stop, nio. >> red robin yum. >> that does it for us see you back here at 50.:0 "mad money" start right now. more fast money. "mad money" starts right now with jim cramer. 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 educate and teach you call me at 1-800-743-cnbc. or tweet me @jimcramer. are we too fixated on china? are we too worried about whethe we get a trade deal? over the weekend after a flurry of tweets the president granted the people's republic a stay of execution.

on the tariff increases scheduled to go into effect next month. in response the averages opened strongly then they kind of gave up most of the gains s&p advancing 1.2% i got to wonder are there enough good things happening that we can -- that we can sustain and advance without china? we still don't know if we'll get a deal and don't know when it might happen if we can advance without a trade cease-fire imagine how high we could go if the white house and chinese communist party can reach some kind of accommodation. today we got some solid evidence there is enough good happening away from china to justify sticking with the market in order to enjoy what whear warre buffett said i think we have to do this

individually tallying up the potential ways to win with or without a trade deal so why don't we start with the natural and m & a, merger and ago which signatures and learned that dan her is buying general electric's bio pharma unit for $21 billion. one fell swoop ge took all the concerns about viability and took them off the table. sure, there are still serious problems, the bedraggled power division and long-term care insurance policies they're on the hook for but 21 billion goes a long way towards curing those. bear in mind this is only the biopharma business think heavy medical equipment and x-ray machines with their service revenue streams. what a windfall. especially say compared to an initial public offering is how the old ge would have likely tried to unveil it because it lovedcomplicated difficult to grasp spin-offs

at the same time dan aher gets a fantastic life sciences business additive to their earnings next year, win/win. no wonder both were up ge up 6% this deal tells me when you put china to the side many may be worth a lot more than their stocks are currently selling more roche paid a 120% premium for spark therapeutics with a lot of hope and some hype about curing genetic diseases down the road roche paid more than $4 billion for this and while it's not all that much in the scheme of things it's part of a pattern. eli lilly, glaxosmithkline, novartis have made multibillion dollar acquisitions in the biotech space and companies many left for dead in the fourth quarter. that consolidation is a real

positive for the stock market. it tells us some bioteches may be way too cheap oh, and if that's not enough, don't forget barrick gold who used to run rand goal, you know what, the new one is making a hostile $17.8 billion all stock bid for newmont mining this m & a action is a sign the companies may be more valuable to each other than the stock market itself and to portfolio managers so bearish. however, the situation mays mrout, barrick is my favorite way to play. my second way to win, the financials, they did great today. in particular the big investment banks that had been real dogs of late but there is a reason goldman sachs rallied more and rallied up more than 4 mergers and acquisitions with a stock trading at only a tiny

president trump yum, what you get for the business if you liquidated everything overnight and it has an excellent wealth management group the whole company may be valued too low if we're truly seeing a revival of merger mania because that's a usually profitable business as well as coming deluge of enclose sol ipos doesn't take a lot of people to be in m & a. well, here's something people kind of gave up on for awhile. earnings look, i know the numbers haven't been all that strong this quarter. we've had our share. carter's the child and baby apparel company and the heavy equipment maker, by themselves, i know they don't mean much carter's can't sell a lot of sleepwear without the department stores doing better. in that tense you so what, those represent some real good pin

action then tonight we got a huge pullout from cramer faith etsy for handcrafted merchandise just a massive top and bottom line beat that sent the stock soaring after the close. at the same time tenet health care and hertz reported big upside surprises 3 for 3 plus a good upside surprise tends to have long legs wayfare, the online furniture retailer delivered a terrific revenue beat even though it's still far from profitable today it tacked on another ten bucks for the same quarter the kind of action that g.o.a.t. oriented money managers love to see. the fourth way to win, tech. tech won't quit. i know some of the positive action today came from a combination of klein-related hope and praise for warren buffett. he told becky quick he'd by more apple if the stock fell. any agreement with china will make their businesses for additive, sure but i'm talking about a whole

different group of tech stocks stocks like facebook which got a very serious push from citigroup on the possibility of real expense control. good to see some life out of faang. it's been a real albatross around the neck of a tech rally centered on the cloud kings and semis. the good news, both were able to advance again solidifying their status as market leaders and powered this rally i don't want to give the rally and the international industrials short shrift but that was based on a china deal that said oil climbing endlessly on chinese hopes and got slammed down 2 bucks any other day that might have brought the whole stock market into the red we managed to hang in there. those of us hate the linkage between oil and stock prices how long can it last isn't that what everybody wants to know? i listened to brian sullivan interview a smart guest fretting about how the market was moving up with cash being taken out

every step of the way. nerd, people pulling out of the market to me that's glass half empty thinking i'm going glass half full. if this is how the market does without new money, who the heck knows where it will go with fresh capital? the kind of capital that steps to come in after a large move especially when a big risk gets taken off the table like the trade war with china and boosts it one more time, the bottom line, we got a heck of a lot of ways to win even without a trade deal and we could have way more upside than most people think expect or suspect. phil in new jersey phil >> reporter: boo-yah, dr. cramer how are you? >> i got to tell you, i came back tresch and rested from vacation ready to take your questions. >> caller: i missed you last week cnbc you should have your own podcast saturday and sunday. i have a withdrawal -- >> the only reason i'm

inspirational i got to recharge my batteries now andthen an learned that big time. how can i help >> caller: back in december i purchased fedex. it was starting to go down, bought like the 205 mark and continued to go down further and sh shrinking and two weeks ago announced that the president, coo would step down, can't get above the 190 mark and trying to figure out should i hold this long term. >> please hold it. it is a great american company and take my page from a cue from warren buffett i don't know if this quarter will be that good. really united parcel is doing better i don't want to you sell into the downturn it's had too many good years and there could be another one coming let's go to jimmy in ohio. jimmy. >> caller: jimmy, jimmy, a big baker mayfield cleveland browns boo-yah. >> whoa. wow, i like that spirit. even off-season. what's happening >> caller: what's the end game

with carl icahn? sounds like he's got his hands deep in the cookie jar. >> i have no idea where his hands are. you got a company in las vegas sands, lvs, i mean, this thing, it sells with a 5% yield, 61 bucks. go for quality there are a heck of a lot of ways to win without a china deal and if we get one, who knows where we can go with it? on "mad money" tonight, it's the surprise and service of 2019, the rally that wasn't supposed to be happening is happening the one thing warren buffett can do to save kraft heinz and a company that's helping lowe's, t-mobile and hspc reinvent the customer experience and you may have never heard of. i hadn't until i saw it and rocked on the all-time high smith. stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter

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another rally that wasn't supposed to happen, the surprise insurgency of 2019, why, it's the semiconductors this group had been written off left for dead at the beginning of the year. too many formerly red hot chip makers were in terrible shape but tend of january we ran a segment where the queen predicted they could be on the verge of a breakdown the semis keep going higher and higher without much in the way of support from the analysts the semiconductor rally has its roots in the semiconductor decline earlier.

during the december bear market we saw estimate cut after estimate cut and downgrade after downgrade because of notal sh t shortfalls there was a belief that every singleend market was growing two of the great growth trends had seemed to pause. something hardly anyone saw coming this was like two back-to-back solar eclipses second the semis were caught in the cross fire of the trade war with china between apple's dramatic slowdown and the chinese government's blockage of takeovers. qualcomm and broadcom suddenly switched to buying a software company and that seemed like a fitting coda to the end of the industry that had been driving things and d-rams and than flash, two commodity chips were in freefall. the longest time d-rams finally

joined flash on the way down and haven't been able to find their footing since. that's a serious thing it's dawning on people the sellers may have gotten too negative even when they reported weaker numbers their stocks bounced. it is clear the datacenter is much stronger than the bears believe and if the trade war goes away, the semis are the group to own i think there's a lot of gun jumping going on as buyers try to anticipate a china deal that's how an intel could go up on a weaker quarter. the same goes for nvidia of course, there's no real respite to the decline in the commodity chips. at least their prices. not the prices of the stocks there's an all new reason to buy many of the semiconductor stocks away from the d-ram and flash. five gman comeeth

xilinx seems to have the strongest lineup which is why it's become one of the best of the year there are others that could be swept up skyworks solutions which roared after its latest not so hot quarter and much more upside to come everyone i know keeps waiting for a pullback in the semis. we've been waiting for one you can follow my charitable alerts and you hardly ever get a pullback the weakness is over in the blink of an eye. if there's any sort of china deal, more important the group to buy every time you hear that trade talks might falter simply because the chipmakers have more going for them than china or cell phones but that's only just beginning to dawn on the myriad skeptics stay with cramer

♪ my baloney has a first name it's o-s-c-a-r ♪ >> remember that old jingle? my baloney has a first name, it's k-r-a-f-t my baloney has a second name it's h-e-i-n-z it's full of baloney they had a $15.4 billion write-down of its kraft and oscar mayer brands plus there was an s.e.c. investigation and worst of all abo dividend cut i like to cut these off and see how they hold up pure baloney i could think of more accurate

turn of phrase but george carlin said we can't say those words on television so on friday kraft heinz lost 27% of its value and the stock had it coming. i've been warning you for months the dividend might in danger too many didn't want to believe me ever since kraft and heinz merged in 2015 wall street had let's just say a lot of respect for the combined companies, some might even call it reverence it has an incredible pedigree. heinz was taken private nearly six years ago by 3g. a fantastic brazilian private equity firm and jerk shire hathaway was in there too. can you get a better one when heinz merged with kraft they brought in a 3g guy as the new ceo and wall street loved his ability to slash costs almost as much as they loved buffett owns 27% of the company and used to be on the board of directors though he's still represented by two of his most talented lieutenants

but great blood lines only get you so far we're picking stocks here. we're not picking ponies and now wall street's reverence for kraft heinz has turned into revulsion. eight different downgraded them from buy to hold as they saw it's not working and their earnings for ebita are flat over the past five years when kraft started trading, when heinz kraft started trading as a combined entity it was just at 73 now it's at 34 and change. a 53% decline during a period where the average food stock is down 1% and the s&p 500 is up 34% and those numbers don't even tell the full story. if you listen to the conference call i'm calling it surreal. no point did management relate anything to the writedown even though that cuts to the core issue, use up old brands like

krafts and oscar mayer don't have the relevancy and went on about how it got best in class margins but those have come down dramatically and used to have the best margins by far. now the best buy, bernardo talked about the white space opportunities and terrific new line extensions and distribution gates, sustainable growth and my favorite, their breakthrough innovation it was like he called in freezing rain an alternate universe but, no, they delivered a ten-cent earnings miss off 94-cent basis. full year revenue forecast was 14% lower than wall street expected and they took a meat ax to that dividend wow. that hurts so what's the problem here why can't kraft heinz seem to acknowledge it simple they are a household brand that have lost their reason for being

they've kind of become irrelevant i mean even some of their names are relevant liquid gold. i mean isn't that what they call it in an idex lab? google it. is it possible that to breathe new life into a dying brand, sure, but it's expensive and remember the whole plan was to cut cost you don't make kraft relevant again by spending less money on marketing. hence the need for one of the largest charge, a recognition by management that these brands simply can't bounce back the way heinz expected when they arrived kraft four years ago but that $15.4 billion hit was just from kraft and oscar mayer. what about the other brands? is this the era of jell-o? miracle whip kool-aid stove top. shake and bake do you want to bet on crystal light, cool whip, country time velveeta or maxwell house which is now rumored to be on the block after missing out on the revolution in nonindustrialized

coffee when i hear them i think of one thing, i think about the cuban missile crisis that's how dated they are. growing up my friend frankie had a shelter in his house and stocked with all of these brands because they'd still be edible for ages after a nuclear apocalypse the only thing that wasn't kraft may have been chef boyardee from conagra but nowhere not even in one small nook or cranny does it address their products are mostly pantry brands from the center aisle of the supermarket and young people have a serious aversion millennials are so busy they'd rather buy food that's fresh and organic. at least when they can afford it i think that's a major reason why kraft heinz andthe frozen food producers have so much less pricing power these days as people under 30 only buy it because it's so cheap. the company is up against an unholy trinity they need to spend to support

the brands and raw costs are going up something mentioned repeatedly on the call and consumers are turning against them those glorious positives that management listed to distract us i think kraft heinz can boost sales but by cutting price and rob be peter to pay paul sacrificing earnings on the revenue of earning growth. listen to what buffett had to say. >> they may have made a mistake in terms of working -- i shouldn't say they we may have made a mistake in terms of trying to push hard against certain of the retailers and finding out that we weren't as strong as we thought we were. >> ouch. but, here's a question, if kraft heinz is so troubled why do so many analyst as door the stock going into the quarter one word, unilever

kraft heinz saw it drop 10 points at the time the consensus was this deal could boost earnings by 25% they removed it when buffett with his gigantic position refused to support a hostile takeover the analysts loved the deal of a consolidator on the prowl looking for the next big acquisition and was stunned when kraft behind was rebuffed. many hung on betting there would be another deal now, kraft heinz is doing nothing to quell the takeover talk and haven't had the gall to say they slashed dividend part to raise a war chest but wall street doesn't want to hear it anymore. the company's last big deal was a debacle and can't get their house in order i am glad i warned you to avoid it in november because i feared a dividend cut you know what, i still fear a nasty dividend cut we may not even be done here

the yield is the same. 4.7% but the payout, it's much lower. look, anything can bounce. well, almost anything. but, hey, seriously kraft heinz is a troubled company and unless warren buffett wants to buy the whole thing, i can't think of anything that could turn this story around wow. cut me to the quick. yugo in ohio. >> caller: hello, jim. a buckeye boo-yah to you love your show. >> thank you so much what is going on >> caller: i want to talk to you about mccormick, the spice company. >> sure. >> caller: the stock seems to go up when the market is going down. >> yeah. >> caller: it goes -- i can't figure it out and i wonder how they are are fitting in with the heinz kraft debacle. >> i like the company.

they did that gigantic acquisition of frank's i keep going to my web -- i keep going to my supermarket and look for this label i can't find it but in the end what happened is i think the walmarts of the world crunched their margins. i remember going to grand isle, louisiana, and seeing a bottle of french's mustard, the one that looks very natural organic yellow and it was for a buck well, how do you make money sells must toward for a buck at least they have great grey poupon my favorite brand they have. let's take michael in nebraska michael. >> caller: hey, jim, thanks for taking my call a question about coca-cola wondering if now would be a good time to invest because the recent stock drop, additionally would the stock be good to hold long term considering that last september there were rumors that koeng was exploring cbd infused drinks and the prior year they had talks with aurora cannabis

>> well, they denied point blank that he's interested in cannabis second, the quarter was a disappointment kind of in the penalty box i would not go there the best thing i would go for is warren buffett in there. maybe that's not enough these days 1947 was a good year kraft heinz. it's baloney it doesn't even spell it right and i just got back to italy i can't think of anything that can turn this troubled company around how can conversational congress change the way we interact i'm talking to the ceo of live person could an investment in zendesk offer much needed interest stay with cramer

let me ask you a question. when you use one of those online

chat programs for customer service do you ever get that sense that you're not actually talking to another human being guess what, you probably aren't. how many actual humans handle only service and support that would cost a fortune. more are turning to artificial intelligence and let the machines handle the most commonly asked questions take the aptly named live person lpsn which uses artificial intelligence live person provides what they call conversational commerce and make it possible for businesses to communicate with them via text messages without hiring an army of customer service rep they reported last week it looks really good here the stock surged on the news can it keep climbing a closer look with rob and rob is the founder, chairman and ceo of liveperson. learn more about how his company is doing

welcome to "mad money" and what a great quarter you had. thank you for coming on. >> thanks, jim i appreciate you having me i want to say first of all, 19 years running a public company and so think about being on the show and all the work, my low was 7 cents a share in the 2001 and today we're at our height so it's a great day to be on "mad money" and, you know, share the vision of where this company is going. >> you're very kind. we're thrilled to have you because you got accelerating revenue growth you've got a great story and i want to get right to it. a lot of times we get to -- we go to sites and interact with people who are so smart we can't get it right your artificial intelligence actually isn't just something that substitutes for better but is often better than people. >> when we look at what we're trying to do, the bottom line, we're making phone calls in 2019

and we're on hole and pressing 1 and 2 and 3. we believe you should have a conversation with an automated bot or with a human being and that's powerful like t-mobile and citibank and delta i know you love citibank and john ledger. and i reached out to him they pulled out that voice technology, that press 1 or 2 or 3 called an ivr and we're powering that. my kids won't be calling or messaging but messaging like they message their friends to a brand anticipate that's what we're bringing to these large brands out. >> you got to put a number to it you have 270 billion calls how much does that cost the system, so to speak? >> it's not -- 1.2 trillion right now is running through the global economy for phone calls

a big bank in the u.s. would spend $1 billion to $2 billion taking your phone call you think it sucks but they have to put that -- it's old technology so that 1.2 trillion is sitting there analog voice call that's got to get digitized. e-commerce is 2 trillion and right below that is conversations. and that's what we need. we have to have a conversation as humans to buy things and get customer support you can't go to a website and click around but ask questions and that's what we're powered with our platform with these large brands, even small ones but the large ones is where we're doing the exceptional work. >> i have avenue got to tell you when i first heard about it, wait a second. what happens if alexa comes after you with amazon. but you've hired alex spinelli he ran the development team for alexa, didn't he >> we got a lot of that group joined because because we're

sitting on this gold mine of conversational data, 60 million we generate on our platform. if you're into a.i., that's the data you want to use to power artificial intelligence and bots and interesting thing, you work at amazon working for amazon we're out there powering thousands of brands in the world and alex joined us and a bunch of others because we can take a delta air lines, a t-mobile, you know, a citibank and power "the new york times" and help power these companies into the a.i. revolution and that's what we're doing and why we were getting this great talent. >> so can you go over, for instance, let's junk pick one i didn't think of as having customer service, what do you do for dunkin' brands >> so for dunkin' brands, right now through alexa through a front end we can basically make orders and reorder doughnuts, you can do things -- there's a whole other way to use those front ends to power it more exciting, i know you like

the philadelphia phillies. we're powering a thing called brew to you. from your seat you can actually order a beer through messenger through a bot so you hit a code, message i want a beer, i want a hot dog, you pay with apple pay, instantly it comes to your seat. that's conversational commerce making life easier right there in the stadium and philadelphia phillies >> well, that and bryce harper would make me very, very excited. one last question, when i think about your company, i said why aren't they making a lot of money which you're not yet and your conference call, you look like you have to spend to meet demand and could have margin expansion ultimately. >> yeah, look, we from 2001 have been making money and recently i said we got to bet big this, the demand right now our pipelines have doubled over the last couple of months. every brand in the world is going to want to do it we back in apple business check,

imessage, whatsapp and every brand wants to get connected they need a platfor like ours so the demapped in the market and at mobile world congress i'm talking to the telcos about how do we put an a.i. assistant inside the telephone so you can on a mobile device say i want to buy a car and actually talk to someone about buying a car and buy that car through that device so it's going to be everywhere and we're powering that so, look, we got to spend now and we're about accelerating the growth and i bet long term always with this company and right now we're betting for something very big and that's why i want big into spending right now on sales, on technology, but once again we can make up that margin expansion as we really grow the revenues of the company. >> well, congratulations it's so great that it worked i mean, you've been at it. in the vineyards and toiling and it's all paid off. that's robert locsacio, founder

of liveperson. a pretty darn exciting company "mad money" is back after the break. weekdays, kelly evans connects investors to newsmakers,steres up high-stakes debates and digs behind the numbersstrengthening your strategy on "the exchange. 300 miles an hour, that's where i feel normal. having an annuity tells me my retirement is protected. learn more at retire your risk dot org. you mighyour joints...ng for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory.

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it is time, it's time for "the lightning round." >> buy, buy, buy >> sell, sell, sell. [ buzzer ] >> then "the lightning round" is over are you ready, skee-daddy. time for "the lightning round. mark in wisconsin. mark >> caller: jim, buy, sell or hold on deutsche bank. >> boy, you know, you need a recovery in europe i was over in europe last week i've got to tell you, you're not going to see that as long as china is not doing that well either i'll have to take a pass fred in illinois. >> caller: big-time boo-yah from calumet city, illinois home of the blues brothers what's up. >> looking for your take on trimble inc. >> they're doing good. navid in california.

>> caller: boo-yah. >> how are you doing >> caller: great i want to thank you for everything you've done and i've watched your ever episode of "mad money" back in 2005 and been watching almost every single episode ever since and i actually just graduated from college past december so thanks for all that you do for us. >> oh, man, thank you. you made my day, back from vacation and fresh but nothing like what i just heard what's up? >> caller: i want to ask about the beautiful stock that i've owned since 2018, sarepta. having data tomorrow as long as with earnings -- >> no, this is one where it's such a wild trader, i suggest you just sit on your hands on this one because i do think no matter what happens this is the kind of company that's getting bought out by people it is a good company so sit on your hands to brad in michigan. brad

>> caller: boo-yah, gym. you got me jumping around my office right now. >> i want that >> caller: just want to get your thoughts on foot locker. >> i like foot locker but like nike more. nike has the china angle foot locker is a very good company but i don't want to be in the mall. randy in california. randy. >> caller: hey, boo-yah, jim and thank you for your help from long beach, california. >> thank you >> caller: quick question, i've been building a position in my i.r.a. on cisco the last three months, so i'm up about 13% plus difficult depps on it. where do i go with this now? >> i want to you hold on to it chuck robbins is building a long-term winner here. i think there's multiple years ahead and think that conference call is one of the best this year and i think there's no reason to do anything other than hold tight with cisco so you can buy some more like the travel trust. john in tennessee. john >> caller: honorable james

cramer house of pain with forward guidance is cvs giving you -- >> larry should come on the show that was terrible. okay it was terrible. my bad, i believed, my bad, look, down here it's okay but, gee, it was at 70 when i was away this is a company that should be doing much better and has not really done all it should -- it's done ill advised disclosures and that, ladies and gentlemen, is the conclusion of "the lightning round." >> announcer: "the lightning round" is sponsored by td ameritrade i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade.

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i have a confession to make whenever i see a fantastic stock that's winning without me, hey, like "green book" won last night, i a small part of me dies inside why? i'll tell you why, because i have a bad case of stock market fomo, fear of missing out and missed out on a couple of them fomo is hot a strategy and can be hazardous to your stock health only natural to want to jump on the bandwagon. by the time something red hot comes to your attention there's a good chance the easy money has been made and you've mitted tsse move sometimes you can just keep the

bat on your shoulder and wait for the next pitch stocks are not like pokemon. if you feel like you've got to catch them all you're doing something wrong. you can't catch them all shouldn't even try which brings me to one that i saw when i was out in san francisco recently, saw the signs everywhere basically zendesk. zendesk. yeah, the cloud-based customer relation software company that trades under the symbol zen. there is nothing zen about zendesk's stock which has tripled over the past two years and doubled in the last 12 months 35% gain since the beginning of 2019 regular viewers know i've been a supporter of the cloud stocks especially in the interprize oriented service names like salesforce and service now, workday, splunk and opta when we talk about the cloud kings most fall in this.

we've had any nominal gaphenomet some have -- [ baby crying noises ] >> i gave it my blessing last may but never addressed it and missed a huge move it came public at $9 and the darn thing hit a fresh all-time high today it's up roughly 780% from its ipo price. ♪ hallelujah >> i think part of the reason this flew under the radar after an initial rally out of the gate going up to the high 20s, the tock did next to nothing for the following three years. however, as much as i wish i recommended zendesk in the past that doesn't tell us what to do now. we don't care where they came from so i'll walk through my process for evaluation of a company with a smoking hot stock. i'll make it simple. i think zendesk is a great company with a great story

is it a great stock, though, i don't know i can't really recommend it up here it's running up too far too fast you'd be chasing if you buy it at these levels. plus, there are other companies in the same industry with cheaper stocks like service now and seasforce. i know they seem expensive i think they're safer bets now while we're talking zen and the art of portfolio maintenance, i would absolutely endorse buying zendesk if it got slammed and that can happen but you can't chase it you got to let it come to you. first you need to understand the positives and there are a ton of them zendesk provides cloud based software that help others. we got one of those, right whenever you call in with a problem, their platform makes it easier for the support staff to answer in a timely manner and they've been expanding into new areas including data analytics we know there's tremendous demand for these services.

if companies want to stay relevant they need to embrace digital and do it right making customer support less agonizing. that's a huge plus when it comes to retaining customers after some initial turbulence it caught fire in 2017 as the growth rate stabilized and axle rating some of that simply because this industry is growing like crazy but a lot of it comes down to sales, zendesk fantastic sales and execution. which has been terrific. basically they've transitioned from being dependent on a single product zendesk support to being more diversified with so many different offerings they bundle together and offer as a suite and got an excellent relationship with amazon web service, number one operator in the cloud space. this one got clobbered during the fourth quarter and came roaring back in the new year the latest leg of zendesk rally started a little less than three weeks ago when the company reported a truly blow-out quarter.

they delivered a terrific top and bottom line beat awesome revenue guidance for the next quarter and full year going to the quarter wall street didn't know they could pull that off like sales staff support now it's clear that zendesk has been successful with 41% revenue growth, one of the best we follow it propelled it from 68 to 72 and up to 79 as of today so then why am i so -- if it's so great why am i hesitant to recommend it there is the valuation issue more on that in a second one big thing worries me, they are competing directly against salesforce.com and directly against service now. two titans of the enterprise software space for a chunk of that business. maybe there is enough room for everyone easy to see these rivals become a problem somewhere down the line mostly it has run up so much i feel like a church buying at these levels

you can't value based on earnings, it's barely profitable trading at 120 types next year's earnings symptoms. it doesn't tell you much with so many cloud stocks we need to judge them on a price to sales basis. even there it ain't cheap selling for 8.2 times next year's sales estimates now, i want you to compare that to salesforce. that trieds at 6.5 types next year's sales if you're buying it you're paying a major people couple for its salesforce and slight discount to service now which i regard as best of breed operators. which begs the question, why would you want to buy zendesk over salesforce or service now, it's a smaller company but honestly it's not that much faster service now grew at 30% last quarter. it is a higher risk stock then eerls salesforce or service now and would feel like a dope

recommending it. we've been up for weeks now, weeks. this is not where you come this and start buying here the bottom line, yes, i wish i had spotted zendesk sooner but after the stock's monster run of late i think we need to admit we missed it and got to move that said, zendesk is a great company and if we get a major pullback you have my blessing to bounce >> pounce, pounce, pounce. inviting places with people here to help you, not sell you. and savings and checking accounts with no fees or minimums. because that's how it should be. you can open one from right here or anywhere in 5 minutes. seriously, 5 minutes... this is banking reimagined. what's in your wallet? (butcher) we both know you're not just looking for pork chops. you're searching for something more...

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