difficult. you would this thing at the white pourboard. >> srpt had a big day. i think that stock will break out to the upside. >> that does it for us thanks for watching. see you back here moow atorrt 5 clongz for mor ♪ 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 isn't just to entertain but to teach you call me at 1-800-743-cnbc. or tweet me @jimcramer patience is a virtue when our clear eyed fed chief powell doubled down on patience

in his speech today -- by the way he used the word eight times rather than pushing for more rate hikes the stock market just roared it took off. dow surging 435 points and s&p jumped up. nasdaq folding 2.2%. ♪ powell made the right call, i salute him all day i had to listen to supposed experts whining about how he's caving to the critics or bowing to the stock market and generally undermined the credibility of the federal reserve. i have a word for that, it's called lunacy. the fed doesn't exist in the vacuum powell opted to exercise patience because the last time he got impatient back in october he caused the level of fear and uncertainty that practically brought the credit and equity market to the knees. powell thought he had a good read on the economy so he

proposed four more rate hikes and turned into the one man wrecking crew. that's what happens when the fed is too hasty i know i have been relentless on the issue but i didn't want another -- they know nothing, they know nothing -- moment. in 2007, i urged the fed to start cutting interest rates because they were crushing the economy and they all laughed at me like that scene in "carrie" when john travolta dumped the pig blood all over her they're going to laugh at me i chose not to rely on the anecdotal i think almost shoddy data i insisted powell needed to do more homework and get a better sense of what was occurring because this plan for rate hikes would have strangled the economy. what did he find that i was right the fed was only looking at the employment quote before that they figured at the half the only thing that mattered they didn't seem to care about the slowing growth in china or brexit or the possibility of a government shutdown here in the

u.s. that's okay. today powell expressed a need for caution. he said he's adopting a wait and see approach like we called for endlessly here he explained there's no need to tighten as long as inflation stays this low the truth is the case for higher interest rates has weakened because of the slowdown when he laid out the reckless game plan. in the words of the father of macroeconomics when the facts change change your mind. fortunately, powell changed his mind with it u. now, some would argue that he made a mistake i hate this talk sure, i love higher stock prices but that's not the point and it has never been the point we'll do the show whether the market's up or down. i mean, come on. that's what it's about for me? you think i play for dinner? this is about the economy. who doesn't want a healthy economy? if powell had stuck to the plan

for a series of lockstep rate hikes it would have been a lot more devastation to main street than wall street and there's no good faith argument for the rate hike here. our economy has slowed too, it would be insane for the fed to tighten into weakness. everyone knows you tight into strength not weakness. itted our central bank to be prudent. i'm not saying we need easy money, but just the opposite but sticking to the earlier plan for three more rate hikes would have crushed the current economic expansion i must have spoken to a hundred ceos and all but one agreed with me that the fed was poised to kill the business cycle in a quiz ottic quest to stomp out the inflation. he slowed it down to prevent the inflation from becoming a problem. luckily he took this critique seriously. so let's go over what powell

saw. what changed his mind? every other country is experiencing a downturn and he couldn't ignore it any longer. second, the dollar got so darn strong because of the rate hikes that the american companies were really losing their competitive advantage. more on that later including a big one. third, retail slowed dramatically after black friday, why? it happened after the need for the more rate hikes and the deceleration was stark going into christmas four, some of the recent strength in our economy was simply about companying pushing their orders forward to beat the tariffs that are set to rise from 10% to 25% in future. fifth, housing took a big hit when mortgage rates soared it punches above its way six, we saw the building blocks of the early indicators of a slowdown seventh, the price of oil plummeted in part of the

slowdown in the economy. and eighth, it can go back if nancy pelosi and trump can't reach an agreement and nine, the travel and leisure slowed down. finally, the auto industry can't get any traction at all in part because car loans have gotten more expensive you have a strong labor market okay it's hard to find good employees. but when you see 200,000 people being hired every single month with relatively small increases in raises especially versus the bosses then maybe we have been underestimating the pool of works available. they should go hire adobe or amazon to calculate the labor better so while it's terrific that stocks rallied today that's not why powell chose patience. don't denigrate him like that. think of it as a victory of the prudence of recklessness don't listen to the trade watchers that's denigrating this man. the only thing powell caved to

is reality he didn't want to be the guy who ended the expansion. he didn't want to be the reason we went into the recession, he didn't want to end the cycle i salute chairman powell for not wanting to hurt main street for throwing people out of work needlessly, for not wanting to crush the economy. part of prudence is recognizing if the economy does heat up instead of slackening as it was, he can come back and tighten that's what he'll do i applause that flexibility but the bottom line what matters to me is that powell listened he changed course and he listened in 2007 i screamed and screamed and screamed that main street was about to be eviscerated. i totally failed tv talk show nothing, no one listened this time we headed off a downturn we stopped the end of cycle talk what a win for the american people so thanks, jay. thanks for getting i right from bracing -- embracing common sense and prudence you did the right thing for the american people and it had the added advantage of being the right thing for the stock

market dewey in illinois. >> caller: hi, jim, a long time listener, first time caller. >> excellent >> caller: first, i think to thank you for offering the show as a podcast i haven't missed the show in over five year. >> love. >> caller: my stock is csdj, chegg. i bought the stock after you had the ceo on and then following your advice when it got up 50% i got my original investment out then kind of forgot about the stock. well just recently and again today, it hit a 52 week high and i noticed looking at the position it's up over 750% since i purchased it now, this only makes up about 1% of the portfolio do i keep letting it run - >> you took out the house's money and you let the rest run congratulations to dan rosen swig, he came on the show and he gave you an impassioned plea not

to give up i bought into it because my kids love the product and in part because as i look at the executive producer we thought that was one of the most potent and sincere views that the stock was undervalued. man knew his own company nick in new york nick >> caller: james, booyah i wanted to ask your opinion. >> okay. >> caller: i want to ask your opinion on a stock lockheed martin. >> all right >> caller: okay, i know that lockheed martin has orders of over 400 planes at 35, and i know that also that boeing has reported a strong fourth quarter. where do you think that 616 -- $617 billion of budget for defense is going to go >> well, i have to tell you, lockheed's numbers are so-so i was a little let down, frankly. general dynamics reported just a -- you know what, kind of a number that was awful.

and boeing is in a class by itself the 737 is remarkable. what a great job mullenberg did. i like it. let's go where my daughter lives, alex. >> caller: jim, we have got a question regarding gold corps. i have held it for quite a while. i'm down quite a bit on it they have just been bought out by newmont mines should i turn the stock over >> you want the newmont. we like the rand gold and we're big gold believers here. we think gold is going to 1400, 1500 we suggest that everybody have a little bit of gold in their portfolio. i feel good about that thank you, jerome powell for getting it right hey, listen, when we see people get it right, we change our minds too. on "mad money" tonight one of the biggest football sundays of

the year, domino's drivers will cover 450 round trips from boston to los angeles. i'm talking to the ceo more money, more problems. i'll telling you how the strong dollar is biting into apple's potential and some of the largest companies including fedex and jpmorgan are relying on service to create the change. so i mean, they create change big time if you see what's that's doing let's talk to the ceo after earnings stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. building a better bank

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&. at domino's we love pizza as much as we do. that's why we're giving you pizza reward points. >> from here >> that's right. >> homemade pizza? >> yeah. >> homemade. >> that's better. >> yep you heard that right earlier today domino's announced

a new promotion. you send them any pizza, even pizza bagels, they give you a free pie after six i think it's smart way to promote their artificial intelligence, a i. they reported some international weakness and they got pulverized because the market was not in a forgiving mood but earlier this month they held a good investor day. and it's right where it is right now, and let's check in with ritch allison, the ceo of domino's to learn more about the incredible promotion and where the business is headed welcome back to "mad money." >> hello, jim. >> i'm confused. my wife made 22 pizza pies last night, because she was working the oven are you telling me if i took six pictures i get the kind of pizza i like, which is my tomato pie

>> jim, we are we are going to give piece of the pie reward points for any pizza. so our customers are going to be able to use our great technology to take a picture of any pizza, send it up to us and earn ten points toward a free domino's pizza. >> you're the most technologically advanced company in your industry what is the artificial intelligence going to show >> so the great thing about this is our team got together and created something called the pie identifier and what it does is it uses your phone to look for what they have referred to as the open face expression of crust, sauce and cheese so basically anything that looks like a pizza, you're getting ten points >> all right so let me ask you, you probably have done the work how many people do you think that have not tried a domino's are going to try it because of free pizza is a compelling offer? >> it is a compelling offer, jim. and today, we have got more than

20 million active members of our piece of the pie rewards program. so we don't know the exact number of how many customers will come on board with us, but as the leader in the pizza category we see this as a great opportunity not only to grow the overall pizza category but also to invite new customers in to download our app and to try our product. we feel that when customers try our product, we've got the opportunity to bring them back again and again. >> all right i use my app to order my tomato pie when i'm watching an eagles game i like to watch them at home alone because if we lose i'm miserable. how many people watch the game on sunday and order the pizza because they don't want to miss even the commercials >> jim, it's a huge day for us you know, super bowl sunday we're typically up about 40% over a normal sunday we'll sell about 2 million pizzas answer about 4 million chicken wings. >> does it matter that l.a. is a big market and l.a. is in it >> well, you know, each year

it's the biggest day of the year for us so it tends to not matter which teams are in the game. certainly in individual cities maybe it does but broadly across the u.s. it's a huge day no matter who's playing. >> well, let's talk about your business because it's gotten very, very strong. it was never weak. you had some international issues but it's come right back. the fed today went for prudence, went for patience. they wanted to do the right thing by main street i know that a lot of your franchisees must have been having problem getting workers i know grubhub gets a lot of their workers. are they still able to get the return when they open up a domino's >> they are. opening up a domino's pizza is a terrific return for the franchisees. the cash on cash returns are better than three years in the business and just a few weeks ago at our investor day we

released again our unit level average ebitda for our franchisees in the u.s. and we're expecting it to be $134,000 a unit in the u.s. in ebitda on a domino's pizza store you can open up for 300, $350,000 >> how are they able to get drivers? >> you know, it's a great opportunity, jim driving for domino's because of the volume we do out or our stores in a lot of cases our drivers can earn a lot more than they can for driving for some of the other businesses as we continue to tighten down our territories through our fortressing program it's giving our drivers the opportunity to give -- to get more runs per hour that means more tips per hour and in turn higher wages. and in addition to a job that earns a decent wage, you know,

driving at domino's is an opportunity potentially to be a franchisee in the long term. over 90% started off as drivers or started off as csrs answering the phones in the stores >> but at the same time, ritch, i have to believe that self-driving cars is just a bonanza for domino's. >> well, we have been doing some testing, jim, as i think you know self-driving cars will be here some day we don't exactly know what day but we're working hard to really try to understand how will our customer interface with that car when it pulls up to their curb because they're used to having a uniformed domino's pizza delivery expert bring that pizza to the door so we're learning. so as the technology evolves we'll learn how the customer wants to interact with it. we'll be ready when it gets here. >> one last question, some are saying they have taken on a lot of debt and i say don't worry about the balance sheet. we should feel okay? >> you know, jim, our business

is 97% franchise globally. what that means for us as a low level of operating leverage and very strong and stable cash flow that allows us to put some leverage on the balance sheet. we have been running in that range of three to six times ebitda with our long term debt you know what it's allowed us to do over time is to enhance the returns for our shareholders since 2011, we have returned over $3.5 billion of cash to our shareholders through dividends and repurchases. >> i'm going to bang you on the free pizza, so congratulations on putting up the great numbers. congratulations on the super bowl good to see you, ritch allison you know i have been behind this one for 269 points, plus some dividends. i'm not backing away "mad money" is back after a break. for your heart...

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if you're watching the tape this afternoon, you can see the exact moment when the bulls breathed a collective sigh of relief after the fed day our errant fed chief powell hasn't lost touch with reality as some have worried that was a surprising rare call, from the central banker. the fed is no longer talking about the need for gradual rate hikes. powell said the next move depends entirely on the data which is of course music to my ears since i have been drumming it into his head every day maybe we'll get a rate hike or a cut, maybe no change it all depends on the facts on the ground that's the right way to manage monetary policy. i want to focus on something, something not getting enough attention. especially when it comes to trade and to earnings. it's the dollar.

you know what we keep underestimating the strength of the green back here, the weakness of nearly every other currency under the sun number one they had to cut the estimates this season. and when the fed stops tightening it means that the dollar can go down and at last which is what happened today how much does this matter? yesterday when i got a chance to interview tim cook about the latest quarter i was struck by how we strong when the dollar hurts sales. comes with the territory our ears are like i'm not listening. like the goal of -- in lord of the rings. but a strong dollar is bad news for american companies trying to compete with foreign rivals especially when we're talking about profits with a high price point like iphones what's driving this? we have much more higher interest rates than others and foreign investors want to buy our bonds and they need to buy dollars. while the economy is

decelerating, it's still growing faster than europe our inflation relatively tame. employment, terrific even the u.s. government is stable that's hard to believe for you, but compared to the rest of the world america is the bastion of the world. if you want to know why apple saw a gigantic falloff in the chinese market some is due to lack of subsidies by the chinese some is caused by the brutal competition from huawei and samsung. but a part of the weakness comes down to the fact that the dollar raises the price of the iphone in comparison to the local competitors. i think it's significant enough to account for 3 or 4% of the decline. maybe even more. and when you're dealing with a company like apple that's a huge number they had to cut prices to offset the damage but that hurts the gross margin what they make after the cost as

they're sold the dollar is the great unsung story. we hear that apple can't compete any longer, that it's -- give me a break. the larger issues in china, apple is an iconic american product and the products are more expensive thanks to the amazing run in the dollar. of course it's not just china. the turkish market the weak money cost apple just converting turkish lira to green backs with the weaker economies are eye poppingly bad. it isn't apple's fault yet, that's the crux of the problem. if you're an american company that does a lot of business overseas the strong dollar is the bane of your existence to buy boeing planes in dollars one of the few companies that demands you do that yesterday i was trying to figure out how 3m did i was awash in the currency

translations same with caterpillar, j&j they had huge disfortions because of the strong dollar. currency, then there's currency and there's currency so i'm thrilled that the fed backed way from the earlier plans to raise the rates powell's more patient approach will hopefully let the dollar pull back or at least stop going higher endlessly which is what we need a pause to help our companies get more competitive again. rob in tennessee rob. >> caller: hey, mr. cramer, i'm rob as you said. i'm an undergraduate student at vanderbilt. >> see, we have college kids watches. college kids watch "mad money. what's up? >> caller: they watch "mad money" on hulu thanks for having me on. >> no problem. >> caller: my question is about companies should balance buy backs and dividends and deliver value to shareholders.

so i understand that -- for buying shares back but i have trouble understanding why net buy backs have grown since '08 and net dividends have grown linearly. >> well, some of it is the tax code and some of the problem is with compensation of the ceo's but a stock like apple, let's call it as if it is. if apple offered you a 3% yield it would be up if they did that and it would be a floor on the stock instead of buying it back at 200 which is what they did the last quarter i'm with you, but dividends are out of fashion but it makes all the sense in the world but people are reluctant to buy one share if they can buy ten it another just the way it is. i wish i could advise the companies go into the boardrooms and explain to them the facts of life but they could not care about my view. although jay powell did.

how about ken in georgia >> caller: hi, thank you for your continued great insights. >> i sure try. i try to get as much right as i can. >> caller: several companies recently preannounced their earnings, and caught investors by surprise, and it was not pretty what could be the reasons for the preannouncing? >> well, a lot of it i think with the preannouncement we got for nvidia is because they misjudged their graphical user cards. they said they thought it was going to be a -- an inventory issue because of crip toid, but the gaming slowed down too there was some degradation in the data center. amd did not see that, but they have a much smaller business apple what can i say they say january is better which is unusual from december by the way, i think you're up 17 points if you had watched tim cook when he told us that apple was actually doing well? maybe the 17 points don't mean anything to you. i kind of like it.

all right, the strength of the green back is having an impact on u.s. companies around the world. it is playing havoc more than most people recognize. there's much more "mad money." servicenow -- it's tripled since january of 2017. looks like the move is continuing, i have the ceo after earnings to find out what's going on with that company that we have loved. then the polar vortex might be bad for you and me, but i'm talking to one guy who might not mind it. don't miss my clues with the ceo from american electric power then all your calls rapid fire in tonight's edition of lightning round so stay with cramer ♪ hawaii is the first state in the u.s. to have a hundred percent renewable energy goal. if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution

that lets us collect near real time data on our power grid. ♪ if we can create our own energy, we can take care of this beautiful place that i grew up in. ♪

you want to know why i always talk about the stock market and some kind of -- as being a fashion show because as much as we way want to believe that this business is all about numbers, at the end of the day a lot of the action comes down to which groups are in or out of style take the utilities, the slow and steady safety stocks which have lost some of their shine now that investors are worried about the economy because jay powell is not trying to crush it. american electric power along with a bunch ofs a is sets

reported a good quarter last week aep is one i recommend they have a 3.5% dividend yield and yet it barely budged on the news the group is out of style, that could change though. so let's take a closer look with nick akins, the president and ceo of american electric power to get a better sense of how the company is doing and where it's going. welcome back. >> thank you. >> let's call it, you had a great quarter and a lot has to be your area of the country may have picked up because these kinds of numbers need to be celebrated what are you doing to put up such strong figures? >> a couple of reasons we had a strong weather year obviously last year. but also, for the quarter we continued to see increases in load last year we had the largest increase in energy demand since 2011 so certainly the economy continues to buzz along. albeit it was stronger at the first part of the year than the latter part of the year, but

still it's continuing at a relatively tempered pace. >> i'm so glad you mentioned that because jay powell was -- a lot of people feeling that powell has been hypocritical as a fed chief. he said we'll tighten, we'll tighten and then he said, maybe patience is warranted. he should have done more homework, and speaking to people like you where you did see a deceleration maybe people thought that was the end of the cycle but i feel very buoyant but what he said because i think that maybe you're getting a new lease on life. >> yeah, i think there continues to be advancement of the economy. obviously tariff impacts having an issue at play here and the world energy economy and certainly the strong dollar. but there are portions of the economy that continues very strongly when you look at unemployment in our territory, it's the lowest it's ever been so you're continuing to see job

creation, you are continuing to see the advancement of the economy in many ways and i think it's tempered because of the other items that are going to clarify as we go forward. >> good news i wanted to ask you, look, the weather is in the news you have areas all over the country. you have probably some polar vortex going can you please explain to people how variable weather can actually be good for american electric power >> yeah. so typically, in this kind of weather where it's extremely cold if you don't have wet snow, that kind of issue associated with the weather itself, we'll do very well because obviously, the meters are turning the consumption is there and certainly with the variability of load, we always pattern it during the year we compensate based on what the weather patterns look like, our operations change based on the weather patterns and we're in complete winter operations right now and no one is doing any maintenance or anything at this point because obviously the system is ready to go. we want to make sure it performs

very well for our customers. >> i think it's important to point out that aep is a fantastic historical record on these kind of events you're just a very well run utility. i have been thinking about it and i see a lot of electric cars on the road now. i see tesla putting up some pretty good numbers. at what point do the super charging stations influence what american electric power has to do in terms of new -- let's say new power put on because this is a big and growing trend. >> yeah. it represents channel growth for us in terms of sales to our consumers. certainly we're in the process of working with our regulators to put in charging stations of various -- d.c. fast chargers to really make sure that the any continues to not have that range anxiety associated with some of the electric vehicles. but electric vehicles just passed 1 million units for the year 1 million electric vehicles on the road we anticipate by 2025 there will

be over 18 million you have 20 different models coming out so we believe that this is going to continue to advance. we plan on being part of that along with the storage aspects of it. >> all right how about the flip side? are there people -- are there major companies that are opting out of the system or actually wanting to throw a power back -- because of solar power walmart is very committed to this i wonder whether this is something that you have to worry about, that people will go off the grid other than demanding that you take their power. >> yeah, jim, certainly we have to look at that because our business is becoming more of an optimization business around the infrastructure and our ability for customers to use the various technologies and that's why we look at the channel growth opportunities of electric vehicles of -- of energy storage and other types of analysis we can do relative to the grid itself to not only optimize drive efficiencies but enable the other activities to occur. so we don't have a real issue with certainly customers

utilizing their own supply but certainly we want to make sure it's integrated very well with the grid and contributes to the overall resiliency and reliability of the grid as well. in fact, we have large customers like the amazons, googles, so forth that insist on us providing 100% renewables for example and we're there to deliver that. >> all right one last question. there's a great feel good story that doesn't get told. i like to tell the stories america's largely switched to the light bulbs that don't use nearly as much energy. have you seen the positive accumulated nature of the better, more efficient light bulbs? >> we see it on the commercial size of the things, because industrial continues to go up. residential has gone up. commercial is coming down. i think that's part of the tempering aspects of energy

efficiency and we can further optimize the grid itself on the other hand, certainly we see consumption go down in other areas. it is tempered the regular load growth that we see but that's fine as long as we're not having to spend large capital on large central station generation facilities and are able to optimize into the new technologies and the distributed sources that are available today. >> well, terrific. congratulations on another good quarter. congratulations on your dividends and you keep returning. you know i recommend your stock every time asks about a utility because i like companies that are well run nick akins stick with cramer. for decades banks have been getting away with it. charging you excess fees.

making you wait in line. keeping billions of dollars of your interest. they've been treating you like you're lucky to have them. that's not right. show them who's the boss of your money. you. better is out there. ally. do it right.

>> announcer: lightning round is sponsored by td ameritrade >> it is time, time for the lightning round -- sell sell sell sell -- -- bye-bye bye-bye! and then the lightning round is over are you ready, skee-daddy? why don't we start with johnny in south carolina.

johnny >> caller: mr. cramer, a big carolina booyah to you. >> what's going on >> caller: yes, sir. i'd like to get your thoughts and advice, ford motor company. >> well, they better get it better they're promising me a better 2019 this is what i call a show me stock. how about we go to joe in ohio joe? >> caller: hey, how are you? first majestic silver, symbol a g. >> look, silver is trading up with gold, i prefer gold i prefer to buy barrack. but silver is going higher need to go to phil in new jersey phil >> caller: booyah, dr. cramer. how are you doing? >> doing well. how about you? >> caller: good. i bought pepsico few a weeks ago and then the earnings are coming up and the ceo there resigned.

is this a good stock to own? >> they're doing well. it's a good book of business how about tyler in kansas. >> caller: hey, jim, i wanted to start off with a big kansas city booyah. >> i like that what's up? >> caller: yeah, so the stock i'm calling about, i have purchased this back when it was a big drop around the $14 range and now it's now stable in the $20 area what are your thoughts on horizon pharma >> i don't like specialty pharma i'm going against that one clayton? >> caller: how are you doing it's a great day. >> what's going on >> caller: my stock for you today is pdoc. >> man, i like teledock. they're doing what's right, i

say buy. andrew in maryland >> caller: how are you >> doing well. >> caller: i have a question, please, about campbell soup company. >> okay. campbell's is low risk low reward frankly because i don't think it's worth as much as it used to. they have denigrated the franchise and hurt the balance sheet. that, ladies and gentlemen, is the concsi othlitng und.onf e ghin [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade historic trading mode. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

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look at the stock ofs servicenow i'm telling you to stick with powerful long term themes and that is why servicenow is one of the cloud kings. they allow businesses to make all kinds of processes and back office functions like finance, i.t. requests and it's a classic cloud story. they help other companies save money on labor costs or put a more favorable spin on it. they allow the employees help out more customers servicenow's business is booming. they had a blowout quarter, 13 cent earnings beat and with a higher than expected revenue up 30% year over year building up 38%. so the subscription revenue went up 38% after it went up 5% today it's soaring in after hours trading so let's dig deeper with john donah donahoe. he's the president and ceo of servicenow welcome back to "mad money."

>> thank you, jim. nice to be here. >> john, there are so many superlatives i don't know what to key in on but i think we have to start by letting you tell people how big you are now and how many huge contracts you just won. >> well, jim, we now work with 75 of the fortune 500. 75% of the fortune 500 i should say. so increasingly, the question in large companies and large organizations is not are you using servicenow, it's why aren't you using servicenow? the reason for that is that we're helping companies drive their digital transformations. we're helping them provide better experiences for their employees and their customers. and helping them unlock productivity the power of what a cloud platform can do is just enormous as technology changes of how work happens and we are proud to be in the middle of that. >> all right mr. sluman introduced us to the company. it's been two years now for you.

what are the new verticals you're working on because it seems like that you are now much bigger parts of the enterprise than when frank is running the show. >> what's happening, jim, the history of software is functionally oriented. you had separate hr software from finance and legal software, but that's not how employee and customer experiences happen. they often require a cross functional mindset servicenow is fundamentally a cross functional work flow platform so we help enable great cross function functional experiences and employees don't care if they're dealing with hr or other facilities but they want to get their problems fixed, get the questions answered and that's what servicenow does. >> all right, i think your company like a lot of the cloud kings got the one mission. which is to work harder for the customer can you give me a person's day,

how much time is devoted to not customer function, before servicenow comes in and how much percentage of that clock is now with customer with servicenow? >> yeah, jim let me use an example. one of the things i'm most excited about in 2019 is mobile is coming to the enterprise. we now know how mobile has transformed our lives at home but it's not happening at work we'll be launching this year consumer grade mobile experiences. so that you can have the same benefits of mobile at work so let me give you an example this is a live example that i was using today. let's say you've got a problem at work with your laptop or your printer. there's something that's frustrating you. it used to be you had to call i.t. but now you can take the servicenow application, take a photo of it and with two clicks get it identified using our image recognition and machine learning getting it identified and fixed with -- so getting your issues fixed at work is now as easy as

ordering an uber so all of a sudden, instead of spending hours of frustration and uncertainty you've got -- you're using mobile device to take the administrative, repetitive, frustrating tasks out of you have life so you can focus on doing the things you like, like serving the customers and being your creative best that's what the power of the service platform and servicenow does. >> i think to myself every time i hear you talk, why can't i have this now? it looks like the customer has to be clamoring for the product. i was listening to what you said about take the picture that's what my kids know to do for amex, receipts but this would be unbelievable if i could do that for i.t. >> absolutely. you know, i was blessed to be in the decade i was at ebay, i saw the power of the consumer internet and what mobile did in our lives at home. >> right. >> taking advantage of the capabilities that are built into the phone like the photo capability, like the image

recognition capabilities taking advantage of native capabilities and building applications that are consumer grade and the experience and that hide the complexity from the users. the same way you can buy something with two clicks. you can get your issues answered or fixed at work in the same two clicks we think there's enormous opportunity to transform that and we want on the at the forefront of that mobile experience. >> when i listen to you, i think of fed chief powell today. some people are upset, they think there's inflation. but i'm listening to what you're just talking about, john you're a deflationary force in the world's economy, aren't you? >> well, we helped to drive productivity and you know one of the things -- think about what we do. we automate work flows that's kind of enterprisee's language but it streamlines and automates tasks that weren't automated before and that drives

productivity in addition to great experiences it drives productivity so we see our customers investing in platforms like servicenow to drive productivity and that will continue to, you know, help fuel economic growth. so it's not just a nice to have, but a have to have essential part of digital transformation agenda. >> everyone tells me how bad europe is. i look at your numbers, how did you have an acceleration in europe >> same reason i just mentioned, jim. what's happening is european companies especially in the lower economic growth environment need productivity. and one of the biggest enablers of productivity is technology. and one of the biggest enable earns of productivity within technology is servicenow's platform so european customers are using servicenow to help automate work flows and enable more self-help by their employees and enable more automated experiences which allows them to get more done

with less. so an investment in servicenow provides great return on investment that's fuelling our growth but more importantly it's fuelling the growth because our customers are getting clearer financial benefits and productivity benefits from our platform. >> thank you, you have laid it out very well. congratulations on a simply beautiful quarter. great to see you, sir. >> thank you, jim. >> john donahoe, president and ceo of servicenow. i say something i don't usually do, up 20, it's still right. "mad money" is back after this we're ok. just ok? we got a saying here. if the brakes don't stop it, something will. that's not a real saying. it is around here. i wrote it. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network, according to america's biggest test. now with 5g e.

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