>> draft tomorrow! power lunch at 2:00. >> on the ocho >> and the balcony. >> and the sell-off. too much all right. that does it for us. meantime, don't go anywhere "mad "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'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 educate but to entertain and teach s call me at 1-800-743-cnbc. or tweet me @jimcramer if you wait for a green light to start buying stocks you'll end

up waiting too darn long let's say the bell does go off, the signal has sounded you get the all clear. the problem is the bell always goes off way too late. the signal blasts after the fact and the all clear just tells you that the easy money has already been made. on a day like this when we have many cross currents dow dipping 59 points, s&p declining 2.2%. it's time. i want to spend some time explaining why you cannot wait for the bell to go off for many this is the most mystifying part so listen up the notion that the biggest opportunities come long before the bell gets rung, the siren sings and the clocks blair, whatever else you're waiting for before you pull the trigger is exactly what "mad money" wants to teach tonight exhibit a, texas instruments

which reported last night. i'd like to think i know more about the semiconductor business than anyone else in the business when i was studying for the new york bar exam i stayed in westport, connecticut. every day i'd commute to grand central station to cram classes for the test there was a merrill lynch quote machine right on the floor there and it was not too far away from a pay phone and always jonesing trying to find a good entry point in the stock of this company that popularized basic semiconductors 35 years ago this is what i found out. the stock seems totally divorced from the company if you only looked at the company it was very much a feast or famine operation but the stock never reacted to the feast. when i used to trade out of my dorm i'd get my head bashed in by texas instrument stock because i kept hearing all those great things about it. what did i do? >> buy, buy, buy >> i went to harvard business school and would read reports

and told me it was in the sweet spot so i'd figure the coast is clear. then the stock would go down and i would feel like a total dope i couldn't figure out what i was doing wrong. so i did some digging. i looked at the history to see when the stock would make its biggest moves. i wanted to know the best time to buy the stock of texas instruments. the answer, a couple of quarters into a downturn. you had to pounce when things were at their most ugly. you had to buy into the famine for me that meant buying call options out three months if you're checking with that quote machine, it used to drive people crazy i'd hit and it was down, i'd run to the phone booth and buy five more calls but my darn strategy worked and i ended up paying for my share of that summer house in connecticut with the profits from texas instrument calls. i bring this up because when it

reported last night they talked about how they expected to experience two quarters of declines and, according to management it usually takes four or five before the cycle turns when we saw the headline number which looked so good it popped 6 bucks in after-hours trading but one cfo came on the conference call and told you it was too soon for him to give the all clear signal because of that bottoming cadence i just mentioned, texas instruments gave up every penny of those gains and then some. this morning the stock opened down a buck and a change i railed against this. see, to me, this was the seminal grand "station 19" moment. i set it on "squawk on the street." if you wait for the cycle to actually turn you will be way too late yet, lots of people are degrees spate for verification so dumped the stock when they didn't get it a huge mistake the executives aren't trying to help you time the semiconductor cycle for heaven's sake. they're just trying to run the business and that's a very different thing.

while the stock rebounded to close up two bucks so i was kind of right i still think it's a steal and talk about the need to be ahead, lam research told you last quarter a bottom could be in hand for semiconductor equipment. it crushed the numbers tonight rewarding the bold beyond what most stocks are doing this very evening. >> that was easy. >> we see this kind of thing all the time look at apple. nearly 60 points ago tim cook was telling us the best days were still ahead but they preannounced hideous numbers and were involved in a major lawsuit with qualcomm over royalties we didn't know how that would play out we just knew apple couldn't afford to be late for the next rollout of 5g whichis the next generation of wireless technology because it wants to do right by its installed base while people fret the they forgot they didn't have a 5g game without qualcomm's chips. when the two reached a settlement last week qualcomm's

stock exploded higher but apple rallied 7 bucks. if you waited until after the settlement you missed some incredible moves the big money was made before you got the all clear. a memo to qualcomm, apple is one of your best partners and take the more magazine namm news approach no need for the trash talk this isn't barstool. all right. how about disney ceo bob iger spent months explaining how amazing disney's new offerings would be now that it acquired entertainment assets that's why i've been pushing it. when disney showed white house it would look like it jumped from 116 bucks to $135 once again, you were better off buying it before management gave you the green light as opposed to waiting for to buy disney and there's chipotle after all those nasty health scares some thought it would never bounce back. au contraire we knew it takes about 18 months

for the american people to forget what went wrong and after that you're home free. you're now up more than 300 points if you waited for the same-store sales to turn, you missed out. we'll sit down with brian niccol at 9:30 on "squawk on the street." finally there's facebook facebook facebook lots of people kept waiting for the disturbing revelations to end. waiting for the resolution of its battle with the ftc. you had to get in front of that, though and both of those because the numbers tonight talking about 26% revenue growth and they reserved 3 billion for the ftc inquiry and could have reserved 30. you left 50 points on the table if you waited for the ftc inquiry and you waited for them to stop saying that they didn't sell your name to whoever they said they didn't sell it to. of course it's possible to be too early. i keep waiting for the guy on

general electric to sound the all clear. gets krikoria get crickets on that the early bird gets the worm in this case the early bird is the one who knows you need to buy a stock before the underlying business turns around the other birds are still cowering in their nests waiting for the call they will always lead them late for dinner. aaron in michigan. aaron. >> caller: hi, jim thanks for taking my call. >> aaron, it's my great pleasure. >> caller: regarding sleep number, snbr, i've had the stock quite a while. i'm up about 300%. >> wow. >> caller: yeah, i've had it for several years. they released results last week. they met and surpassed earnings expectations and they reiterated prior former guidance. they did miss revenue, microscopically, 2 million on

425 million and the stock -- yet the stock sold off 20% immediately and another 5% or so since. i was somewhat surprised and intrigued by this. so, my question is, do the algorithms regardless of the type or magnitude of miss? that's kind of -- >> it's only a billion dollar stock. and candidly we have to realize this has been a competitive industry i'm surprised they did as well as they did and it's come down you know, candidly i don't really care for sleep so it's not my strong point but we'll dig down on sleep number i may even have to try sleep just to see what is so great about it just get a little feel my hands -- like a field trip but we'll do more on it and come back let's go to charles in maryland. >> caller: good afternoon. thanks for taking my call and assisting the 99% of us. i wanted to ask you a question

regarding intel and its effect, recent settlement of qualcomm and apple, what is the effect going to be on the stock itself and looking at it short term as well as long term and qualcomm seems to be going through a 5g intel does not what are your thoughts to remove bill more updated semiconductor stock? >> here's what i'm learning about intel. i think bob swan is doing a pretty darned good job i questioned him because he was the cfo that moved right in and i think has done a great job and made it so that the company is in the right markets, is spending less money, good balance sheet, good yield. 12 times earnings. and, therefore, even when it says i'm not going to make the modems for billions in order to please apple it's a good stock it's probably not done going higher can i get a bruce here. >> caller: hey, i bought all three of my 20 something kids your get rich carefully book for christmas.

>> thank you [ applause ] >> caller: so you recently said these young investors might be able to take more risks and you use biotech investments as an example. my question is, should they invest in a company like rite aid? >> ooh, my 4-year-old used to say, ouchy the problem there is that the balance sheet is not that good i've got to tell you if the balance sheet were good it would be interesting but we can't bet on future when balance sheet bad now. i need to go, wow, i mean, this show is all over the map we go to john in montana john >> reporter: how are you doing, jim? >> caller: i'm good. my question is about at&t. i took advantage of the time warner fiasco and actually doubled down when it hit an all-time low around 28 and change a few months back. so i'm not in that bad of a position but i'm just wondering if you think it will ever, ever getout of this $30 a share -- >> john, john, let me tell you,

the cash flow is good. the cash flow is better, everything else worse than expected which is why it is literally a stock that i don't think is going to do very much at all i like verizon more. by the way, i like t-mobile even more john ledger is something, i heard him sing at the garden, wong guy i think he's terrific. listen, the early and intuitive -- this is like, you know, like recode, the early and intuitive bird gets the worm it's cramer's bottom line. is this -- i mean, come on i mean, and this is like kind of like chutes and ladders. we had hasbro on last night. this is killer all right, on "mad money" tonight, tresch out of the oven i'm slicing up domino's earnings you bet i am then earnings season is in full swing and expectations are being soundly beat

why? i'll explain zoro shares, the economy is sticking around. could it be a prime buying opportunity? i'm talking with the ceo so 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 mail at madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something, head to madmoney.cnbc.com. what's a target date fund? 529 plan? a 10-k? what's an etf? an ipo? 401(k)? where do i start?

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>> announcer: the stock is heating up and investors are placing their orders for domino's as technology changes the delivery game can this pizza pioneer make a seamless transition to the digital age and cook the competition i've said it before, i'll say it again, do not give up on great companies just because they hit a speed bump. just look at domino's.

when domino's reported a not so hot quarter it got obliterated trading down to $239 a month ago as everybody started worrying they couldn't deliver now that the longtime ceo retired come on. that was the moment to buy the stock, not sell it this recent weeks domino's has taken off thanks in part to the analysts who keep pointing out it had gotten too cheap to ignore and reported a mixed quarter yet pole vaulted a higher number. while they came in weaker than expected and total revenue was a little soft, domino's had excellent margins. when you factor in the impact of their huge buyback, they were able to deliver a 11-cent beat that was aenough to reassure the bulls and it was off to the races rebounding to $283 as the comeback for real? let's check in with rich alison, the ceo of domino's pizza to hear more about the quarter and his vision for the future. welcome back to "mad money." >> hi, jim, great to be with you

again. >> rich, i was a little worried when i saw the same-store sales but could not believe how much money you could be making in this environment with the same-store sales number. how was the cadence of the quarter? just starting to gain a lot of steam right now? >> yeah, jim, we're continuing to see terrific momentum in our business, you know, in the first quarter, our global retail sales grew 8.5% when you adjust i had for currency, tipping to see, you know, terrific profitability on the part of our franchisees and excited about it how many stores do you need? >> you just opened your 16,000th store. i'm a domino's user and do you need another 5,000 stores? >> jim, we need a lot more stores when we take a look at our business, and we look out toward 2025, you know, we see a business that could have 25,000

stores, about 8,000 of those in the united states and the rest outside. and it's all part of our strategy to fortress the markets we operate in which brings a lot of benefits. you know, gets us closer to the customer so our service improve, lower the cost of that delivery as we're driving fewer miles and also frankly improves the wages for our drivers because they're getting more delivery runs per hour >> well, that's important because i was going to ask how do you keep your drivers given the fact we've had almost all the companies that deliver and they all say the same thing it's a mad scramble to get employees. i guess because of the way that you work you pay more than everybody else >> you know, jim, we do. when our stores are busy, our drivers are making a lot of money and the other thing that comes along with it with domino's that you don't get in some of these other businesses is that there's a path to becoming a small business owner. even a large business owner inside the domino's system

90 plus percent of our franchisees in the united states started off as drivers are answering the phones in our stores, it'ss? a great way to build a business and build wealth over time for folks that are willing to go after it. >> are there master franchisees who started as delivery people master -- >> there sure are. some of our largest master franchisees started off delivering pizza don may, our sea, master franchisee base runs a business with 2500 domino's pizza stores. >> i wish more people knew this kind of thing. i know we talked about it with mr. doyle before if you didn't go to stanford business or didn't code, you know what, you've been left behind these people, not only have not been left behind but i bet you they have a good technology background by the time they finish working as a delivery person at domino's >> absolutely. you know, technology is such an

important part of our business, jim. you know, through and through from the consumer interface, now coming all the way back through the stores and out in the hands of our driver, it is really permeating every part of our business >> now, you launched when you were here last a program, it was a taking pictures of pizza, any pizza, uploading them to the domino's app and the more that get it the better. how successful was it and how is the rewards program doing? >> jim, we're pleased with our points for pies program. you know, it's helping us deliver on some of our important objectives, we wanted to get our app downloaded on more consumers' phones and that's happened we wanted more enrollments into our loyalty program and that's happened and now we're starting to see some of those new enrollees ordering and ordering again and in addition to all of that, it's given us some really interesting intelligence about where else our consumers go to buy their pizza. so our customers don't eat all

of their pizza at domino's we want to eat as much as possible but they go other places and know a lot more about that. >> is it helping to take share -- you've got a bunch of competitors. is that still continuing >> absolutely, jim you know, in the first quarter in the u.s., our retail sales grew 7.9%. you know, that's in a category that grows at very low single digits so we're continuing to take a significant amount of market share. >> you talk about a term in the conference call. fortressing impact because you're worried -- some analysts are worried about aggressive promotional activity by third party ago kist weighed on the comp talk about for tressing delivery and what it means to make it so that you guys, you have a moat versus everybody else. >> if we want to win for the long term and we sure do we've got to do a couple of things really well, number one, we've got to provide great service and

consistent service to our customers. and, number two, we've got to be the lowest cost delivery provider out there this for tressing strategy really works on both of those dimensions as we tighten those delivery areas down from our historic nine-minute or so drive types down to five or six minutes, it shortens the time to get to the customer, instead of getting there in 30 minutes we can get in 25 or 20 or 15 and 16 minutes and then secondly the more rungs that we get per hour, it just improves the economics of each of those delivery orders because in some of the high wake labor markets today it is really difficult to take $20 of food nine minutes away from your location and make money on that order. we have to bring these at this times down tighter to accomplish our objectives and to protect ourselves against this new ee merlining set of competitors. >> it is absolutely working. i'm so glad that the numbers are back

i think that it's always been the best business model. ritch, you're doing a fabulous job. let the bears keep trying to knock it down. much more after the break. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated.

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carbon capture is important technology - and experts agree. that's why we're working on ways to improve it. so plants... can be a little more... like plants. ♪ at the beginning of the year, like clockwork the analysts scrambled to raise their estimates for the coming 12 months and that gets money managers pumped for the rest of the year >> buy, buy, buy buy, buy, buy. >> these are the kind of analysts that like to upgrade stocks going higher and downgrade the ones that are going lower and always want to start the new year off with a bang but not this year. this year they held their tongues. except they cut their price targets. because 2018 ended so poorly rather than trying to put a

positive spin on it they dispensed with bullishness and stayed in their foxholes terrified even to peak out, put their heads up and try to even imagine a brighter future. now, we're seeing the fruit and wages of that fear as company after company beats these expectations that were set down months ago when it felt like the sky was falling and keep topping those because they were never raised to begin with they would have been at the start of any other year. many assume the first quarter numbers would be nasty the fed trashed the economy in the fourth quarter and the white house kept he skah lath its trade war with china many companies are turning in truly better than expected quarters including this very evening where i see one after another after another. ♪ hallelujah >> so many companies are singing

the same tune, it goes like this let's go over what's happening, all right, so you have a good view first, free cash flow. incredibly important and strong. that's allowed them to buy ee norm quantities of stock what happens you boost the earnings per share. while china was a real worry, do you know it's one of the strong points for 2019. anyone who does business there saw an optic from nike to united technology check out otis, the trade war doesn't seem to matter the people's republic has gone from an unsurprising negative to a shocking positive in three short months who would have thunk it? they're still reaping the benefits from strong employment yet it's not too strong meaning it's not producing too much wage inflation. you can argue whether it's good for the country but it's definitely good for the stock market fourth this one is important. finally dawning on many money managers that transportation costs have peaked. have i told you how many times it would happen this year what

we haven't seen is the peak of prices paid by consumers and companies keep raising prices because the economy is in good shape. what do we call that margin expansion last but not least, many portfolio managers were betting we woulden hit by three hikes. jeremy powe powell started talking about a pause. many believe a rate cut might be likely as long as that's a possibility mistake to leave too much cash sitting on the sidelines. they're flirting with all-new highs. fabulous run since the beginning of the year because this situation is a whole lot better. when it seemed like the fed was about to tighten multiple times and earnings would be falling off a cliff and the trade war with china was running hot, it made a lot of sense for money managers to keep a ton of cash on the sidelines but with the fed finishing tightening and starting to ease and earnings

hanging in there and china doing great in spite of the trade war that money on the sidelines has had to come flooding back into the market you know what, i don't think it's done. john in utah, john >> caller: boo-yah, jim. >> boo-yah, john >> caller: thank you for taking my call. i'm from provo university and i like your enthusiasm you do a great job >> thank you very much. >> caller: my question is about tdtdt. ttd, i guess >> online platform really considered to be the state of the art. it's been a remarkable stock i keep thinking it's too hot and too high up another 79% this year what do i know i plead guilty mea culpa. i did not think it would go this high sometimes you have to own when you were too conservative. it's all about expectations.

and those were set when the market felt like the world was going to end so much more "mad money" ahead i love it. i feel like i haven't slept in three days that's how much i love the show. he was the one of the first business leaders to predict the rise of the economy. tonight i'm asking the ceo of zoro, mr. zoe where he see it going now. i'll sit down with one of the ceo of service now and of course all your calls rapid-fire in tonight's edition of "the lightning round" so stay with cramer.

all these new ipos attracting attention

many of these stocks are in the doghouse because money managers are selling them to participate in the next round. at this point some may be too attractive to ignore consider zoro it's looking more and more like subscription services are the future their stock got slammed last year and it reported last month. it was like, look, the quarter was good with it trading at seven times next year's sales i think it's attractive so let's take a closer look with the founder and ceo of zuora who wrote the book. get a better sense welcome back to "mad money." good to see you. there's a great line in your

conference call, not the one where you mention me where you say the vast majority of business models have to eventually transition to subscriptions. that seems like a gold comment given the fact that most don't know what a subscription does. >> well, they know i mean for the last ten years we've seen the rise of this thing we've seen a sub description economy and end of ownership. but you're seeing sales go down. look at the car industry >> i'm glad you mentioned it with employment up and with household formation growing we should have the biggest number of cars sold. >> we should. >> car sales are down in china of all place, right, where so many more people are coming into the middle class because there's so many other options out there that anybody under 35 is probably opting not to buy a car. >> now do ford and gm understand this. >> here's the thing, the number of miles driven have gone up

if the car companies can think like a subscription company and tie it to miles driven their revenues would go up tied to car sales it's only going to go down for the next decade so there's $1.5 trillion of connected car services available and the question is, who is going to get that revenue? the car companies? i would bet on them. >> i think people have to understand the unique proposition you offer. every subscription company i know has to use you because you are the gold standard and yet when i look at it, i see companies like caterpillar what do they know? they reported today, a good company but they're not new in the sense of knowing how to subscribe something. >> well, what's driving ownership. subscription business, we think technology company, zoom -- >> i use it. it's fantastic we power their business or media company, dow jones, financial times, the economist, right, but every single physical product is

now coming off at centrally line connected to the internet and what's happening these products are becoming essentially edge devices in a network and so what companies are saying now that my products are smart one, my engineers know -- how my customers are using my product which is what the software -- they provide a service to you and what you see is every physical product from appliances from whirlpool, cars from ford, tractors from caterpillar will go through a transformation and become services. >> well, i think it's rather amazing because i think a lot of these companies will be far more lucrative. not something they should necessarily fear, correct? >> well, if you look at the software industry, the software industry was in the doldrums around 2005/2006 but then it found growth and believe the manufacturing industry is going to find new sources of growth because the power of subscription businesses is ultimately growth and helps you

grow your businesses. >> you got an outstanding statistic. you say subscription economy index, the latest from the fall shows the last seven years they grew revenue five types faster than the s&p 500 >> five times faster than the s&p 500 and grew 300% in the last seven years so what we're seeing is the early adepartmenters of the subscription economy are finding growth and that's why everybody is moving into the space. >> now, usually i hear that europe is way behind us. europe is moving fast on this. >> this latest study we did was super interesting. europe is slightly faster in growth to subscription in the economy. the iot sector has eclipsed the technology manufacturing companies releasing smart devices connected to the internet. >> you have collect which i like because there's a lot of -- one of the big problems people with subscriptions is deadbeats we don't call them we call them people who haven't paid but you have a way to reap that harvest. >> collection system a great example of how these businesses

are so different in the old model i shipped you the product. if you didn't pay me i'd come to collect. i want you to continue using the service. maybe you need a break or update your credit card or maybe you need help through a period of time so collection is -- once have you a relationship with a customer, i would like you to retain a long-term customer, how do you do that >> the key to me and subscription is long-term value of customer and if you can make it so someone is a customer and stay long-term, i can price that company's value. >> well, that's why wall street is valuing these new subscription businesses coming on the market so much higher than their product counterparts and i think you have the essence. people don't understand the subscription economy are taking existing products and trying out how to pay over time this is not what it's about but building customer centric business models and taking iot, mobile, whatever it is and transforming what you do as a service. this is the heart of these digital transformations the

companies are going through. >> i said this when it was private. now it's public and i love to have companies that only go public it's a game breaker. you can't really run a subscription business unless you hire these guys. it's rather amazing. it's about as close to a monopoly as you've seen if you are in the subscribe that's tien tzuo, founder of zuora. sometimes very to say i don't get why it's trading so low. "mad money" is back after the break.

>> announcer: "lightning round" is sponsored by td ameritrade. it is time it's time for "the lightning round. >> buy, buy, buy >> sell, sell, sell. [ buzzer ] >> and then "the lightning round" is over are you ready, skee-daddy. time for "the lightning round. let's start with kim in new jersey kim! >> caller: hi, jim thanks for all you do for the home gamers. >> you're quite welcome. >> caller: my is textron txt. >> the previous stock had staying power but went right back down. i say -- >> don't buy kevin in minnesota

kevin. >> caller: jim, thanks for taking my call. >> of course >> caller: hey, jim, hey, is it time to buy halliburton? >> the house of pain. >> is it time to move into the house of pain? i don't know i don't even want to sublet there. pete in new jersey pete. >> caller: jim, what do you think about eagle pharmaceuticals? >> i think nothing of it i don't like pharmas at all. a big old pass on that how about manuel in illinois. >> caller: jim, i just want the your shouts on six flags made the dividend sound safe your thoughts. [ buzzer ] >> inconsistent, inconsistent says the diplomat in me. how about kevin in illinois. kevin. >> caller: boo-yah, jim. kevin from chicago, illinois, the shoulder of big shoulders and narrow goalposts. >> and jordan howard which one? >> caller: my stock is cars.com.

>> what tien said, we're going to lay low it's pristine and perfect. glen in florida. glen >> caller: hi, mr. cramer. how are you? >> good. how are you. >> caller: thank you, i'm good i saw your interview with the ceo of micron. i crunched the numbers a bit and bought it. p/e of 4, earns 10.65 a share. >> right >> caller: where is it going >> the guy i like, they're not probably going to do that number or else the multiple the wouldn't be so low a sign the earnings won't be there. that said people will look through it so i would say don't buy here if it goes back to 39 -- >> buy, buy, buy >> give it a little room i don't think they'll make the quarter. i'm not done i'm going to go to helen in south carolina helen. >> caller: hey, jim, thanks for taking my call my stock is church and dwight.

>> it's doing some small things. you know, when i'm in the consumer package goods i like procter, i like he stay lauder and you know what, we might be able to take a fly on colgate. i bet you it's a good quarter. jim in the illini. jim. >> caller: hi, jim great day to you today >> oh, same to you, jim. >> caller: i'm wondering what your thoughts are on aflac afl. >> my rap on them the same for a decade goes up nicely over time and i tell you that's not a bad thing to say it goes up nicely over time and that, ladies and gentlemen, is the conclusion of "the lightning round. [ buzzer ] >> the "lightning round" is sponsored by td ameritrade ♪♪

♪♪

the cloud kings, they just keep delivering. just look at service now the software company that lets businesses automate various information to technology processes not to mention all sorts of back office jobs. they are the king of helping other companies save money on labor costs but even cloud king needed rest. it had been treading water then after the close today, servicenow reported a blowout quarter and it roared in after-hours trading and delivered a 13-cents earn egg beat substantially higher than expected revenue, and gave

bullish guidance to the next quarter and raised revenue in billings forecast. it was a terrific quarter. we have loved this company, i can't -- i don't know for a couple of hundred points so let's dig deep with the president and ceo of serviceto you to find out more about the quarter. welcome back to "mad money." >> hi, jim how are you doing? >> john, it's always great to see you. you are the deliveryman and i'm liking at a chart in your deck, 17 of top 20 deals in q1 included three plus products i've heard of land and expand. that's nonsense. you were landing and taking over >> well, jim, that's the power of being a platform and fundamentally service now is a platform a platform that enables you to digitize and automate work flows all across the company allows great experience.

>> when i see these number, the first thing i think of the reason the federal reserve doesn't need to tighten is because there are companies like servicenow doing more with less making your company far more efficient, not necessarily laying off people but certainly as a company grows servicenow grows with you are you part of a new economy that explains the greatness of how our country can grow without inflation? >> well, in many ways, jim, i think the lessons and experiences we learned in our consumer lives where born in the cloud, the mobile phone came out, cloud based applications like an ebay, paypal, amazon, lyft, allowed us to be more efficient at home and have better experiences and then it was a win/win. that's now coming to our lives at work and so a platform like servicenow helps a company provide a better experience for ourselves at work whether it's a

more automated experience, for instance, launching a mobile onboarding product next week which will allow a new employee to go through their entire onboarding experience on their mobile device. that is both a better experience for the incoming employee and it's significantly more efficient for the company. soy, bottom line i think you're right that a cloud born in a cloud platform like servicenow will help deliver better experiences and be more efficient which is the kind of win/win we need at work. >> look, i didn't know about this mobile. i was going to go towards shifting to subscriptions and trying to figure out who else has that what i realize it is a decided advantage that you can take share. who are you displacing with that >> well, jim, in many ways we're not displacing anyone. here's what i hear from customers. customers are embracing four to six strategic software

platforms, often it's salesforce, workday, servicenow, it's adobe for marketing analytics it's office 365, maybe s.a.p. if there is a supply chain and trying to put as much as they can on these platforms so there's going to be multiple winners. now, servicenow's role within that is twofold. one, we're the i.t. system of record and help i.t. departments go from being legacy i.t. to modern i.t. but very importantly, we provide workflow, cross functional work flow around many of the other platforms so employing onboarding is an end to end employee experience. if you think about what it takes to onboard an employee you need to get your badge from security, your desk from facilities, your laptop from i.t. and sign up for your hr, your health plan, you got to sign up with payroll which is in finance got to do compliance training. you're probably touching seven or eight different departments with servicenow's app, what it does, it connects all those

together into a seamless experience for the new employee, but under the surface it's connecting with workday, with concur, with adp and all the other supporting systems. >> right. >> so i think this is a world where you're going to see multiple winners and the real winners are going to be the employees who get better experience, customers who get better experience and companies who get more efficiency. >> obviously people aren't wasting two days when they're just hired and not making any money for the company. john, something i was looking through your release you guys are getting close to adobe and microsoft. but you know what, i know you were close to salesforce and we all get these things i don't know anymore i don't know how well adobe get as long with salesforce. are you trying to be do-it-yourseswitzerlan but maybe you're drawn into -- >> we're trying to do what we do best, digital workflow and we realize we want to be world class at what we do and then

work highly effectively with the other platforms. that's what i hear from customers. customers are saying to me, john, i want one plus one plus one to equal five. or as one of my customers said i want one plus one plus one times servicenow to get ten times productivity so working hard to integrate effectively with other leading technologies and other leading platforms because that's what customers want. fundamentally each of us do different things, yes, there's some five or 10% overlap on the edges but to deliver true digital transformation, to deliver truly better employee experience and productivity we need to be able to work together on behalf of our customers and that's what we're committed to doing. >> john, that's why you are a cloud king once again. thank you so much for delivering and, servicenow, great work. great to see you john donahoe, how much have we

loved this and thank you, stick with cramer. >> announcer: take control of your financial future with the new "mad money."cnbc.com new interviews and full episodes, analysis, even your own sound board. plus, special access to "mad money" 101 with rules and techniques to break down the market for all investors. >> the red flag that makes me drop a stock immediately. >> it's everything you need right when you need it the new madmoney.cnbc.com. just slip them right on and off. skechers slip-ons, with air-cooled memory foam.

let's see, microsoft, fantastic. not bad. facebook, unbelievable oh, who could do worse lam research amazing. how do you like that and paypal. not bad. hey, that's a good night i like to say there's always a bull market somewhere. i promise to find it right here for you on "mad money. i'm jim cramer

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