extended they have run too far with coonos. >> yoeman's work in mel's absence. >> a privilege and pleasure. >> it has. >> i can't even be inseer. >> i think twitter is going down. >> i tk ooit -- thank you very much thank you very much. "mad money" with jim cramer begins now my mission is simple, to make you money i'm here to level the playing field for all investors. there is 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 not just to entertain but to teach so call me at 1-800-743-cnbc or tweet me @jimcramer. has the stock market totally lost its mind? i mean, when president trump impose as 10% tariff on $200 billion on chinese imports and

china retaliates with tariffs on 60 million of american exports, and our president effectively scuttles any low level trade talks, you'd think stocks would go down, right wrong. [ buzzer ] because the dow roared 185 points today s&p gained .54, and the nasdaq fell to .76% so is this pure craziness, people maybe somebody slipped some cannabis into the water supply on wall street no this move actually makes sense, and i'm going to tell you why so you're not confused, not going to give up, not going walk away. first, while 10% might seem like a pretty steep tariff, until 6:30 p.m. last night, the buzz was it would be 25%. that's why i was so concerned about what's the level, what's the level. in other words, compared to what many people were expecting, it's actually good news 10% is a shot across the bow 25% is a howitzer firing for effectively at beijing and

shanghai the investors who are really worried about this trade war view president trump as unrestrained in his tax war on china. it gives time to talk. the one hitch is if we don't reach a resolution by january, the tariffs will go up to 25%. it gives them an incentive to make a deal, don't you think i think the chinese will come to negotiating table even as you have talking about how china can keep this up for the next 20 years, 2,000 years but regardless what happens going forward, what happened last night is approximately wasn't as bad as many investors were anticipating. so you actually had a reason to buy not 25, but 10 and how about this chinese stock market it's been under tremendous pressure it sent our futures lower simultaneously by the time i woke up at 3:00 a.m., the chinese market had come roaring back plus 1.% moved our futures up too why? a lot of chatter at the

communist party worried about a trade war and economic induced slowdown is putting together a stimulus package to keep their stock market going down, but a stimulus package to keep things moving while they try to preserve their stocks and get them to move up. now china's going to get less investment from america. their government needs to make up the difference. of course, this was also good news for our companies that do lots of business over there, the ones with the most chinese exposure and usual list, usual suspects, united technology, all a great day, boeing fabulous which brings me to my third reason these stocks are constantly being shorted by oh so clever hedge funds who keep assuming they just have to -- these stocks have to blow up, don't they i need to point out that many of these fund managers are kind of paranoid they see systemic risk all over the place where it doesn't risk. every time a country in europe or asia struggling with its currency or finance system, we're talking turkey, greece or cypress, they decide to short stocks every new tariff gets a reason

to bet against the market. of course every time they seem to get it wrong. yet the process seems to repeat itself it's become downright predictable. about day one the hedge funds aggressively short their most hated stocks into the downturn but then on day two so few people are left to sell that the shorts end up losing and they cover that short position, driving the stock ever higher. these professional bears don't seem to understand that we're in a new environment here no not necessarily a better one, but a new one. there is so much money pouring into the market from 401(k)s and iras, from all these people who now have fabulous jobs, right? because the tight labor market and that money pushes stocks higher and it's kind of evergreen money. it keeps come in as long as the buyers are there, it's very hard for the short sellers to win if you're going to short stock, you need someone to panic so they can buy back your stock buy back at a lower level. that's just not happening. every time the short sells end up being overwhelmed by the short seller, not to mention the

buybacks that always are in play fourth, today there was so much positive wall street research that we had a rosy scenario right into the opening why don't we just talk about oracle for a second. last night the software giant reported a quarter that was immediately pronounced weaker than expected. the headline writers declared this thing was dead on arrival listen, quote, oracle cloud spiders high-fives itself over earns. stocks immediately fell two bucks in after hours trading it looks really ugly this morning nary a downgrade. we got some upgrades we had talk of re-acceleration of business. we had chatter the company is setting up for a good second half the analysts praised oracle for the steady cash and strong buyback. if you didn't know back, i don't would think it was about two totally different companies. the stock ended up pretty much unchanged. if you were short oracle you had to cover last night. can you imagine? fifth, ang just refuses to die, my shortened for amazon, netflix

and google google has teamed up renault, and alliance, the basis for vehicle entertainment systems starting in 2021 self-starting cars and entertainment systems are huge for google which whose stock has been acting doggy as of late until today. how they're describing, quote, vehicles sold by the alliance members in many markets will utilize android, the world's most popular operating system and will provide turn by turn navigation with google maps, automotive maps on the play store, and have the ability to answer calls and texts, control media, find information, and manage vehicle functions with voice using the built-in google assistant. guys, that's a bunch of gobbledygook saying listen, this is a gigantic maybe a billion dollar market, maybe more. meanwhile, we found out that amazon is planning to release at least eight new voice-controlled hardware devices by year's end

plus teamed up with ally to install home systems for vehicles then the emmys, one a bunch for the marvelous mrs. mace sell they're spending for high quality consent. it seems to be playing off that's angg. facebook, down again, another number cut what sells new the final positive is apple. last night we left here thinking that the u.s. was going to slap tariffs on the country's accessories made in china. nope got an exemption i cannot stress how important that is because as apple would be able to keep on doing what it's doing, making the best new phones with the best eco trillion stock that gets crushed could really ham their market. it did roar for most of the day. so which of these factors was the most important driver of today's rally? frankly, i'm going to default the number three, okay i think it's the short selling it's become too darn difficult to short this market when i was running my old hedge fund, i always had to have some shorts on, and i'd often have

huge bets against various sectors. it worked for me it worked again during the financial crisis ten years ago however, because of the tidal wave of new money coming in and the incredibly large corporate buybacks which have shrunk the number of shares outstanding, it's just not working right now. the shorts seem almost never to get a break. they don't get the kind of sell-off they're hoping for. instead we got a rally that only became stronger over the course of the session as the shorts realized once again, oh, man, it's not going our way let's just cover the shorts and move on. the bottom line, the glass all full gang can't stop buying. unless there is a specific piece of negative news, a real shortfall, this market isn't delivering the kind of declines that used to make being a short sell sorry darn lucrative. that's why stocks seem to be so resilient, and why the market keeps defying the odds ken in new york, ken >> caller: boo-yah, cramer. >> boo-yah, ken. >> caller: what do you think -- my question is what do you think about first data corporation, fdc. i've seen a few of their new clover machines from small

businesses around me the ceo on cnbc yesterday sounded confident about being able to move into bigger retailers. the stock is up 50% in the past five months. did i miss the boat on this? >>, no it's good i listened to frank yesterday. he was really positive he said on the floor, the ceo, it's a good story charitable trust likes to do some let's go to marvin in new jersey marvin >> caller: boo-yah, jim. this is marvin from jackson, new jersey. >> oh, jackson, i haven't been there in a long time i do love it there i was down there at lbi last weekend. so it know the area well what's up? >> caller: well, macy's has announce they'd plan to hire 80,000 part-time employees for the holidays i have macy's with an average course of $37. what is the short and long-term outlook for macy's and the target price >> well, look, i think macy seas doing well it's still an inexpensive stock. jeff gannett is doing a great job. a yield 5.24%.

i would average down and buy some and then you get a better basis. i think basically they're going to have a good season is how about fred in ohio fred >> caller: hi, jim i'm sending you a happy boo-yah. >> oh, i love it thank you so much. what's up? >> caller: i own shares of fox a. >> okay. >> a potentially complex buyout transaction. >> right >> caller: my problem is that i don't know what dollar amount each share of fox a will bring so, i don't know if i should sell now. >> no, you want to ring the register you don't want this thing to fall through and leave you i don't think it's going to. but we preach not being an charger. we talk about this endlessly this is like annex pi. when qualcomm finally raised its bid. just move on you don't need that -- there is pennies to be made or very little to be made and a lot that could go wrong all right. is the market nuts

no it's actually perfectly sane it's just that the glass all full gang, all full gang can't stop buying because of these reasons. remember, i fingered number three as the reason why we have kind of plunge protection of our own going here on "mad money" tonight, talk about reefer madness i'm going to sit down with the ceo of one of the hotze cannabis stocks you asked for it tilray up over 6%. can the monster continue to move i'm going to take a deep dive into one of the cloud daplays. fintech companies are reaping the rewardses, but could one of your popular favorites, square, sq, continue to dominate i've got the exclusive so stay with cramer. >> don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer, #madtweets

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♪ the reefer rally just continues, continues to go it refuses to stop look at the incredible movement in cannabis cohort today what happened? it's pretty simple tilray, the big canadian producer of medicinal marijuana just got approval from the u.s. drug enforcement agency to be the first company to supply weed for clinical trials in america what makes this more even impressive is tilray's stock was already up more than 600% from the ipo price just a few months ago. who says you can't make money in the stock market i want to approach these red hot ganja stocks with a little caution. it makes it difficult to stay on the sidelines. as far as the business, tilray is in an enviable position they already supplied marijuana for research outside the u.s they started ramping up production to sell the stuff for recreational use too now they're on track to double production to more than 140,000 kilos by the end of next year. one problem.

hate the chase stocks that have already exploded and everything about this stock is explosive. let's dig deep were brendan kennedy, the ceo of tilray find out why the investors are so excited about his company and the amazing opportunity in front it mr. brendan, welcome to "mad money. great to have you. >> thank you >> have a seat. >> the only sanctioned place to have pot until today was the university of mississippi. do you think the dea is loosening up restrictions because this is compassionate use stuff? >> i think so. the dea started to loosen up restrictions back in august 2016, and they said they were going to allow sources of medical cannabis for research from other countries and other places, and today proves that they were willing to follow through with that statement. and so we couldn't be more thrilled to be able to export medical cannabis products from canada to the u.s. for this trial at the university of california >> how big could medical be? >> i think medical could be

somewhere around $100 billion industry globally. if you look at -- i've been doing this for eight years eight years ago there were 15 countries in the world that had legal cannabis today there is about 35. it's really clear how we get from 35 to 40 to 60 over the next year. >> sleeping, pain medication, obvious for people who are hospice. at the same time the drug industry is going fight you tooth and nail, aren't they? >> we announced an agreement with novartis called sandoz. that is for canada co-marketing, codeveloping agreement, and we hope to extend that agreement to other countries around the world. so if you look at large pharmaceutical companies, they have to hedge this cannabis is a substitute for opioids. if you're investigating in pharmaceutical company or you're a pharmaceutical company you have to hedge the offset from cannabis substitution. >> speaking of hedges, constellation brands, rob brands

has a huge position in canopy. should you not welcome the hedge of perhaps a coca-cola, a pepsico, a nestle, someone who needs to be in this segment once things really get rolling? >> i think all the alcohol, all the alcohol companies need to enter this industry. it's a great hedge for them. whether you're an alcohol company for an investor in an alcohol company, it's a global opportunity. our intent is to build a company that dominates part of this $150 billion industry i think you'll see multiple billion companies. well don't want the partner abi. we want to build abi. >> fair enough but you're a $14 billion market cap. today you started at $17 a few months ago it is a gigantic opportunity, and you talk about disrupting the whole industry but you've got far less cash than canopy. they've got $5 billion isn't this the time to strike and raise capital, which by the way there would be nothing wrong if you said yes, we obviously need more capital. >> we obviously need more capital. which we said in our prospectus. the intent is to build a global

economy. we're in 12 countries today on five continents. it's very clear that we'll add additional companies in the coming years and so that requires us to increase our capacity st substantially as we introduce products such as these and medical products around the world. >> well, again, is this not the time to strike when the iron is hot? your company now is larger than 93 companies in the s&p 500, including well-known names like macy's and ralph lauren. there is great opportunity for you to raise money bruce raised money for canopy. you've got the public markets would certainly welcome equity >> definitely. and we're constantly evaluating new source of capital. i think if you're an investor looking for growth, are you going to invest in macy's or a global cannabis company? >> but the ceo of green organ ic dutchmen when i interview "the interview"ed on friday, who is executive for 25 years, he told me i should rein in my enthusiasm of what will happen in canada on october 17th

because the repeal cannabis prohibition will not be as dramatic he is saying it could take a couple of years before things really ramp up how do ufeel >> so medically we'll go from 35 to 40, 50, 60 countries. there is a clear global growth opportunity when it comes to medical cannabis with canada, we're about to see 100% growth. one country to two countries what treats me is countries three, four, five and six, which is coming. i think you'll see the third country within 12 months of october. that's where the real opportunity. it's not about canada. it's about all the countries that follow. >> so therefore you're not concerned. you know all the addition in cannabis, when we saw it happen in oregon, prices went through the floor. it's the cheapest in america you're not concerned with all of the different supply coming on that you could have a considerable collapse even in canadian prices? >> no. it's like valuing abi on the price of wheat. >> okay. >> cannabis is a raw material. it's an ingredient that we use in these branded products. you're not going to see the

commoditization of the finished product in the brands. >> right. >> you'll see price segmentation, value brands, but you won't see commoditization of the brands across the spectrum >> do you think it's going to be alcohol? do you think it's going to be tea? do you think it's going to be coffee, edibles? what is the pecking order you see once we get into a more recreational world >> i think that -- i think more about effect and time the onset. whatever delivery factor is, the form factor, but if you can match a beer where if you and i have a beer, we might feel it within 12 to 15 minutes, that's the important part no one wants to drink a glass of chardonnay and feel it an hour and a half later so you need to increase the time to onset and that's where we're spending all of our r&d time. >> i want to congratulate you on the success of your company. i also want to caution people that you need more money and whether it's a partnership or whether it's equity offering,

it certainly wouldn't be a bad idea it's expensive proposition to be as big a consumer products company you would like to be. >> it is but we're thrilled. >> all right that's brendan kennedy and i've got to tell you, this is the hottest stock in the market right now and you just heard brendan talk about they do need money i'm just trying to be cautious he is the ceo of tilray. what run "mad money" is back after the break. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall.

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create opportunities thanks to the mechanics of the money management business, you can get some amazing gifts here. so a couple of weeks ago i said you need to be prepared to buy some of our favorite growth stocks into weakness specifically, watch out for any weakness in the cloud kings, because the cloud is the hottest secular growth trend in the world. well, guess what we've gotten exactly that kind of pullback in splunk, the analytics play that helps get the most out of data now it's at 116. as far as i'm concerned, that makes the stock a lot more attractive. >> buy, buy, buy >> it's not as though anything has really changed here. splunk reported an amazing quarter last month that caused the stock to explode into the stratosphere now a chance to ring the register and gives a good chance to get in at an incredible, incredible company and really what i think is pretty much a decent discount. why am i so confident about splunk i'm going to tell you wife but we need to start by explaining what this company actually does because i think a lot of people get confused what is this splunk?

cave mining, whatever? splunk is a play on big data according to the analyst who covers it for jeffreys, splunk is the best play on big data there is the business of taking huge quantities of digital information and then mining it, splunk, for insights about everything under the sun but there is a lot of companies that make analytics software why did i name this one a cloud king okay, the vast majority of data out there is what's known as unstructured data, meaning it's not really organized and it's not the kind of thing you can easily plug into an excel spreadsheet. a lot is known as machine data which is a catch-all term that includes all the information generated by the systems running in data centers and by the devices that are part of the internet of things, iot. for a long time, this machine data was viewed as little more than junk, in part because you've got thousands of distinct machine data formats, very hard to compile then splunk comes along with a software platform that takes all this machine data and renders accessible to their clients.

you can use it to diagnosis service problems or to detect security threats or catch fraud or get a better read on what your customers really want and splunk gives you these insights in a format that is easy for anybody to understand, not just a comp psci major. that's the long-term story after generating a lot of excitement the first couple years after it became public in 2012, splunk got crushed it traded sideways from 2015 through late last year why? well, a lot of it had to do with the company made a business model shift. it shifted to a software as a service model, okay. as recently as the summer of last year, you had a bunch of analysts fretting that splunk was botching the transition, and that it would cannibalize their existing business, and that all of this would result in slower billings growth. but i believed in this transition, which is why i've been recommending the stock since it was trading in the 50s and 60 last year remember, this is the same thing that we saw with adobe and

autodesk when they shifted from old-fashioned software mod toll a cloud-based model as a service model. there were speed bumps along the way, but sooner or later that move pays off because embracing the cloud is a better business model. if you started on the cloud like salesforce, you wouldn't even have to worry about the transition ♪ hallelujah sure enough, late last year splunk started reporting extremely positive numbers, and the stock was off to the races there was a little blip in march where investors were concerned about the company's long-term revenue growth but their guidance seemed to be a little tepid but those fears were put to rest the next time splunk reported. then a major decline from 119 down to 96 this had everything to do with the broader sell-off in the fast growing tech stocks. plus, splunk got hit with a downgrade from citi which talked about the company's growth drivers platform plateauing sex to increasing competition. but once again, when splunk

reported in late august, they shot the lights out. [ gunshot they delivered a 3% earnings bait over 5% basis, rising 39% year-over-year billings grew at 35% clip, and the free cash flow more than doubled, up 138% get this the software revenue up 42%. even better, management gave bullish guidance for the next quarter, and they raised their full year revenue forecast as the ceo has been on the show a bunch of times explained on a conference call, if you don't know your data, you don't know your business. i like that. in a world where everybody's going digital, enterprises needed companies like splunk to help them get answers from their data without needing to know the right questions to ask beforehand the quarter was so fabulous that it sent the stock flying from 107 to 123 meanwhile, the analysts seemed to fall in love with splunk overnight, raising price across the board. but there is one analyst whose reaction really stood out to me, and that's don difucci at jeffreys he called splunk, and i'm

quoting here, the best way the play the big data theme, end quote. his long-term thesis is very similar to what i already outlined splunk is the king of helping companies get the most out of their unstructured data. on top of that, it's clear splunk's transition to a subscription-based business model is going better than expect going into this quarter management had been predicting they would soon get 65% of their bookings from renewable software with the number rising to 75% by the 2020 fiscal year but in the latest quarter, renewable software already makes up 72% of the total. most importantly, though, dfucci points out it makes it difficult to get your head around how the business is really going this is something from adobe and autodesk too charging a big licensing fee for software up-front is different than charging a smaller recurring fee for software month after month after month. and that's why he thinks splunk is constantly being underestimated i agree with him you look at the billings, up 35%.

that's a strong number but he says this understates the country's strength because cloud billings are inherently superior to old software license billings when you sign up new cloud business, the billings only show the first installment of multi-year contracts given that splunk now gets the bulk of the business from cloud, he is arguing that the company's new business increased by a lot more than 35%. i think that's a very compelling argument it's one reason i really like the stock here here is the bottom line. when software companies like splunk embrace a software as a service business model, wall street tends to estimate them because people look at the wrong metrics. remember that piece about autodesk the recent pullback is giving you a terrific buying opportunity because i bet splunk has more room to run after a quarter that both explains and cries out for a higher valuation. john in new york, john >> caller: hi, jim great big boo-yah to your and

your action alerts plus staff. >> oh, you're kind thank you very much for joining the club thank you. >> caller: thank you my question is about dropbox, symbol dbx i bought, sold and now bought again currently my basis is $30 for dropbox. it's currently selling around 26 i was wondering if i should increase my stake at this price or plan an exit strategy. >> look, i know this is all because people feel that microsoft has developed a dropbox killer i don't think it's going to kill dropbox. it's not going to turn out to be like a roku, but i don't think you should cut and run i do think that microsoft, the comp te competition is overstated. bill in pennsylvania, bill >> caller: hey, jim. first of all, i want to thank you for canopy growth. >> no problem. >> caller: we already have a double in it. >> yeah, i'm sitting down with them at a conference next month.

i think they're doing a great job. what's up? >> caller: my question tonight, though, is about trade desk, ttd. i have been waiting for a pullback, but over the last few months it has gone up over 50 points and it now has a p/e over 100 and a peg ratio over 5 it is too late to get in >> i'll have to tell you, let me give you the mind-set of "mad money. at 100 after that last quarter, i said i was going to do a piece. i didn't get in ahead the last quarter. was going to do a piece recommending the stock i felt that after that last quarter, i missed it, and then it went up another 40 points roku, trade desk, these are two that i underestimated their power. i do think trade desk is a great company, i can tell you that, but i am not the call. i thought it had gotten too high i was wrong. thanks to the mechanics of the money management business, you're giving an amazing gift here in splunk i think it's the best way to play big data. stock's got more room to run big data is just all encompassing of all things

internet more to come on "mad money," including square, sq this company is up 100% year to date but could the company continue to pay then donald trump ramped up the biggest wave of tariffs yet, and china is already firing back but which country has more to lose i'm giving you my take it might surprise you. and tonight's edition of the "lightning round." so stay with cramer.

♪ lately the financial technology stocks have seemed practically unstoppable. and the hottest stock is square, sq the payment technology company that can turn any smartphone or tablet into a card reader. 150, you heard it. the source of the strength not only is square taking share and taking names in the payment space, they've used the position to become a major business lender, their square capital division given that they actually handle their clients' receipt knowing how much potential buyers are making, square has a real edge on the competition the company has a very popular peer-to-peer payments business over 7 million users phenomenal growth. that's why they were able to deliver a terrific quarter when it reported in august.

and that's why i remain a fan of the stock. kick the tires, make sure the story is still intact. let's check in sarah fryer, who is in town for the code commerce event today, get a better sense of her where her company is headed welcome back to "mad money." good to see you. >> great to see you. >> i have got to tell you, sarah, a lot of companies have good revenue growth, but a $36 billion revenue with 60% growth is the single fastest grower in my universe. how you able the do that >> yeah, and we've accelerated five quarters in a row i'll just add that in. it comes back to staying focused on what we do. so the first thing we looked at this year, omni channel, so make sure we're there every time a seller needs the make a sell, whether they're offline, online, in a marketplace, where ever they are, don't let them miss that sale. the second thing has been continuing to grow our financial services portfolio so cash app as you mentioned, 7 million monthly toews. capital, where we facilitate lending and then payroll

a very young business for us that we would put under that financial services heading and finally international. everything we see here in the u.s. resonates when wie go out around the world lots of work to keep growing those countries. >> when i go, because eown a restaurant i always ask people, what do you use, what do you use and why i hear the same thing over and over again easy to use. that's why i go with square. what's so easy about it? >> so we built it from the beginning to be very what we call elegant so actually not simple, because we wanted it to feel like it was self-serve you don't need someone to call you up you don't need someone to come into your establishment to tell you how to use it. we wanted it to be fast. so whether it's fast to take the actual transaction, so seconds on our newest piece of hardware, or whether it's fast to get your money and get your money next day, which is kind of wowing for the industry, we sped it up to instant. so you can get an instant deposit if you need to it manage

working capital. and finally, in order to build that remarkable product we also went after resilient we want to make sure it's always up, that we're always there for you. >> now jack, jack dorsey, the ceo mentioned this time the first time really played up in all the calls, caviar. before this disclosure, we use caviar. >> thank you >> in bar san miguel, but this thing has turned into a gigantic business >> caviar is one piece of the portfolio. it's definitely doing well grew 100% year-over-year caviar, our strategy there is to be a food ordering platform. so it's different from the delivery companies >> right. >> what we're trying make sure is that when omni channel is happening to a food business, i say that broadly, so someone might walk into your restaurant in bar san miguel to eat, they may want to line up in your restaurant at lunchtime to order their sandwich, but they might also sit on their sofa and just order delivery i like that on friday night. or they might order a pickup, because they're racing the work and they want the pick up their coffee on the go and what we want to make sure

with caviar and with the broader square platform, so as we integrate into things like square for restaurants that a restaurant can now fully serve their customer regardless of where the customer shows up. >> okay. i think that some people might be confused. $36 billion valuation, they're trying to look at it and say earnings per share i look at you as both a subscription business, but more important you're an ecosystem that really dozen compass everybody, including apple you don't have any natural predator or competitors. you're trying to do 360 for small business. >> that's exactly right. it's about the cohesiveness of the eco. when we're able the pull it together in a seamless way we can take data, for example, in payment process, as you pointed thought your intro we know the data of your business with that we're able to do things like underwrite you for square capital to facilitate a loan elsewhere we can take something like time cards. so where someone is clocking in and clocking out, and then we can automate the payroll so everything we do is about how do we save that business time. and you're right no one else has pulled it all

together others talk about integrated this and integrated that but there is no integration that's actually built seamlessly from the get-go. >> we've been big fans of etsy, another big winner another reason why is we are huge fans of empowering small business, empowering people to have their own businesses. when you go to a flea market, when you go to someone trying to make ends meet but has a craft, i always see the square. it's empowerment >> on the wall in the office it says economic empowerment, and it's at the soul of anyone we hire you have to believe that that's why you're here. and it was about really unfolding greenfield so in the beginning, 50% of small businesses are 21 small businesses in the u.s. don't accept cards today, which means they miss out on the sale. i'm at the farmer's market and i want to buy the more expensive item, i might not have the cash in my pocket but of course it's grown from there. so today over 50% on the businesses on square are what we consider larger.

they do more than $125,000 so they're out of the farmer's market they've probably got a bricks and mortar maybe they're just starting online and actually have a large union line business. and our goal is to make sure you never grow out of us, that our products keep getting more sophisticated and more specific to the business that you're building >> when we first met, i was suspicious -- critical i was worried about the loans. your rate of default is far better, even though you're empowering even the tiniest of businesses. >> you're right. 500,000 loans. we've done over $3 billion of total loans facilitated. and we've done that with a default rate of around 4%. and so why it really come downs to the data we collect from payments as you pointed out, we're able to understand what's going across your countertop so we're nderwriting you in advance. it's great for businesses because they actually get something on their dashboard that says hey, we have a loan right here ready for you one click, knits your bank account the next day of course, we're taking capital

more broadly so we're starting to do partnerships we just announced a partnership with ebay about six weeks ago. classic small businesses on the other side who have all that same data that we can use to also facilitate a loan there and then finally we're starting to do some more experimentation around consumer installments from a seller perspective, it's how do i make sure that if i'm selling maybe a higher ticket item like a bridal dress, for example, that i could offer my consumer financing so that she can still make the purchasein safe, sound way, and we feel like we have a lot of data because we sit at that nexus of the buyer and seller. >> that's why the business model is so fabulous that's sarah friar what a stock you just heard why the total investment opportunity is the way you look at the stock. "mad money" is back after the break. hi, i'm joan lunden with a place for mom,

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are you ready, skee-daddy? i'm going to start with jay in minnesota. jay? >> caller: oh, dr. cramer. >> jay, what's up? >> caller: thank you for taking my call. i'm hoping to get your opinion with biogen with the research on alzheimer's drug. >> i didn't like the hype involving their alzheimer's drug i do prefer regeneron, and then i think that amgen is better in my charitable trust >> buy, buy, buy >> amgen has been a winner brandon in florida brandon? >> caller: boo-yah, jim. >> boo-yah >> caller: i love you, man i've been watching you from day one, and i enjoy every moment of it >> well, thank you >> caller: you're the best >> thank you very much >> caller: thank you i have a question at liberty oil field. this company seems to be firing on all cylinders, but the market doesn't seem like it's giving them the credit. so what the deal

>> look, oil service has been a very tough business. i actually would ring the register here there are others that are down so low that i think they're much better buys i need to go to don in alabama don? >> caller: hey, jim. how are you? >> good. how about you, don >> caller: good, good. look, with the holidays coming up and a p/e ratio of about 12, i would like to get your take on spirit airlines. >> okay. i prefer delta more than spirit. i prefer united, continental more than spirit, and luv, the symbol for southwest air remains my favorite. let's go to jaire in california. jaire? >> caller: hey, jim. >> what's going on >> caller: hey, big fan of the show 19-year-old college student here all the way from usc >> nice! my question was about ph.d s >> an amazing quarter, even better than sprouts. i think it's a little too hot,

but it was a great quarter let's go to john in washington you see john. >> caller: hey, jim. thanks for taking my call. hey, my question to you is my interest is in under armour. >> yeah it broke down last week. i made as many calls as i could. i could not find the reason why it broke down. i do prefer nike here. i think nike is going to have a good quarter we did the big piece on van's which is owned by vf vf may be the best shoe company people aren't thick. stefan in north carolina, stefan >> caller: hi, jim boo-yah! >> boo-yah >> caller: i got a question for you about gamestop i've seen it lately. it's been kind of on the rebound. and i know they have a lot of competition from digital media [ buzzer ] >> caller: is this rebound a sign of strength or is there something to it? >> there is a lot of chat they're it's going to be taken over i can not recommend a stock on a takeover basis where the fundamentals are in decline. and that's the case with gamestop

let's go to bob in new jersey. bob? >> caller: boo-yah, jim. thank you for taking my call i'm interested in the entertainment field. how about caesar's >> yeah, i don't like that balance sheet. is f there is no balance sheet for me to like, i cannot recommend the stock. linda in new jersey, linda >> caller: hi, jim boo-yah! >> hey, linda. how are you? >> caller: i'm well, thank you i want to get your thoughts on pk >> i like the refirestone. it's not necessarily my favorite, i like marathon, but it's a good one. and, that ladies and gentlemen, the conclusion of the "lightning round" >> the "lightning round" is sponsored by td ameritrade had a coach in high school. 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.

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who has more to lose people keep asking this question about the trade war with china as though we don't really already know the answer, but we do the chinese have more to lose. how do i know that because the american economy is fundamentally based on consumer spending while the chinese economy is fundamentally based on manufacturing we buy lots of stuff from china. but with the new tariffs, it's easy enough for our companies to start making the same merchandise in other countries vietnam, thailand, even mexico there are plenty of countries that would love to make cheap stuff for the u.s., but what happens when american companies stop building factories in china? that's not very good for their economy. so how come nobody seems to

acknowledge the reality that china has more to lose i think part of it is ideological. many of the pundits really despise president trump. part of it is structural they look at china as an state is that doesn't have to worry about elections and assume they're in a better bargaining position than president trump, especially with the president poised to do badly in the upcoming midterms. but these experts totally misunderstand what's going on here haven't people noticed that trump has no regard for any of the niceties of the american political process? i think except for a close-knit group of advisers who truly hate china than any other country on earth. china exports to the u.s. more than three times the size of the u.s. exports to the china, three times the size they have hundreds of billions more it's arithmetic. the leverage is blocking american companies from doing more business in the people's republic believe me, president trump doesn't mean if our companies do less business in china see probably happy about it. he doesn't care about the earnings per share he is not captured by businesses

that want to do more business in china. new companies know not to go there if they can avoid it now with employment strong, consumers having the best balance sheets perhaps ever, and with businesses flush with cash from lower taxes here, it's easy to avoid china and look, they can't really hurt us without hurting themselves. our companies that sell stuff in china also tend to be big job creators in china. i do wish our government was being more clever in its approach to the trade war. i can't imagine why the president let zte off the hook for many transgressions without extracting anything. i don't know why he still allows chinese companies to raise endless amounts of capital here. china is more capital constrained than most of the pundits realize. they need access to our financial markets and our consumer markets so why not do what the chinese say and hey, listen, if you're going to come public here, you need to have an american joint venture partner that gets 49% of

your profits i don't know why they have not they need our capital markets. not the other way around attend of the day, the united states has the leverage. china doesn't. it's really that simple. you just never hear about it because most the people on wall street are so convinced of laissez faire orthodoxy that they can't imagine a world where trade war ends up being a good thing. but guess what that may be exactly the world we're living in. stick with cramer.

♪ let's talk rate for a few seconds. remember, i said they should raise money in the prospectus. they said that they need more money. so if you're buying right here, maybe you ought to wait to see if they do some sort of offering you'll get a better price. i just don't want anyone to get hurt in a thesis that i do agree. with i like to say there is 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." ♪ who believes she has a new and improved version of a ubiquitous product. ♪ hi, sharks. my name is ivori tennelle, from irvine, california,