>> canadian. >> it's canada goose gw pharma into next week's earnings release, melissa. >> that does it for us on "fast. we'll see you back here tomorrow "mad money" with jim cramer starts right 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" snow hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you money, because my job is not just to entertain, but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. you know what most of the stocks that have exploded higher this earnings season have in common they had already gone down hard going into the quarter

now, we have seen this over and over and over again, including today's session where the dow dropped 15 points, but the s&p advanced 1% and the nasdaq gained ongain ed 1.37% this time the much derided facebook made a phenomenal comeback general electric returned to double-digits ♪ hallelujah and apple tacked on. this morning it looked like it would be a nasty session, but the strength in these markets helped the market blossom from an ugly duckling to a beautiful swan it's a nice cherry on top of the s&p 500, which by the way gave us its biggest monthly gain in three years, up 5.7% wasn't 2019 supposed to be a bad year facebook rocketed higher attacking on nearly 11 11% gain, which is a really big deal when you're talking about a $432 billion company the turn here, frankly, is

nothing short of astounding. when we last left facebook, it was considered to be road kill the social media titan's obituary had been written over and over again by "the new york times," "the wall street journal," and pretty much every other major publication under the sun. everything but my pennysaver that they keep throwing on the line the endless privacy scandals had done some serious damage, we thought. the last two quarters were downright awful which is why the stock plummeted from 218 in july down to $123 from that fabled christmas eve session. the parade of horrible headlines really seemed like it was hurting the business we've heard of so many people, so many celebrities leaving facebook at the same time the company's costs soared it was a terrible situation. revenues slowing dramatically, costs rising dramatically, and some of the worst press i have ever seen for a company that hasn't killed anyone and what was the fallout i don't know after last night, it's unclear

maybe there wasn't any real daniel done. maybe few people actually cared about these scandals facebook's users are growing smartly. its revenues are screaming high and costs are trending down there. are two billion people who check with the facebook service every day. two billion people where the heck else are the advertiser goings to get that kind of reach? local nooewspapers? national newspapers? cable? i don't think so the company made itself too indispensable, too much of a fabric of your life for us to stay mad at them for long mark zuckerberg told such a convincing story that i wanted to grab the phone and place an ad for the longshoreman, my wife's new restaurant in brooklyn i'm not kidding. that's how fabulous that call was. you end up raisinge ing a metapl

glass to them. it's the most beautiful in the business world, and it's leverage i'm not talking about debt here. i'm talking about operating leverage that's what happens when your costs stay fixed but your revenue soar when you have operating leverage, you can practically print money. and facebook is back in the leverage business. i say back, because i took a look at what the analysts were forecasting for the fourth quarter when they made their estimates last year in 2018. and guess what facebook came very close to making those numbers that is a comeback turns out while facebook may mistreat us and the press made them sound downright abusive, there are two billion masochists who post content to be advertised against and use other service, and those ads are personalized to you, even if you resent the facebook snooping on you. that's why i think the stock still has a lot more upside, even if today's glorious run -- i know this is going to sound

nutty. the stock is cheap that's just one example. yesterday we saw the same kind of action in apple that stock has given us a 13% gain since tim cook came on the though a few weeks ago and told us the future was brighter than people seemed to realize back then cook said he was optimistic about apple's long-term success. i sure hope you listened tim cook is a bankable ceo who is always innovating, and mark my words this, this watch is the next big thing. it's because of the health care initiatives that come with it. remember the last time apple stock melted down in 2016? it trade down to the low 90s which is when cook came here, right here, and he told us the company's best days weren't behind him, like so many of these analysts were talking about. oh, geez, i can't talk to her right now. geez, that would be awful. so many of these analysts were saying the worst day, the worst is ahead, the best was past. sure enough, the stock rallied all the way to $233 where it peaked last year yes, indeed.

guilty, it's pulled back since then but once again cook came on our air before the quarter and practically called the bottom. to me this confirms that you should simply own apple, don't try to trade it. why not? the service revenue stream keeps growing. some people think it re-accelerated most of the growth is coming from china, which is experiencing a nasty slowdown, as we know, and a rise in trade war by a lot of economic nationalism. plus, the strong dollar makes apple's phones even pricier versus the competition but man, president trump can work out trade deal with the chinese? i bet apple could become -- let's just say close to maybe a $200 stock again what else? we may need to replace the g in fang which used to stand for google as in g for general electric today reported a better than expected quarter the new ceo larry culp, smart fellow, he laid out a road map that could get g.e. off the do not resuscitate list and put it in the icu

believe me, that's a major improvement. that's what happens when you take the debt down, which is what he is doing culp didn't talk about big numbers or outyears or make losses and projection. no he is more like hercules he is cleaning out the agean stables. he is tied dig up the justice department investigation subprime transgressions, thank heavens, accelerated the orders in health care to an astounding 7% figure it's going to sell a lot of that too. figured outthou get his arms around the long-term care headache, although you know there could always be another shoe to drop and putting the places on management scheme. when he downsizes power dramatically, we're going to think of g.e. as a nifty industrial get no wonder it rallied at 11%. of course, not every down and outer was able to make a comeback dow dupont got slammed today, plummeting 9%. and this charitable trust name

is already well off its highs. this was the poster child for why fed chief powell had to back away from rate hikes, because many of the industrial got crushed by the slowdown in nevada hbp, hit by powell given the housing related businesses, the blame can be laid largely on the shoulders of the old fed chairman, the one who got a little reckless out of the gate in october. the new patient pal makes me feel like dow dupont is a buy, not a sell down here because the company is breaking itself up. but hbp is a brutal designation, and i didn't like this quarter one bit. frankly, i felt very disappointed in myself -- it's not up to management remember, when i come out and say i like something, that's on me, okay i felt awful that i stuck with this one you got to live with your own mistakes the flip side is when a stock runs up ahead of earnings, it's setting itself for failure unless it's perfect.

amazon had a goliath move going into the quarter and the nitpicks are all over for some weakness some people are going to say numbers should come down oh, i hope the thing comes down so you can get in. paypal did just fine, but the stock came in too high we'll speak to them later in the show microsoft too. it was a fine quarter, but not fine enough given how much it had run. here is the bottom line. expectations are everything during earnings season, and when they've come down into the gutter, well, all it takes are some decent numbers and your stock can explode higher so scour the losers here they may be ready for the comeback of a lifetime the winners, co. boo-yah, jim >> what's up >> caller: first time caller i've owned qualcomm for several years and held through the nxp deal now despite the near 5% dividend, it appears the ftc has joined the rest of the world against qualcomm and its royalties. should i continue to hold to this stock >> i am actually worried about

that stock and let me tell you why. i am worried because they are in a very nasty battle with apple and when i saw the stock go down, even though that the quarter was good, they lost the decision in germany. one more decision in germany, holy cow these guys are rolling the dice. they should go hat in hand and settle with apple. but no, not them so i don't like the risk reward here i'm sorry. i just don't like it let's go to nathan in missouri nathan >> caller: hey, jim. big boo-yah to you. >> very good boo-yah back >> caller: all right so my question is regarding tupperware i've on the other hand tupperware since the big decrease early last year, and with tupperware's fourth quarter over and 2018 behind us, leaving a lot to be desired, do you think the dividend cut, changing of leadership, reinvestment into the company to be able to reshape this company --

>> i'm not going to recommend the stock because the dividend there are too many companies who want to boost the dividend too many companies are doing things right i'm going have to take pass on tupperware i'm always happy to have the company come on, but boy, that was really disappointing and daunting and remind you, that by the way, in the end, these are just pieces of paper. they're not stuff you can live in that's why i always say don't use margin don't borrow money to own stocks okay, look, it's the beautiful game of below expectations if you beat them, you're a winner hey, on "mad money," paypal today. but can growth in the company's venmo business make the stock is a buy? i'm talking with the cfo after earnings and then, is it time to forget about faang and but what does senator elizabeth warren have to say about that i'm speaking with the massachusetts, well let's say firebrand tonight. so stay 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 sometng ado maon.cnbc.com. ♪ 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,

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♪ what the heck just happened to the stock of paypal here is a stock i've liked for ages, ever since it was spun off by ebay in the 30s back in 2015. it has had a remarkable run, but today it got slammed look like it went headfirst into a brick wall problem? last night reporting a mixed quarter. slightly weaker than expected revenue, um 13% year-over-year and even though some parts of the business were red hot like their venmo payment sharing app, the company's forecast for the next quarter was softer than wall street anticipated. the guidance was only a little disappointing for stock, which is owned by my charitable trust which you can follow along by

joining the actionalerts.com club it got slammed today it's down more than $3, or 4% on a pretty good day for the nasdaq i think these numbers were pretty solid and the bull thesis remains intact the stock did just get ahead of itself don't take it from me, though. let's check in with the cfo, not the ceo, but the cfo of paypal, john rainey, to find out more about the quarter and where the company is headed. mr. rainey, welcome back to "mad money. >> hey, jim. it's great to be back on the show >> all right, john look, you guys put up some pretty good numbers, but i know the stock lagged some people thought the guidance was a little light compared to else they were looking for can you tell us what goes into your forward guidance and what else you can say, that maybe this thing isslowing down as a company? >> sure. well, first, jim, we were really pleased with the quarter, and it capped off what was a great 2018 we had 26% eps growth, and we had a record for the number of net new customers that came to our platform in the quarter at

13.8 million really pleased there and we affirmed the guidance that we gave for four-year 2019 that we just provided back in october. but to your point, on the first quarter guidance, there is probably three things that stand out that are impacting us. and in order, ebay is the first. we still have 10% of the volume on our platform, which we as ebay's business. and as ebay has discussed, they're expecting slower growth. so that has an impact on our business the second, like a lot of companies are facing right now is with the stronger dollar, we have foreign currency pressure and with 20% of our business, roughly 20% of our business that is cross-border, that has an impact on us as well and lastly, and somewhat tied to the currency pressure is there are pockets in regions of the world right now where we see slower growth than we did at this point in time last year >> let's go over that top one, ebay there is an outfit i'm pretty familiar with, elliott management they're none too happy with the way ebay has been run.

it does seem that maybe there is a bit of a shake-up. got a couple of divisions, classified, you know that company really well. they've got stub hub and the main business of which frankly it's stagnant. can you get involved to try to make them better >> well, we're actually -- we work with ebay quite closely to try to power ecommerce experiences that help our business, but also help theirs and as i said, there is still a significant part of our business, 10% of our volume today, and we'll remain meaningful over the next couple of years. >> can you join elliott and try to get this thing to go better >> you know, we're very focused on our relationship with them as a partner, and we're going try to do things that are a mutual benefit to our customers. >> okay, fair enough how about venmo? we saw you're starting to monetize it. it seems that people overlooked that because of what you talked about with the currency and ebay disregarding what i think is the beginning of what could be a

monster good revenue stream. >> well, venmo stands out as really one of the shining parts of the quarter and the year for that matter. and you noted it in your opening comments but we saw 80% volume growth in venmo in the quarter and importantly, that's a two-point acceleration from what we saw in the previous quarter part that of is the monthization activities that we see right now. 29% of venmo customers have used it in some way that we're then able to monetize we gave some guidance that when we exited 2017 we were monetizing venmo to the rate of a $200 million run rate annually that's still a very fast growing part of our business we'rer have excited about there. there is instant cash withdrawal there is the ability to pay with venmo at stores, and we have a venmo card now and that's important because it allows the venmo user to use this in an offline physical world. and when we look at the topspin categories of where that's used, there are things like grocery

store, restaurants these are everyday use occurrences which really plays in to what our objective is with venmo and paypal broadly is to become a part of our everyday financial customers' lives. >> there is always people really, they nitpick i heard some people say listen, what the problem is bank of america, zell, the problem is square everybody is coming after them isn't there room for everybody in this? >> well, i do believe that this is not going to be a winner take all game and i also believe that with the secular tailwinds that we see in our business, there is a bit of a tendency of a rising tide lifting all ships. but we're in an excellent competitive position here. we've got over 250 million customers on our platform, operating in 200 markets across the world, and 20 million merchants. it's putting those together, the 250 million plus consumering with the 20 million merchants is really where the paypal value

proposition shines. >> i remember when i spoke with dan shulman. he was talking about everybody who has a cell phone who is in an area where there is not a lot of banking is a potential paypal customer now he talked about two billion. interestingly, facebook talked about two billion people who are on facebook. that your target is that your total adjustable market that would be a pretty great market >> well, the addressable market is enormous, and dan alluded to the two billion people let me put a finer point on that there are by many estimates as many as two billion people in the world that are what we describe as underserved financially. meaning that they don't have access to a checking account, a savings account, even a home mortgage but the unique aspect of those two billion people is roughly 60 to 70% of them have a mobile device and so with that mobile device, we can put a lot of the technology and financial services in the palm of their hands so they don't need to go into a bank branch on a corner

market to access those financial services so that's a big part of what we're after. a lot of people recognize that this is a huge addressable market and we believe that the best way to capture that addressable market is by partnering with the likes of these technology platforms. >> right. >> and major fis to where we can go out and build on our complimentary strengths. >> well, to me it sounds like all systems go and just had the misfortune of a stock that ran right into the quarter and that's what matters to me. that's what really happened. that's john rainey, cfo of paypal thank you so much, john. good to see you. >> thanks a lot, jim >> all right like i said at the top of the show, if it ran into the quarter, and boy did this one ever, you know what? profit-taking. i think that's a pretty darn good story john rainey, cfo of paypal i will stick with it stick with cramer.

♪

maybe it's time to stop focusing so much on faang, the acronym we coined years ago for facebook, amazon, apple, netflix and google even after the terrific runs in apple yesterday and facebook today. these days if you want performance, the cloud kings and their smaller heirs apparent, the cloud princes are where it's at last night's service now report reported a blowout quarter with 30% with growth across the board. this is a cloud software company that automates all sorts of back office stuff so that your employees can spend more time dealing with clients the stocks surged 26 bucks today. perhaps also after the great interview with had with mr. donahoe last night, because that kind of growth is practically unheard of for $34 billion company. unless it happens to be a cloud king based in the cloud. it's also why service has rallied 49% from the lows. when you look at the reaction of the cloud kings and the cloud princes so far this year, they've been trouncing the s&p

500 which is up 7.9% holy cow, these gains are great. it's got some stiff competition. let's go through them from worst to first the weakest cloud king is adobe. i bet they can deliver a woman jam quarter in march to its all-time high of 277 these days adobe the principle engine behind ecommerce. everything seems to run through adobe, and last night ecommerce is growing at three times the rate of brick and mortar the fact that the stock is up only 9% even though it's only run 21%. speaking of opportunities, vmware so far it's only up 10% this year vmware remains the best way to on board to the cloud. the stock reamed more than 37% since the low. oh, and it's also paid a $26 special dividend we own salesforce.com for the charitable trust which you can follow along by joining the actionalerts.com club. i think its 11% gain seems low

compared to the company's 26% growth rate. salesforce is $114 billion company for heaven's sake. that growth rate is stunning for such a large business, but it's kind of business as usual for the cloud. sure, it's seen its stock vault nearly 34%, but i bet it's got more room to run next up, workday it's been winning contracts left and right. and many have come from other slower growing competitors and that as it moves from digitizing human resources to the much bigger financial space of management, financial management and that is i think can really grow in size much quicker than hr the stocks gabed more than 13% for 2019, but i don't know if that's enough. even as it served 54% from its lows then there is splunk to have the misfortune to report smack in the middle of the big downturn last month. no matter, the stock is still up 9% for the year. no one mines data better than splunk sure, it is 49% from the fourth quarter lows, but it never should have gone down there to begin with

hey, how about the last king it? hasn't gone up much at all this year that's because it's red hat, which got a gigantic takeover bid from ibm, of all people. a 63% premium to where it was trading. i think ibm will come out of this one just fine if they can keep red hat ceo jim whitehurst at the top of their gigantic food chain not long after we anointed the cloud kings, we rolled out the cloud princes. how are they doing since 2019, cooper software up 38%. okta is rising 29% atlassians is up 10% why are these cloud stocks doing so well in such a choppy environment? simple they weren't hbp, which i told you told you stands hit by powell these are stories that don't need a strong economy because they help other businesses trim the fat and increase their margins. and businesses always want to cut costs. so when someone says the king is dead, you just come back and say long live the king, unless of

course the king is elvis chuck in massachusetts, chuck? >> caller: boo-yah, this is for chuck from boston. >> here's a kid with horse sense. what's up? >> caller: thanks for taking our call i appreciate it. both long-time fans. francesca is 9 she has been watching. >> 9 and loves the show. fantastic. >> caller: actually she had a little bobblehead. i think one of her first words was boo-yah. >> what happened to my bobblehead i think i smashed it >> caller: my question is looking at the investment securities based, and ate local company here in boston called rapid 7. i'm just wondering your thoughts on that one. >> you and your 9-year-old daughter have skunked me that. is one that you stumped the chump, and i do not know it. i've got to come back and do it. i mean, i looked at rapid 7. it's a boston company because we have the san francisco, we have noem with but we will do the work

wow, 52-week high today. looks like you and she have a winner long live cloud royalty. it's surely alive. hey, much more "mad money" ahead. howard schultz called the plan ridiculous bloomberg compared wilt chaos in vends. what does senator elizabeth warren have to say about the proposal on tax wealthy american and then my exclusive with meritor. is it time to take this off the highway and steer it towards the highway? and rapid-fire, tonight's edition of the "lightning round. so stick with cramer

♪ last friday, we interviewed tim sloan. he is the ceo of welfare, and he talked about the many ways his bank is trying to move past its scandals, become a better corporate citizen. but at least one person in the audience wasn't buying it. senator elizabeth warren of massachusetts, the professor turned consumer advocate turned possible democratic presidential candidate who has become perhaps the biggest critic of welfare in particular and the financial industry in general. warren has ideas including a 2% wealth tax on the ultra rich that's controversial, especially

on wall street now earlier today, we got a chance to speak with senator elizabeth warren, and i'm thrilled any time a presidential contender feels like stopping by the show so take a look senator warren, thank you so much for coming back to "mad money. >> oh, i'm glad to be here >> okay. i want to start with, we had tim sloan on last week, the ceo of wells fargo, and he talked about he feels, and i quote, that he is the right person to run this company, and i believe that, one, because i care deeply about the company. been there for 31 years. i know how the company operates. i have taken responsibility. i don't think you should be criticized for taking responsibility, acknowledging mistakes why is that a bad stance. >> wait a minute explain to me how it he has taken responsibility let me do a quick rundown. let me see if i can remember all the ways he was part of that management team that enacted the policies that caused millions of customers to get cheated on fake accounts let's see. and then there was the scandal over adding car insurance and pet insurance and all kinds of

charges to customers' accounts, putting people into default. oh, and then there was the fact that wells fargo targeted communities of color for the worst mortgages, costing we don't know how many people their homes. let's see, and what else oh, i remember and then there is this latest piece that comes out that wells fargo markets itself to colleges and universities to use their credit card as an exclusive offering to students and wells fargo charges about three times as much as every other bank that's doing the same sort of thing. in other words, wells fargo has had a long-standing policy of scamming, squeezing, and cheating its customers tim sloan has been right at the heart of that, and he wants to keep right on running wells fargo. look, the central problem at

wells fargo is they need a change in culture. i'm not the only one who said that their own relaters have said it. people on the street have said it you don't get a change in culture by having the same guy who had his finger in every single scandal still running the place. >> senator, the outside director report, 110 pages, pretty thorough did indicate that he was not implicated and did not directly have anything to do with the cross-sell. do you think the report was a whitewash? >> so, just do both halves they pick one scandal and say gee, we don't think he was directly implicated. i'm sorry. he was part of the management team this was a massive fraud so whether his participation was simply to cover up his ears or cover up the evidence that he knew what was going on, either way, he should be pitched out. >> now janet yellen, who is a terrific fed chairwoman had a

long, long time to look at this, and she decided to sanction the bank, but she did not feel that mr. sloan should be fired. i wonder if you think that janet yellen, she was the regulator, and jay powell, current regulator, don't do their job here >> look, my view is if you really want to see change when a financial institution, especially one of these giants behaves so badly, so consistently, so many different times, then the time has come, jim, to start holding the executives accountable just imposing a fine on wells fargo, you and i both know who pays for that, the shareholders. >> shareholders. >> right until you start saying you personally, buster, your rear end is now in the crack, we're not going get any change so my view is he should be pushed out because that's the signal that should be sent not only to all the other executives at wells fargo, but the executives of the other

giant financial institutions who, you know, are kind of on the sidelines deciding whether they're going cover their ears next time something looks not quite right in their organization. >> all right fair enough. i have to tell you, senator, you've also been in the news lately about billionaires. >> yes. >> you have said, and i just quote, billionaires like howard schultz and michael bloom better, who by the way thinks your proposal for ultra millionaires is something they would do in venezuela want to keep a rigged system in place that benefits only them and their buddies. howard schultz created an institution that has given -- that's put food on the table for 300,000 people and offered a chance for baristas to go to college. michael bloomberg, i think you have to agree has done more for higher education in terms of trying to get people who are not wealthy into these schools these are two paragons of elizabeth warren's view. >> and that's great. but here's the deal.

they made a bazillion dollars, and now the question is do they have to pay a little portion of that to make sure that we're reinvesting so the next kid gets a chance and the next kid gets a chance and the next kid gets a chance you know, that's basically how the system is supposed to operate. not just because someone gives aw as a matter of charity, but that's part of the obligation. that's part of the social contract that's part of being a citizen of the united states over america. when you make it big, when you get so much from this country, then you got to take a little piece of that and you got to put it back in so that we can build a strong education system pre-k through college for all of our kids so that we can build that infrastructure >> but how about those who have taken the pledge, so to speak, to give half their wealth. should we just perhaps maybe you craft legislation that says that

money should go to make it so more poor people can go to school >> no, come on, jim. you're starting at the wrong end of the deal. the thing about taxes is everybody who is an ultra millionaire has to pay a portion. not just those who sign up not just those who wave their hands and say i'll do it as long as it goes to the particular charity i like. god for them on their charitable works. but every single one of the ultra millionaires, that thinnest 1/10 of 1% slice at the top. they got to take, in my view, 2% that's not unreasonable, to say you're going to put that back into the kitty to reinvest for child care, to reinvest to bring down the student loan debt burden, to reinvest in green new deal, to reinvest in a future for all of america >> okay. so we want to go with michael bloomberg, a man i know you

admire he says when asked about the wealth tax, it's probably unconstitutional and is an example for people favoring radical redistribution it's called venezuela. it almost sounds like you were in a war against so-called oligarchs in russia. i know you're a capitalist i know you're not declaring wars against billionaires how do we reconcile this >> all i can say is we've watched michael bloomberg. we have watched billionaires stand up and say look, i want to run for president, and one of the first planks in my plan is going to be no new taxes for billionaires look, all i'm asking for is a little slice from the tippy, tippy top. a slice that would raise, and that is the shocking part, jim, about $2.75 trillion over the next ten years that's moneywe need so that every kid in this country has a

decent child care opportunity, has an opportunity for pre-k, has an opportunity for a decent school all we're asking is when you make it that big, put something back in, and we're asking for a little fairness in the system. you know that top 1/10 of 1% this year, taxes all in, they're going to pay about 3.2% of their total worth in taxes to help keep everything running around here you know what the 99% is going to pay this year they're going to pay about 7.2% of their wealth. that's more than twice as much what i want is i want these billionaires to stop being freeloaders. i want them to pick up their fair share that's how we make a system that works not just for the rich and the powerful, but works for all of us. >> well, there you go. i want to thank you for coming on thank you for putting the other side to tim sloan, and of course fleshing out your plan, which i know a lot of people do favor. i want to thank you senator

elizabeth warren for coming on "mad money." >> thank you, jim. >> "mad money" is back after the break.

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it is time it's time for the "lightning round. >> buy, buy, buy >> sell, sell, sell! >> buy, buy, buy >> sell, sell, sell! >> and then the "lightning round" is over are you ready, skee-daddy? time for the "lightning round. i'm going start with keith in south carolina keith? >> caller: hey, cramer >> hey, keith. >> caller: i was wondering about groupon and the earnings >> i'll be candid. i like groupon, and have i been wrong. i keep seeing real value here. so i'm not going to desert it. but it has not been a good one let's go to john in new york john >> jim, i'm 69, a long-time listener/believer in you i bought 500 shares of citi corp. in 2008 for a total investment of 79 the stock did a reverse, only 50 shares $2600 value. a brokerage account statement, as long-time ten-year investor,

5300 -- >> all right remember, we only care where something's going, not where it's come from i got to tell you, i think citi is the cheapest of the bank stocks they are going to continue to buy back stock it has been disappointing, but it is inexpensive. i understand let's go to larry, rhode island, please larry? >> caller: hey, dr. cramer. >> hey, larry. >> caller: this is larry from beautiful downtown jamestown, rhode island. >> it is gorgeous there, actually it's near cvs which is down again, it started to kill me what's going on? >> caller: i'm a stock holder in that as well as with most stocks that pay dividends, the dividend rate goes up. the return now over 11% is now the time to buy pei? >> you know, i just saw -- i mean, that's a philadelphia outfit [ buzzer ] joseph came on the show. i got to talk to him again we thought they were through the worst of it, and they don't seem

to be. this is one where he's an honest terrific guy i invited him to come back he can bring the pretzels again they were darn good. let's get the skinny from him. let's to rashna. >> caller: hi, jim i have a question on honda that a buy or a sell >> i'm not recommending any automakers life is too short. it's. >> u.s. too hard i'm in a tent with g.e i hate it when the cfo quits a second time. but they had a decent quarter. but it's a balance sheet issue, and i don't have the faith ted in georgia ted? >> caller: hey, thanks for everything you do, cramer. what do you think about knights transportation >> it was okay i would prefer united parcel after that terrific quarter today. they give you good yield and they're back and they're big and i like them. and that, ladies and gentlemen, is the conclusion of the "lightning round"

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♪ we've gotten a lot of great quarters so far this earnings season, to the point where some of these blowouts aren't getting enough attention we just yawn about them. take mere toitor after rocketing higher in 2017, meritor's stock has been put through the meat grinder last year, even though the company kept delivering excellent

numbers. i think investors were terrified of anything that seemed remotely connected to the auto industry, even though this is much more of a play on trucks, not cars the ceo told anyone who would listen that meritor was in great shape. you know there is a massive shortage of truckers and capacity is needed but even the most bullish of bulls couldn't have predicted the numbers we got earlier this week tuesday meritor delivered a monster earnings beat off a 59% basis, 15% year-over-year, much higher than anticipated. best of all, management raised their earnings guidance substantially. that's why the stock jumped almost 10% yesterday, and it is now up more than 20% year to day. it appears to trade six times earnings that's too cheap let's dig deeper with jay craig. welcome back to "mad money." great to see you seat. jay, i used to teach how to value stocks at goldman sachs a long time ago. i always said there is a company that sells well below the market in terms of its price earnings

multiple, but it is growing well beyond what the market is. >> right. >> and it's got a secular growth story, not necessarily cyclical, with some cyclicalities. it's not real possible it could be a at a certain price. you're at six times earnings it doesn't make sense. i want to explain to people how, but i can't. >> well, i think that message is something we want to make clear. we've grown 20% above our end markets over the last few years. we've grown revenue over a billion dollars, 25% in the last two to three years and over half of that has just been organic growth market share gain >> now trucking business, different from cars, there is tremendous demand. ecommer ecommerce, moving things around. we know from intermodal that there is demand for trucks you're not an auto company. >> we are not. we are entirely commercial vehicle focused supplier leading in our market categories of axles and brakes and the world. >> and then i was thinking okay, maybe it's like wabash national.

but i didn't see those complaints in any of your quarterly debts or anything. >> yeah. wabash, a great customer of ours. >> right. >> but we've done an excellent job of managing those costs. we have a great purchasing team, good contracts that allow us to pass on our base costs such as steel and any rising costs there. >> maybe people think you can't make this great precision instruments in america, but -- >> not true at all our largest engineering center is here just outside detroit, michigan our largest manufacturing facilities are in the southeast in the u.s. in the world >> then you've got secular growth electric vehicle solutions this is something that you're caring about, you're investing in, right? >> uh-huh. we believe we've become one of the leaders in that space so far. so we have a number of programs throughout the globe with every major original equipment manager in the globe to help them

manufacture electric vehicles. i think it's going to happen in certain they're owe niches think of transit buses here in the metropolitan and new york areas. i think those move pretty quickly to fully electric. >> there is an asbestos liability, but it sooemts seems contained. they went after johnson & johnson. the company's stock lost billions of dollars because they targeted j&j is that something that maybe is an issue for people? >> i think it is something to be concerned about for other companies. we just announced a month ago and then reiterated in this quarter, we've eliminated 70% of our net like its in asbestos with a prepackage bankruptcy of a dormant subsidiary that received 100% approval from the plaintiff's bar. >> oh, that's very good. so maybe there is -- maybe i'm missing something. jay powell yesterday talked about things had gotten uncertain in the month of

december i was on a dow dupont call today. they had a terrible december maybe december was bad >> well, i think december had some discontinuity both in the stock market and in some end markets. >> right. >> we even saw truck corridors take a little temporary dip back to our normal levels but i think alzheimer's you see in january, the economy and industry has come roaring back with confidence. >> so what is the narrative that you tell people? you have a terrific piece in it's called perception impacting meritor's valuation. do you eventually say you know what we're just going to buy back all the company because maybe people won't understand >> well we are aggressively investing in us with buybacks. and as you read in our first quarter, we bought back 50 million of our shares when we saw that disconnection in the equity markets in december we jumped in and took advantage of that. but i think there are misconception, but understandable we're a 110-year-old company, and have gone underneath a very strong repositioning and restructuring of the company in the last five years. >> well, rook, all i can say is

keep doing what you're doing eventually, as i said when i was teaching at goldman, it has to work out. >> that's what we believe strongly, the board and myself. >> it has. to thank you so much that's jay craig, the president of meritor even after a blowout quarter and up 20% for the year, this stock is crazy cheap stick with cramer.

i'm going to follow up on facebook not necessary by that amazon is not good, because amazon is fine but facebook was down so much, and it's impossible for a stock to go up, say, 30 points but you know what? that might happen. why? because this was the quarter that people were looking for a long time ago. it just took a two-quarter detour down as the publicity got to so many people. i think the worst is over. i always like to say there is a bull market somewhere. i promise to try to find it for you right here on "mad money." i'm jim cramer, and i'll see you tomorrow

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