldn't be in the crosshairs every day. it's like the lead story of the "new york times" was bad for them they make it real hard to get out of the penalty box, and they'll be on the hill tomorrow being peppered with questions again. i'm sure some will ask about thattimes story about terrorists using facebook the narrative -- everyone uses that term narrative, so overused, but the narrative is bad. so let's switch. i just got back. i don't want to be negative. let's talk about what's working, like the newest member of the trillion club. let's talk amazon. here is a perfect example of what happens when wall street views a company not as an earns per share situation where facebook finds itself, but what's known as a total addressable market, or tam play.

in other words, amazon is being judged on the scale of the opportunity each of its three core market, retail, the cloud and amazon web services and advertising. in retail they're just scratching the surface worldwide. in the cloud amazon's the largest and cheaper player in this fast growing industry in advertising, they're incredibly effective at offering targeted ads just at the point of purchase. and i'm not even talking about amazon's opportunities at entertainment or zrikz everyone is watching hey, where do you get your stuff this weekend everyone says amazon whatever happened to netflix when you judge amazon by the total addressable market, the trillion dollar valuation seems too low, as long as the company can keep executing now, the confusion for many of you is the comparison between amazon and its cotrill onaire. apple. why is one being valid on total market opportunity while the other is being valid on simple

earnings because amazon's earnings don't tell you very much amazon's a secular growth company that spends a fortune to expand its business. they could turn off that spending tomorrow and show much higher earnings per share numbers. that obe a poor use of capital we want them to keep chasing revenue growth all over the place. the more money throw at amazon weapon sources or advertising the better apple is considered an episodic grower many believe the company lives and dies by the latest iteration of the iphone. a cheap stock would suddenly become much more expensive i think that is the wrong way the look at this great company the phones arejust the razor what i care about is the blade the service revenue stream if you want to back up your 40s listen to apple music or download any kind of apps, you're paying them for the privilege. you know what? you want the discover how valuable it is just have a left the phone in my pants pocket, and somehow it ended up in the washing machine.

anyway it doesn't work after it goes through the washer, but i have backed up my pictures. so as they keep adding new user, and right now i'm hearing they might have as many as 700 million, then the service revenue stream, that is a huge tam, total addressable market. apple's got a monster growth opportunity, and it's not getting the credit even up here that it deserves what we're seeing right now in apple is kind of the opposite of facebook value investors are giving way to growth investors. apple has so much cash they can't employ it in their current business that's why value investors like it but the service business, they set up gross stock too now there is one area where amazon handily beats apple for all president trump's tweets about how amazon is ripping off the post office, small potatoes. amazon has never been able to penetrate china which is now a high quality problem bottom line, when you own the stock, you need to understand

more than just the company the shareholder base is every bit as important facebook's getting crushed as it transforms from a growth stock to a value stock but the same growth investors still love and thirst after the shares of amazon, which is how it could cross the trillion doll dollar the kickoff, if you're in philly, whether you own facebook, whether you're short these, i don't even care i want you to come by the comcast center and we remember jfk boulevard, i'll see you there bob in new hampshire? bob? >> caller: hi, jim thanks for taking my call. my 14-year-old daughter carmela and i watch the show every night. >> that's what i want. and i've been getting that more and more and i tell you, it makes me thrilled how can i help >> caller: awesome

my question tonight is bill tilray should i sell? >> take half off you've had a magnificent run canopy growth is the one i've been involved in let's not be greedy. i say ka-ching ka-ching. duane in texas, duane? >> caller: a great big boo-yah from kaufman, texas, jim. >> man, i haven't been there yet. >> caller: i want to first say thank you for teaching us first how to do our homework and make more mad money my question is regarding snap incorporated we've held the stock since last year following the $100 million deal with time warner. and it's steadily been a non-performer. the question is, with the start of kristen o'hara today as the vp of global solutions and the recent controversies facebook is experiencing, should we hold on for recovery or take our losses? >> snap is today at its low.

try not to recommend selling stocks at their low. i think if it bounces, which it could, that might be your better chance to exit it is not one of my favorites. i like twitter more than i like it i think twitter has come down too much but my favorites remain amazon, alphabet, apple. all right. growth and value can be a tricky thing. when growth switches over to value, it's perilous but when value goes into growth hands, oh, what a beautiful sight. on "mad money" tonight, why the latest moves in the retail sector are leaving some analysts stuck. and one of the hottest sectors in the market, don't miss the coronation of the cloud kings. and it cleans up everything from oil spills to hazardous wastes clean harbor is back i've got the ceo stick with cramer. >> 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. welcome to the xfinity store.

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you know what's incredible about this amazing retail rally? the stocks keep running long after they report amazing quarters that's highly unusual. they're kind of like the energizer bunny. they just keep going and going and going. how is that possible i think it's because the analysts themselves have never seen anything like it. the earnings surge have been so huge that they don't even know how to draft the superlatives to describe them. retail is the single best group in this market and you have to buy every one of them. it might be that they're afraid. they see the numbers, but they can't bring themselves to believe that things can possibly be this good they've been burned by retail too many times plus, there is still some penalty for being wrong. if you decide that dollar tree has finally gotten its arms around the family dollar acquisition, that would have blown up in your face there was

a perception that best buy couldn't possibly miss given how well it's been doing oops nobody wants to be a guy who recommended macy's at 40 how about you believe the gap stores was using all that artificial intelligence data mining they were talking and it was the wrong formula? maybe had the shoe on the wrong foot with footlocker as it was hard to imagine they could screw up things so badly plenty of individual retailers have indeed dropped the ball still, with this spectacular best from lululemon don't believe today's downgrade, please, i say the real risk in retail is that you miss this stung move that's especially true for the downside for all but the worst retail sers pretty mild. give you a dip and bounce right back how about children's place which was held down by sellers initially but then came roaring back, something i've predicted given the innate strength of sim t same store sell numbers and the positive quarter itself. so the shorts were only overrun thanks to the amazing work of the ceo. i'm still trying to figure out

the forensics of that lululemon. i spent time with them this spring they're bullish. but not so bullish they could have seen a mess blowup coming a lot of that is about fashion, and fashion is hard to game. put yourselves in the heads of some of these analysts they don't know what to do they can't predict double growth in stores off of one quarter so they pick their spots like goldman sachs did today with an embrace of nordstrom, kohl's and tjx. they've all run but you have to start somewhere. improvement in then own online businesses made all three susceptible to an amazon annihilation you want to go down better times are coming and nothing can lose, why don't you try foot locker? but today's momentary decline in nike in response to their sponsorship deal with colin kaepernick while it's a device of choice, i have to believe that the folks from nike know what they're doing. never made a lot of money betting against those guys and let's not forget cramer fav

walmart. sure, walmart is more expensive than it used to be, but it's also a better company than it used to be, even though its stock is down 3% for the year. that's all that matters that point the strength in retail should not come as a surprise to anybody. the analyst mace be too afraid to fully embrace this run, but you don't need to imitate that i take the other side of the trade. much more "mad money" ahead, including my take on the cloud kings that continue to trounce the s&p 500. can they maintain the throne plus, clean harbors is the company that manages some of the world's most hazardous messes. i'm so glad they're back, but can the stock help them clean up themselves and it's never tloo late to say i'm sorry. autodesk and the shareholders tonight. i'll tell you why. stick with cramer.

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♪ wake me up when september ends ♪ welcome to september [ buzzer ] [ booing ] >> if you ask most professional money managers, they'll tell you that october is supposed to be the worst month of the year. wait a second, me? i can't wait until we get to october. that's how much i dislike september. this has typically been a bad time in september we tend to get hit with serious bouts of market wide selling. >> sell, sell, sell! sell, sell, sell >> liking to ring the red and trying to beat all the other managers more important, the fear of october is so great that it makes investors very jumpy and wanting to get ahead of it by selling in september you're going to hear people come on tv and talk about a blood baas next month as though it's fated, and that kind of rhetoric really does hurt that's without even mentioning specific issues, tariff, trade that could smack us down at any moment if president trump or china or europe or canada

decided to escalate the trade war. so you know what i'm going to do i'm going to inoculate that's right i'm going to prepare you for september. but it does tend to be especially tough on the market's best performers. that's where you really see telling because people love to take profits on their wins at this time of year. so you should be ready to buy them into weaknesses as they go into the end of the year in particular i want you to put the cloud kings on your shopping list. cloud adoption is a huge secular theme that can't be brought down by tariffs or trade or trump or anyone it's that big. it's that important. it's that strong these days everybody is embracing the cloud to cut costs, improve customer relations mine data and generally make their business data more competitive. that's why the cloud kings have been fabulous long performers. these are the kind of stocks that should bounce the hardest after a big sell-off and i'm not including amazon i talked about that at the top of the show, and that's the old

cloud king but who are these royal players? why don't we take them one by one. start with the most controversial, at least for this eek, workday it just reported this company has done so much to put human resources on the cloud, saving companies millions and millions of dollars. i like tonight's quarter, which included a raise in 2019 fiscal revenue, but there were some nitpickers glomming on to sales forecast that didn't meet expectations the stock selling off at the close. that's when you pounce on a king i want you to be ready for any weakness tomorrow to buy, because there is nothing wrong with workday and much that's right. second, many people think of adobe as a publishing business because they know acrobat or photo shop or flash. but it's really more of a cloud play that helps other companies present their wares online the ceo has a vision, and it's a vision that all companies need a cloud strategy for the market. adobe helps businesses understand and connect with their customers, and that's essential if they're going up against, say, amazon okay

adobe is up 52% year to date, trouncing the gain of the s&p 500 of the same period i think adobe south bay a first round pick it rallied another three points today. autoplay comes with adobe. anyway, third red hat is a laggard, at least for the cloud kings. only up 24.5% this year. in any other industry, that would be some incredible performance. i like to think of red hat as an enabler that helps other businesses on board the cloud more efficiently open source software, but they make the real money from selling service subscriptions to keep that software rung smoothly. the thing about red hat is every quarter feels like a hard fought battle, especially the last one which sent the stock plunging to 132 in a matter of days. since then it's been slowly working its way back up, step by setence, inch by inch, slowly this one goes higher i think it remains a buy, and these levels, well, got it to tell you, rallied another buck

76 today you got to get in salesforce.com, which we own for my charitable trust. you can follow all of our moves by joining the actionalerts.com club salesforce delivered a ridiculously strong quarter. i was away the company had $21 billion remaining performance obligations. what used to be called future revenues under contract. it confused people suddenly rpo, it was like run pass option. that's what people thought it was. no it's a new metric. the newness of the term and the conservative nature of the guidancethrough people off, and it didn't help that the stock had run going into the quarter in three weeks time we're going to be in san francisco at the huge cloud conference. regina, my executive producer. do we have roelt rooms >> yes >> it is the hardest hotel room. i'm waiting to get on a cruise ship it's the toughest hotel to get in the world thank you, regina. sorry. i had to get that done

because if i don't have a room out there, i'll be sleeping on the sidewalk i recommend pick up salesforce before that event. up 50% for the year. every pullback has been a buying opportunity. the salesforce dream force has been a fantastic time to buy i don't think this dip will be any different. fifth, service now is the least visible of the cloud kings it's all about automating all sorts of back office functions making the internet run more smoothly with power. i thought the stock my slip a bit after one of my favorite ceos retired last year, but the new ceo, john donahoe, oh, man sorry, frank, because i know you watch, but don mahoe is doing an unbelievable job it's gotten too hot to chase particularly because it rallied 3 bucks. closed up 200 today. let's give it a chance to come down six, what about spunk? what can i say about splunk? another guest of the show. this lets businesses get answers from their data without us

having to know all the questions to ask beforehand. end quote, if you're a retailer competing with amazon. here's what we call on the kings. when splunk reported six months ago the quarter was panned, but i thought the negativity was ridiculous should it -- it shouldn't have come as a shock when these guys trounced the estimates, it's now up 55% year to date. this one maybe got a little too hot to sell too. any kind of sell-off, this one is great congratulations. i never doubted you. clowns did not me which king can be bought right now without hesitation i'm going to give you the one. it's vmware. vmw. i don't say that because coo sanjay punin came on the show and said i should call these stocks cramer cloud kings because he didn't want me to lose bragging rights i like vmware because it's a crucial low cost way for companies to go digital and on board the cloud. still, it's been weakest of the

cloud king, up shabby 22%. in many ways it has the best growth prospects it belonged to emc which was bought by dell and now this widespread but incorrect belief that dell will cram down the shares i don't think it's going to happen bottom line, these are all strong companies riding a giant secular growth wave that's still early. so when you hear buy on weakness, you need to think of the cloud kings. and given that this is september, i expect us to get some serious slip slide that gives a chance to pull the trigger on any one of your favorite kings of the cloud. ron in pennsylvania, ron >> caller: jim how are you doing? >> i am doing well. >> caller: formerly the long suffering eagles fan here. think l 3, man we're going to get another one >> man, i'm so fired up about thursday i intend to not sleep between wednesday and saturday and i want you to come see me at the comcast center, because

we're doing a special blowout show from the comcast center how can i help >> caller: that would be great that would be terrific >> i want everyone to go. >> caller: thank you for your perspectives on both square and alp casian over the last year. they're my two biggest holdings. it's been great. however, the primary reason i'm calling is i'm trying to understand the trading action in dropbox over the last six weeks or so. it got murdered a along with th redhat earnings announcement, and it looks like a ski slope ever since >> well, look, i remember when home depot dropped to 192 and you had to buy it. the stock was wrong. when i said splunk was a winner. same thing with dropbox. it's a buy by the way, i want to thank the fellow who bought me a mescal in sonoma last week when he said i bought square because of you and a bunch of other stocks.

thank you to everybody who thanks me if we made you some money. and don't be afraid to [ booing ] that's okay too. september is typically a tough month, but it didn't have to be if you have this game plan use any weakness to buy these solid kings of the cloud they're still in the early innings. much more "mad money" and oil spills and natural disasters clean harbors helps manage the midwest. is he prepared to clean up i'll talk to the ceo and then it's time for mea culpa when it comes to auto deaths i'll tell you why. and tonight's edition of the "lightning round." so stick with cramer tomorrow, kick off the trading day with ""squawk on the street". live from post nine at the nyse. >> you're really itching to get back the work. i can tell. >> i've been practicing forever. you don't need to have a florida

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when the price of oil spikes like it did this morning, it allows all sorts of stocks to rally that i don't think about i'm not just talking about producers and drillers take clean heartbreak, clh long time viewers might remember they're the leading play in end to end hazardous waste management they clean up after all sorts of disasters, everything from oil spills and hurricanes. they also help energy producers and industrial companies with environmental cleaning clean harbors gets a ton of business from oil and gas industries, two very messy industries when oil prices collapsed, this stock did fall out of favor with the wall street fashion show lately they've been making a comeback and so is clean harbors. the company reported two very strong quarters in a row and the stock is up 27% year to date could it have more room to run let's check in alan mckim. welcome back to "mad money." >> great to be here. thank you. >> i've been thinking and looking at your deck, which is

really very enlightening you have become the ultimate sustainability company for our environment these days >> well, we really have been focused on recycling and we really have built out a wonderful platform, particularly with our safety claim platform we're now able to gout oand collect over 250 million gallons of hazardous waste oil we refine, that recycle it and make it back into a great product that we can sell back to our customers and really use it over and over again. that's one example of our sustainability >> it's a total of 3.1 billion gallons refined that goes right back in for motor oil that would perhaps end up in the ground >> well, it's not that much. the market is about 1.2 billion gallons. we have strong market share, about 700 strutrucks out there

servicing about 300,000 customers. >> you also have built in many years an incinerator of i know at one time we thought incinerators were not the most environmentally friendly way to dispose waste. it looks like the epa has decided the incinerator is the way to go and you've got the first new one in 20 years? >> we have now we try to recycle and reuse as much as we can. but we know that there is a lot of waste material that just has no beneficial reuse. and we operate about seven incinerators now but the latest one we built in el dorado, arkansas, $120 million investment meets the new mack 2 standards and really focused on the chemistry, because those are the industries that really rely on us to provide a safe disposal for very difficult materials that they're now generating >> all right i just came back from the gulf, actually, right off a bunch of oil rigs in grand isle i could see if a hurricane came in, it was very strong, you could have a lot of destruction down there does clean harbors stand by

right now before a hurricane and say we are ready are you down there >> oh, certainly we have 450 locations in north america. close to 15,000 workforce. we handle the bp spill in a very large way as an example. but we handle about 7,000 emergencies a year and if we were needed certainly we would mobilize workforce to handle any kind of event, as we have in the past events like hurricane katrina and rita >> now you mentioned the chemistry. i kind of drill down that. one of the these cease of "mad money" is we're in an industrial renaissance. it's really focused on natural gas and refining and chemicals there is a great business for clean hash. >> correct >> it's a great business we're seeing a lot of new opportunities. the economy is really strong we're seeing new chemical plants being built in the gulf, and our incineration utilization is running very strong. the volumes of hazardous waste

being collected and handled by us are at record amounts right now. so we're really excited about the economy right now. >> now in the last quarter -- actually, the last two quarters you've been guiding up a lot of people were -- are now impressed that clean harbors has become the old secular grower that we used to expect it kind of got side tracked a little bit it seems like with the last acquisition what you have done is been able to put together a string of quarters that indicates you not that -- even though the growth of the economy is the good for you that you really are back on the secular growth path that we always remember clean harbors as being on. >> we're having a pretty good run here but quite frankly, we bought safety clean back in 2012, probably at the top of the market and as you mentioned earlier, the crash of the crude oil market really had a devastating impact on our business when it went below $40 a barrel we have our cost structure align and safety clean is really doing

a tremendous business right now. and we're really excited about its prospects. even though that acquisition took a little while to get going, it really is paying off for us and our oil and gas business is stronger now we've moved a lot of our assets out of canada. we're down in the permean. we met back in north dakota there several years ago, as you remember and we see some life coming back there as well. so we're excited about what's happening with oil right now >> well, congratulations on the sustainability this is a stock that i know millennials who watch should be thinking maybe i should be with clean harbors because the numbers are really terrific. that's alan mckim, chairman and ceo of clean harbors, a great long-term growth story again "mad money" is back after the break. nice. good evening, sir.

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"lightning round" is sponsored by td ameritrade >> "mad money's" going on the road to my hometown of philadelphia for the big nfl kickoff. we're celebrating my team, go eagles they're ours, and we're there. we'll be talking football. we'll be talking stocks, hey, two of my favorite things. i run with the bulls, but i fly with the eagles.

i'm going home for the big game. >> "mad money" countdown to kickoff, thursday 6:00 p.m. eastern on cnbc. >> boo-yah >> the falcons versus the eagle, thursday on nbc. >> indeed it is the countdown to kickoff. "mad money" is hitting the road, my hometown of philadelphia. i want to see you at the show. join us at the comcast center in center city this thursday starting at 3:45 be part of the action. show is open to the public so come with your questions, and you can be featured in this special edition of "mad money: fly, eagles fly. and it is time time for the "lightning round." >> buy, buy, buy. >> we play this sound -- [ buzzer ] -- and then the "lightning round" is over are you ready, skee-daddy? i start with joe in new jersey joe? >> caller: boo-yah, jimmy. >> boo-yah. >> caller: thanks for taking my call and doing so much for us novice investors. >> i learned too

what's up? >> caller: slb i turned a trade into a losing investment i am down 20%. and i'm wondering if i should -- no, no, don't say it you want to be a buyer of schlumberger, not a seller we came out this afternoon for club members of actionalerts.com don't give up on this. i think it's an opportunity, 3% yield. let's go to ralph in texas, ralph? >> caller: hello, jim. hello from colleyville, texas. what are your thoughts on tom scope holdings. >> a holding company for optics. why not go by cisco? i say that grudgingly because chuck robins is a huge atlantic falcons fan and i'll be seeing him at the big game. let's go to steven in arizona. steven >> caller: boo-yah, jim. i love your show >> thank you. >> caller: get you on tyson foods, tsn >> no, ixnay on ysonthey

i prefer conagra diana in colorado, diana >> caller: hello, jim. i would like to know, i am so addicted to the market here in colorado i know it's a small company, but i wondered what you think. they're so san francisvvy in thr merchandising and customer service. i love them. >> who it is >> sprout. >> you're absolutely right they're the independent after whole foods. i got to tell you, the stores are great. >> buy, buy, buy >> yes you are dead right. let's go to jill in florida. jill >> caller: hi, jim. >> jill. >> caller: i wanted to know, i really love you show. >> thank you. >> caller: i want information on mtn. i love this. >> it is -- i've been recommending this thing literally forever. this is just an absolutely terrific play on basically the

outdoors and experimential economy. and that's what's it going stay. let's go to sulayman from new york sulayman >> caller: jim cramer, big, big, big booia. >> right back at you >> caller: my question is kinder morgan >> these pipeline companies, we need a lot of pipelines to the permean and out of the permean but until we get some and we get more consolidation in this group, ecan't recommend it just can't i want to go to mike in california mike >> caller: hi, jim thanks for taking my question. >> of course. >> caller: on activation lizards? >> my eports are so huge everything is coming their way i think activision blizzard. we sold it for the trust we'd love to buy it back please, take two equally as good. jim in florida. >> caller: good afternoon, cramer my name is -- i have happy belated labor day. i want the know about citigroup

and how do i know what the book value is. >> look, i think they're doing a remarkable job i think they're buying back stock left and right no, it's the cheapest bank stop. my travel trust owns it. and that, ladies and gentlemen, the conclusion of the "lightning round" [ buzzer ] >> the "lightning round" is sponsored by td ameritrade really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. i love you, basement bathroom of solitude, but sometimes you stink. febreze air effects doesn't just mask, it cleans away odors.

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♪ as we come back from labor day weekend, you know what it's time for an apology yes, i owe you an apology. i'm always coming out here telling you if you want to succeed as an investor, you have to have conviction and patience. if you believe in a high quality company, you should be prepared to stick with the stock even when the market turns against it for brief period in time case in point, autodesk. >> [ booing >> i'm booing me don't worry. when we go to the eagles, i won't use that button. here is the copy that is the undisputed king of softwares, used in architecture, manufacturing, even the entertainment industry i love the stock of autodesk i told you it was the best technology company you never heard of i pounded the table on the stock repeatedly >> buy, buy, buy buy, buy, buy! buy, buy, buy! >> which translated into monster earnings growth down the road. similar to what we've seen from other software companies who have done the same thing

how about adobe? the stock was a terrific performer until it wasn't. late last november, the company reported a seemingly disappointment pointing quarter, emphasis on seemingly, and the stock beaten around the head in response, i got nervous yeah, this and i told you autodesk needed to prove itself again. i said this had become a show me stock. i warned you to be cautious. and that by the way was just a huge mistake, which is why i owe both you and the folks who run autodesk an apology. since i lost faith in the stock early last december, it's rallied from $106 to $153. giving anyone who stuck with it a 43% gain i should have stuck by my guns come out here all the time and tell you about stocks i did well in i have no credibility unless i talk about things i did wrong, like telling you i was nervous about autodesk let's unpack everything i did wrong, everything autodesk has done right i recommended last year. i was crystal clear about why i like it. the company sells what some

people think is insanely expensive software it's worth every penny the old licensed base software model can set you back thousands upon thousands of dollars. if you need to design a house or a new car or suspension bridge, there is no replacement for autodesk, none these guys are so dominant in this business that you know what their number one competitor is it isn't another company it's just pirated versions of their own software so they rolled out a new business model rather than charging clients thousands of dollars up-front, autodesk switched to a cloud-based to a sas model like salesforce where they charge you hundreds of dollars a month for the subscription that makes it more affordable to small businesses who may not have thousands of dollars to pay up for a software license in front. but over the long haul, it means autodesk makes more money from each customer. plus, it's hard to pirate software from the cloud. i love this type of model which is why this apology hurts even more

adobe made the exact same transition i got that right their sales and earnings exploded higher. that's why i recommended autodesk a year and a half ago, praising the company to high heaven when they reported a blowout quarter a few months later and pole vaulted up in single session, etook little victory lap on the show. i patted myself on the back, kissed myself, that kind of thing, predicting that wall street would finally start giving this company the kind of credit deserves. i even said you should wait for a pullback to buy on a weakness that was hubris, not because it was wrong, but because when the pullback came, i did not stick to my guns pride goeth after a fall where did i go wrong autodesk did report a clunker of a quarter late last november around the stock had run dramatically, which meant management needed to deliver another blowout. instead they delivered a tiny beat, disappointing guidance everyone freaked out management did slash their full year guidance, lowering the high end of the subscription forecast by about 4%. i got to tell you, where i'm

from, when you do that, if that was all i probably would have stuck wit. but the company also made some moves that i found totally unnerving. autodesk announced a restructuring plan plus they're going to lay off 13% of their workforce typically businesses don't unveil major restructurings when everything is going well of course, autodesk told us that everything was okay, explaining this move was purely about making sure they could keep funding their transition to the cloud. long story short, i got spooked. i still believed in the long-term story, but i told you i had less conviction, and i explicitly warned you against buying it on a weakness as there could be more pain ahead. >> the house of pain [ buzzer ] >> basically, i downgraded autodesk from a buy to a hold after it plunged in a matter of days these are situations where i usually say buy. i didn't that was my first mistake. i knew this transition could be a bumpy ride we saw the same thing with adobe. i allowed myself to be shaken. i was resolved than even during

the first sign of adversity. if i had real conviction, i would have seen the sell-off in autodesk as the buying opportunity it turned out to be. i called it suddenly show me stock. but when the company showed us it was doing great, i didn't circle back. i had plenty of chances to correct myself i should have looked closer. because when you drilled down there, was a lot to like the key here, autodesk annualized recurring revenue, that was the metric. it was hugely important for subscription business, and the stock rocketed higher, up 25% for the year total annualized revenue from subscriptions more than doubled. ceo he told us that the growth rate was actually accelerating yes, accelerated revenue remember why i got spooked the number of new subscriptions seemed to be lower or adding fewer total customers because more clients were switching from individual products to higher value entry

collections. instead of buying separate subscription, they were signing up more expensive company wide subscriptions. so the total number of subs were metric, misleading what we care about is how much money they're making from subscriptionses, and those numbers were fabulous. fast forward to late march management talking about recurring revenue and the market opportunity they have in the construction industry. now the next quarter didn't seem to move the needle, meaning yet i had another chance i did nothing. less than two weeks ago autodesk reported a monster blowout the company earning 19 cents a share. wall street was looking for just 16 cents and that all important annualized recurring revenue number that i wasn't paying attention to was up 28% year-over-year even better, management raised their full year forecast and gave you very bullish guidance for the next quarter just a tsunami of terrific numbers. stocks spiked 15% on the news. while it's pulled back a few bucks from the levels, it's been a remarkable winner. and you know what? as much as i hate to chase, when

you look at the outyears this stock, 12 months end of january '20-'21, the stock only traded 30 times future earnings it's pricey but not absurd bottom line, when you find a fabulous long-term story like autodesk and i come out here and i like to find them and the company seems to hit a speed bump, don't be so quick to give up on it as i did. i let the action in the stock of autodesk discourage me, and i ended up telling you not to take advantage of an amazing opportunity. mea culpa. this is a great company that deserved the benefit of the doubt. i should have never lost conviction given how good the management team is if you get a bit of a pullback here, be a buyer but more importantly, shame on me for getting autodesk so long. please stick with cramer no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up

and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. where in all of this is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you partner with a firm that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it too. morgan stanley.

i thyou never got the brakes looked at?l... oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. i'm ready for thursday are you? i like to say there is always a bull market somewhere. i promise to try to find it for you right here on "mad money." i am jim cramer, and i will 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." ♪ first into the shark tank is jonathan boos with an innovative product line for the well-dressed man. hi, everyone. my name is jonathan boos, and i'm the owner of the men's brand wurkin stiffs,