investors with 13 fs valpost, new position. >> karen did you check out how macy's traded today? horrible if walmart -- [ laughter ] >> you want to sell the xxe. >> cow. >> that does it for us i'll see you back here at 5. "mad money" 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 we're out here in san francisco uncovering all things tech and innovation google makes friends, trying to make you money my job is not just to entertain you but educate you, teach you and put all of this out here in

context so call me or tweet me after a day where averages opened hit yous. s&p rising .68%. nasdaq falling 1.13% what makes the market tick it is just nutty we are ruled by tariffs and trade. not diminished entirely. when we get weak retail sales numbers like we had today, freaking people out. a ton of short selling at the opening it sets the stage for a terrific romp once we learn mid morning that the president's auto tariffs might be delayed implying right here, right here, this is what caused it, implying that the president may be trying to put global pressure on china giving the upper hand in the on again, off again trade talks bingo. look at that here's what i want to do i want to walk you through what happened this crazy session because it is a perfect encapsulation of the new long.

first we had the feeble number down .2% that's the second decline in three months widespread weakness. autos, home centers, internet stores downright ugly immediately interest rates plummeted. it was incredible. see, we don't really want to see that because it might go into recession. benchmark ten year treasury has a 2.37 yield that's the lowest in years that's extraordinary six months ago fed chief jay powell was worried about the economy over heating then he ratcheted up interest rates one time too many and now we have negative retail sales to deal with. that retail number led to a rough opening. just when it looked like the averages were going to give up yesterday's gains, the white house leaked that trump's thinking about not putting any tariffs on imported cars given that he was expected to hit them with a 25% duty any minute, it was a major positive.

so the markets screamed higher just when the dow jones average was about to roll over he saved it again he's the houdini. he went from being a hated protectionist know nothing to someone who dlefrly assembling a coalition with the chinese. we have no idea if that's the case maybe trump didn't want the dow to roll over we know how he watches the dow either way with the auto tariffs on hold, euphoric buyers stepped in picking up the stocks of tech companies with big european business yes, facebook and alphabet now don't forget about those retail sales numbers that caused buying yields to plummet suddenly stocks with safe, consistent dividends looked a lot more attractive. so they flipped to the kimberly-clarks, pepsicos. i think it's counter productive

when the president bashes jay powell for taking interest rate too high it makes it hard for him to change course but trump's not wrong. we'd be in better shape if the fed would give us a rate cut after these numbers it would be justified. it was obviously a painful mistake to raise when powell did, but no one could ever admit to that. although you can bet that trump will be running against powell and the chinese in his 2020 election bid here's the thing about this kind of environment, it's perfect for companies that don't need a strong economy to make the numbers. in the old days the biggest winners were just fang, football, amazon, netflix, google and now alphabet. numbers may be too low there even apple came charging back after opening down a couple of bucks. why not? the president is playing nice to the japanese and europeans that gives him a stronger hand with china these days we also round up the usual suspects

we have a whole cohort of the cloud kings you heard me name over and over again. they become go-to names. when people are worried about an economic slowdown, the cloud is a secular winner, meaning companies keep investing in the money saving software even when business slows down so work daze day, splunk, twilio go down. you want to buy the slow stocks in the slowing economy the trade desk, which you spoke to yesterday, they skyrocket toto m too. tdd rallied nearly 8%. that should never have been down to begin with. what else? money flowed into the financial technology plays of course they came into paypal, into square, visa also master card from the laggard bank stocks, that's always the trend today the rally had a special twist to it. we know anything health care has been in the dog house courtesy of the democratic presidential candidates regardless of how you feel about

medicare for all, i can guarantee you that the health care companies and big pharma are not, not at all nfar -- lets say they surged because they're precisely what works in a surging economy. there's only one skunk in the party. the actual catalyst for this movement, retail macy's reported a huge beat and initially the stock looked like it might rally two points and then the ceo told us -- said that his department stores could be vulnerable to tariffs on furniture and then it went back and then some. ralph lauren said their made in china footwear and sweaters will be hurt. guinette said there will be no additional tariff increases. given that president trump seems to link his popularity on china bashing, that's a sucker's bet trump's already talking about going after the other 60%. if that happens, the analysts will have to slash their

estimates on this one. macy's won't be alone. almost every retailer has some exposure they've spent decades sourcing the merchandise from chinese vendors. as fred smith, the ceo of fedex recently told us, you can't flip a switch and move to vietnam overnight, it takes time and money. as i stare out the windows, i see gigantic cargo ships with sometimes up to 20,000 containers on a clip i know most come from cambodia, thailand and bangladesh. the retailer's best bet might be to start sources from mexico if they end up being the big winner, that would be some cosmic irony one last thought, we're seeing far more of the united funnels than i expected. loyd blankfein, former ceo tweeted this morning that the tariffs might be a necessary evil tom freedman made a career out of it found himself in a love fest with steve bannon, the

former trump advisor who styles himself as an economic nationalist went on "squawk box" this morning to me these represent tectonic shifts in the wall street consensus. i think it gives trump a much better bargaining position and gave us higher stock prices. we have a weird combination of tailwinds. weird retail blew wind in the cloud kings, consumer packaged goods place. at the same time trump easing up on trade with china and japan gave many other stocks new life. some days like today the stock market actually makes sense. who knew let's go off to riley in georgia. >> boo-yah, dr. cramer thank you for taking my call. >> of course. >> caller: want to let you know, sir, you are the goat, sir >> greatest of all time, watch out, that's patented by muhammad ali.

let's go to work. >> caller: yes, sir. you said 10% of your portfolio should be in gold. do you think it should be more than that? barrett gold is a good option? >> look. it's -- the person who runs that company, he's terrific it's great you want to do that. you can do gld, bouillon i'm going to recommend all of those for 10% of your portfolio. >> hi, jim i have dwdp and i'd like a heads up on their reverse stock and what does this mean for the stock? >> okay. first, thank you for that question all i'm going to tell you is this company is splitting into two. both businesses are not doing well it's a holding of my travel trust. i'm not happy with how it's doing. i understand after the company's breakup maybe there will be more value created but it has been down 16%

nothing short of, yes, a disaster all right. who would have thought the good news may actually be sfleel and the market made some sense today. on "mad money" tonight, one of the best growth stories i followed and the executives follow me tonight fresh off the report don't miss my exclusive with cisco. trump has decided china is failing. i'll tell you what it means for companies here at home as more and more people become cord cutters or cord nevers, i'm talking to a ceo of the company that is the biggest beneficiary of the trend do not miss my sitdown with the red hot roku and stay with cramer >> don't miss a second of "mad money. follow @jimcramer on twitter have a question, tweet cramer #madtweets send jim an email to madmoney @cnbc.com or give us a call at 1-800-743-cnbc

miss something head to madmoney.cnbc.com. @cnbca call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.

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so far 2019 has been the year of cisco. you know i've been a huge believer in this story for a long time. under the leadership of chuck robbins, the networking hard working kingpin has embraced software, especially for security, the cloud and internet of things. this year it feels like everyone has become a believer as the stock has surged up 21% here to date now tonight cisco and the company delivered a top and bottom line beat, robust guides for the quarter. let's check in with chuck roberts. special treat here kelly cramer, the chief financial officer learning more about the quarter in the company's prospects. mr. robbins, ms. cramer, welcome back to "mad money." >> jim, thanks for having us today. we appreciate it. >> all right of course. now, chuck, even though the world's become a tougher place i know since we talked last i saw

a nice reacceleration in business in orders talk about the transformation because it seems like it's even getting better in terms of software versus hardware >> well, jim, we have -- obviously we're very proud of what our team's accomplished this past quarter. we've been on this journey to increase the percentage of our business that comes from software and even implementing subscriptions on top of our cornet working portfolio,s which has gone incredibly well whether you look at our collaboration portfolio, security portfolio or cornet working portfolio we have drastically increased the percentage of software in our business and we've also driven a ton of innovation that obviously our customers are really believing in right now so we're really pleased with what we've been able to do. >> kelly, i also know that the expense control has been incredible and the gross margins continue to go up. 1% expense growth is pretty amazing. how are you spinning off much more cash than i thought at this point? how are you able to do that? >> i think the whole business is

focused on driving the bottom line in addition to driving a creative growth and cash-rich businesses everyone's focused on driving -- that's why you see the shift to software high margin, falls through the cash very disciplined in where we're investing our dollar so i think the whole business is focused on that and you're seeing it come out in the cash flow. >> she runs a tight ship, that's the bottom line, jim. >> that's why i'm grlad that she's with us. i know she does. you're seeing dram coming down this looks like the first quarter that's impacted. i have to believe given where they are that it's the first of many >> yeah, no, that's a grade point. dram did turn around to become a tailwind for us like we expected given where the prices are we definitely see this for the next couple of quarters really helping and being a tail wind for us we're excited to start to see that benefit after being such a big head wind. >> chuck, i see the america's up

nine you're up five i see asia pacific down four i know some of that has to be china. while china may have been weak, i'm going to ask you about that. how much does it really matter to the overall past of what you have going >> we talk about it, jim china's only 3% of our business. obviously we don't want any aspect of our business to be down but it is a small portion so the revenue numbers that you just cited were really, you know, mostly related to china. as we look at our order run rate for the quarter, we were really pleased with, you know, around the world our global public sector business was up 10% our global enterprise business was up 9 and global percentage was up 5%. the only area of weakness is the same area we've seen from other competitors and what we've heard about in the press which was our service provider business. it was down double digits in orders the rest of the portfolio, the rest of the business is actually doing very well. >> will there come a time where we don't have to worry so much

about service provider revenue because of the preponderance of subscription revenue that you've got going? >> well, i think -- >> you tell us it's a hard question, i know. >> no, the magnitude of the -- you know, the service provider business being down this quarter i think on an orders basis and still our guidance was in line i think does reflect the transition in the business model and the other aspects of the business service provider capex last quarter was down across the world almost 20% so it's obviously a very stressed part of the business. kelly, any comments? >> no, i think you hit right on it. >> kelly, i know that when i look at the share count it's drastically reduced. you continue to buy a lot of stock. you bought a lot of stock at the 52 level how do you do that buy back? because you've got -- you did the repatriation but it seems like you're in there every day if the stock were to drop to 48,

49 would you be more aggressive? >> yeah, absolutely. i mean, we've been buying back a lot. now that we've got tax reform we've been aggressively trying to reduce our share count but we're smart about it we are opportunistic the only part that is happy about that, we can buy stock at a low price. there's a lot of momentum that's been driving it up over the last six months we're smart about being opportunistic. >> chuck, if i were to look at your security business which is now buried within a very large company that is growing much faster than it used to, how big is that security business if i compare it to, say, cyber art, palo alto, to fortnite these are all very good companies. is your business larger than theirs >> well, jim, on the call today we actually said that our enterprise security business, we are the largest cyber security business to enterprises around the world and obviously growing at 21% and it has a massive

software content and it's very much subscription based. i think that the architecture that we put together is resonating with our customers. when you can see threats across, you know, the continuum of the modern enterprise and then actually defend dpie namm mickically from the cloud to the end point to email to the network, i mean, that's what they're looking for. in today's world with the dynamic movement of data and applications, that's what you have to do i think the architecture our teams have built is resonating with our customers. >> now i also have ritualistically have to ask, what happens to you guys i know, kelly, you've had to cover this with chuck. what happens under a scenario where there's another 300 billion that gets a bump up to 25% in tariff. the impact on you guys >> if that happens, it's every single import. the reason we've been able to mitigate the list to 25%, it's only been a portion of the business if it goes to all china imports, it's not going to only impact

us, it's going to impact efr industry we'll adjust and continue as always we have a very agile supply chain and we're moving very quickly which has allowed us to mitigate that so far that would have a much bigger impact. >> jim, i'm proud of the team because last week obviously we got the indication that the tariffs were going to go to 25%. they did on friday morning within 48 hours our team had executed on everything we needed to execute on to take care of it so it's behind us and it's relatively immaterial at this point based on all the work our team has done and it's built into our guidance. great work by the team. >> well, geez, i've got to tell you, a lot of people were concerned that maybe there would be a guide down. clearly not the case in a tough world you guys continue to deliver. chuck roberts, ceo of cisco systems and kelly cramer, cfo of cisco systems. thank you. i'll talk to you soon. >> see you, jim. >> "mad money" is back after the break.

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with the trade war raging, trying to get a better read on china. when you see the chinese government numbers in the retail sales figures we got last night, they're not up for a trade war sooner or later they have tog's release from alibaba, the chinese gigantic company which gave you a blockbuster set of numbers including 51% revenue growth it seems like the chinese customer is doing just fine using their amazon how can you tell if china is feeling the pain from the trump tariffs? here's my advice just don't do it you can try to game china, but it's a mug's game.

it's like opiates and we need to stop smoking them. the chinese communist party doesn't care about this data i think you're being very optimistic that figures they release to the public are accurate it's a one party state their government has every incentive to put its thumb on the scales when they release bad industrial production, shouldn't we presume the real numbers are a lot worse? either way you're not getting an accurate picture and this simply isn't what the chinese government isn't responding to you know who else doesn't care about this data? president trump. he's already decided the chinese economy is failing he'll say it endlessly remember the failing "new york times," that stock is double so what, it's failing. that's what he does. what does matter though? let me put it this way china uses all these unfair trade practices because they benefit chinese businesses the white house wants them to restructure vast swathes of their party or else. they would rather take the pain of trump's tariffs

they think a stalemate is better than a trade deal where they need to make too many concessions. as long as they hold sway, president trump is going to slap tariffs on everything from china. remember, the white house is happy with a stalemate, too. it means we collect $100 billion in tariffs you hear him talk about that he loves that. any company that relies on china as an end market or as a manufacturing base will be a loser. it doesn't matter, by the way, that president trump is and some of the minions want to make a deal it's in their best interests to wait this out rather than coming to the table i think trump believes the harder he is on china, the more he will crush any democrat running. he's not the least amount concerned. no one is squawking about it except the economists. trump, not the economists, could be right you should prepare yourself because when trump rolls out the next set of tariffs, when, not if, the market will get hit. i bet it happens sooner than you think. plus, how well received the news

was he may not put new tariffs on cars from europe and japan. that can go far towards the old dream chief economic advisor larry kudlow had finally we know trump thrives on conflict he's going to make you want to sell any stock that's reliant on china in any way that's right any stock. that's why companies that move their operations out of china will get higher priced earnings multiples than companies that stay companies with middlemen like with cisco, it won't hurt them if you have a lot, you're going to get crushed forget the data. both trump and the chinese communist party have the same attitude towards this stuff. they don't need no stinking numbers. honestly, as easy as it would be to both sides, all of these are alternative facts, it makes sense trump wants to use the trade war to win re-election and xi can't be seen giving in to america or the pullit bureau

might replace him. judgin goods get slapped on believe me, he has convinced his base and now far more than his base that tariffs against the chinese are good for this country and the chinese, i don't think they will know what hit them let's talk to david in indiana. david. >> caller: boo-yah, mr. cramer from indiana long-time watcher. remember you from the kudlow and cramer days. reading your book "get rich, stay rich. >> mention larry larry has the coalition of the willing going maybe to try to stop china how can i help you >> on monday's show you were discussing the effects of the chinese tariffs on several american products, which of one which was natural gas. you indicated that there is such a demand for natural gas that

there's not going to be anymore supply coming on so they will stop selling natural gas to the chinese and instead sell that elsewhere. well, with the rules of supply and demand, i was wondering why the price of natural gas and the natural gas stock prices, the companies that sell natural gas, their stock prices is below the 2018 highs >> well, the price of natural gas in this country is the lowest basically it's ever been. it costs -- it's better to flair it than produce it that's why it's so good to have an export market we have unbelievably low natural gas prices in this market and that's why the stocks are doing so poorly even though there's demand overseas. guys, forget the numbers our president has decided that china is failing, and he will never relent much more "mad money" ahead. it's a company beating tech giants like apple, google, amazon in the streaming mini device wars. is it worth considering the stock of roku? i'm talking with the ceo

it's number 6 on cnbc's disrupter list i have the exclusive it is exciting all your calls and rapid fire on tonight's edition of the lightning round so stay with cramer

lesson here, appears to cool down sometimes this catches the breath before the next hire. look at roku, tv streaming pioneer. one of the best performing stocks in the market since the ipo in 2017. they've transformed more than a gadget they've licensed to television manufacturers. it comes pre-installed in 1/3 of all tvs. after being up to the mid 70s in march the stock stalled out. roku stabilized until last week. that's when they reported a true blowout quarter, spectacular top

and bottom line beat there were tons of short sellers, wrong short sellers this stock has fallen 28% in a single session just last thursday it's pulled back a little bit. it's already rebounded to the low 80s. could it have more up side let's check in with a very exciting man, anthony wood founder and chairman and ceo of roku mr. wood, welcome back to "mad money. good to see you, sir. >> thank you great to be here. >> how did you do it you had a platform revenue increase of 79%. there was a time when you didn't even have platform revenue. >> yeah, i mean, roku's business is being the tv streaming platform in the living room. our job number one is to build scale of active accounts we do that through selling players, there's roku tvs and we monetize them through advertising. we're a large streaming advertising platform we help our partners who are launching a lot of new streaming services, we help them build

audience for their services. of course we get paid for distribution as well all those businesses -- streaming is very popular rate now. we had almost 3 million cut the cord a million last quarter. >> let's say bob iger wants to do disney plus and hulu, aren't you the man to see if you want to have big numbers? >> yeah. when these -- there's a lot of new streaming services launched. the disney service is getting a lot of press, apple made a big announcement both of those services have said they expect to be on roku. i think that -- those kinds of services coming to streaming just brings even more people to streaming and of course we're a great partner. we can really help those companies build scale if they want to use some of the marketing techniques we have on our platform. >> the 3 million cord cut is rather dramatic. who are these people i know you are the -- who are the people who are cutting the

cord who are the ones who are not taking it and what draws them to you price versus cable >> yeah, i mean, obviously a lot of people are cutting the cord or even, you know, never signing up for the traditional cable packages these days. they do it for two reasons of course, it's less expensive. >> right. >> it's better experience. half of roku's customers don't have a paid tv subscription and the other half, you know, they're a combination streamers and paid tv subscribers. >> how do they sku i like to watch news can i get just a news channel on roku i think a lot of males would like to do that. what is the average person who has a roku, what do they want? can we have a curated news like apple dedicated to us? >> there's lots of different choice when it comes to entertainment, abc has news channel, so there's a wide

variety. there's just lots of different options, including news. >> give me the price differential between let's say my daughter who cut the darn cord and has roku and what i pay on average with my cable bill? >> sure. well, it's about -- your first question about who are these people. >> yeah. >> it's americans. it's pretty much a broad-based demographic. >> the older people, we're used to payings the bill. we don't know what cutting the cord is. >> some older people are cheap they want to save money. that's a big driver. people want to save money. it's easy as well. one of the things when roku, we have succeeded by building a great user interface, making it super easy to use. for regular americans it's an easy way to watch. comcast has a new device coming that's pretty exciting are they frenemy at what point does a cable company say,i can't -- i've go to stop roku

>> the media industry really -- back when we launched roku ten years ago, it was just netflix i think most entertainment companies were really trying to just avoid streaming these days i think everyone's realized it's the future whmpt it comes to comcast, they're an important partner. they advertise on there, there's the xfinity app on row cue which leds you watch -- if you have light enough skin. all of the media companies are important partners with us these days. >> how important is programming? so you have ga"game of thrones", national sensation do you see a spike in roku because of "game of thrones" >> absolutely. choice of content. you asked how much does it cost to stream on roku, it can be free we have a lot of free content.

you can buy a lot of free content or you can pay and get into netflix and amazon. you get to decide how much you want to pay. >> let's talk about when a lot of us miss, i heard amazon was going to destroy you i heard that google was going to destroy you, kind of like pay l paypal what happened? did we not get it wrong? were you shifting more to software what happened and there are still people getting it wrong and i can't believe that any one that we thought it is. >> if you look at the emergence of new computing platforms like when windows became the most popular, it was a new operating system, then phones became a computing platform and windows is probably not rubbing well

>> they were purpose built for those computing platforms. for tv roku is the number one streaming platform in the country because we have built a -- it's designed for the business model tv. it's better for tv this pattern happens every time. >> can you build skinny bundles against something like news? can i get some refined smaller one? >> i think believe all television is going to be streamed we don't try to do anything around that. that's happening what we do is try to build the best operating for content, users in the living room. >> remarkable obsession with giving the customer what they want has created a juggernaut. congratulations to you, anthony. that's anthony wood. founder, creator of roku thank heavens i didn't miss the

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it is time it's the lightning round then the lightning round is over are you ready skee-daddy go to sal in texas sal. >> caller: boo-yah, dr. cramer how you doing today? >> i like that i like your spirit what's going on? >> caller: hey, man. the stock i'm calling about has been living in the house of pain at roughly $39 a share is it time to buy me some slumber jay? >> misery does not love company. sit tight. what a disappointment. i don't want you in my house of pain i say you go and say be bp better yields. how about jim in florida jim! >> caller: i'd like to thank my mother for introducing me to her

stock broker 55 years ago at age 13, to you, jim. for your continued education and advice >> we've got to stick with julio. we love lawson let's go to work together. what do we have? >> caller: tdf energy. >> i know it it's a local company for me. it's not in the league if you go there, go with chevron. i'm going to have to say no. but i like your comments they're very sweet let's go to sart in south carolina art. >> caller: i'm calling about applied materials. i started buying amet from november 17th to september 2018. you no longer seem to recommend applied materials. how about switching into land research and nvidia. >> they got a hard push from a broker rage house.

i prefer land so my advice is both are going to do well but i think land has more up side. let's go to jim in florida jim. >> caller: mr. cramer, big boo-yah to you. >> take a look where we are. boo-yah. >> caller: 2014 you gave me permission to buy a company called amerigas. now it's being bought out by ugi. i'm looking at tgp >> no. no way too dangerous. target is way too dangerous. i do not like the fact that that yield is high is not a good sign i don't want you to buy targa. if you want yield i'd rather see you in chevron. >> manny in washington. >> caller: hello, mr. cramer how are you? >> i'm good. >> caller: thank you for taking my call. wondering about hpq. what's your take on it >> you know what, there's

massive headwinds right now. i don't think this is the time i think they're doing a fantastic job, i just can't recommend it yet i need to see a better quarter than the last one. we've gone to doug in california doug. >> caller: boo-yah, jimmy cramer >> all right, man. what's up? >> caller: love your show, man hey, this stock has gotten beaten down pretty good. i'm starting to look to take a position in it it's mnk. >> no. don't do come on, we're high quality people we're people who like merk we're not going down the food chain. no that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by t.d. ameritrade ♪♪

♪♪ ♪♪

20 years ago there was a watch but believe. these days we know it's a lot more complicated every time i come out here to san francisco i have a new found sense of accomplishment. we spend more per capita than any other country. the problem, there's no transparency in our health care system very easy to get ripped off. we don't know the prices of

anything which brings me to good rx the privately owned company that allows you to shop these guys are number six on cnbc's annual disrupter list of revolutionary startups gets the average customer to save $276 a year i've used it turns out some drug stores charge more than others in the same darn area best of all, the service totally free you don't need to set up an account. they make their money via advertisements and referral fees they don't share your private information. it's not just for humans they can help you save money on drugs for your pets. there's often no insurance for pets i think this is a political game changer. let's take a look at doug hirsch co-founder learn what it means. mr. hirsch, welcome to "mad money. i have to tell you as a user of your are product, i'm going to

jump in. i didn't think it was possible i sound like a commercial. i did not think it was possible to cut a prescription cost by 4/5 but you did it. tell me how you got to this point and how you can possibly get these breaks. >> it's amazing. most americans don't realize they can shop around for health care reality is that health care is like any other industry. >> how did you find out? >> i didn't know i got sticker shock, took my prescription back and i found out there were amazing waste to save. >> there was a "new york times" article. i clicked on the link and it's a coupon system. explain why anyone has to take these coupons and how you really do beat, you beat the system >> yes so first of all insurance is not what it used to be i can remember the days of the $10 co-pay and you didn't have to worry about it.

insurance is covering less and less it turns out what we call coupons are really relationships between insurance companies, we call them pbms and pharmacies which allows a consumer who doesn't have insurance and get a good price good rx brought all of them together and put them altogether and said what's the best option? it might be your insurance, it might not. >> why will cvs or walgreens not bother we're not the least bit interested >> we have a great relationship with cvs and walgreens they want consumers to pay an affordable price when you walk into ccs, they don't want to say $2,000 because of the complicated nature of the system they can't discount it on their own they need to work with insurance and work with people like us to come up with a price so that they can provide an affordable price to the consumer. >> you're not robin hood how do you make money?

>> we work with all of the major pharmacies we make money a few different ways we have a subscription product called good rx gold. we make some referral fees and have advertising on the site we start from the premise of whatever is best for the consumer is what we're going to show them first. >> when we hear about run away health care costs and run away drug costs, aren't you kind of the answer to that >> i'd like to be for all of health care, not just prescriptions. >> we don't know what anything costs. >> i know. that's the craziest thing. imagine any other industry we're trying to buy a tv we don't know what it costs. >> could you help me >> we are working on that. >> it's hard. >> it's hard one of the great things about prescriptions you buy them in a retail environment it gets harder when someone is putting a knife in your knee. >> how many people don't know about good rx. >> 10 million people use good

rx. >> doctors recommend us. we have a ways to go we have 1% a year in prescriptions. >> i hope when people realize how many people you keep from bankruptcy, it is the single most salient reason why people go bankrupt. >> that's true the average american earns less than $400 and theaverage deductible is under $1500. so thaens most americans literally go bankrupt before they afford to get coverage. they don't take their drugs. that leads to bigger problems and they can't afford their drugs. >> now i look at you, listening to what you're doing i know doug hirsch worked at yahoo! and we worked together. give me the journey to you realizing this this is backed by silver lake, number six on our list it is a way to be able to change the health care system how did you go from dotcom to

this >> i was into messy problems i looked around and said, this is amazing when i searched google for prices, nothing showed up. that's messy let's clean this up. >> is there anyone out there to stop you some of those drug companies, don't they make less money >> to be honest, we get along great with the drug companies -- i know it sounds crazy. >> did you broker these deals? we think there's boogie men, someone out there trying to hurt us. >> yeah, i mean, everyone wants to communicate with patients everyone wants to be able to tell them about their information and we are that place. 10 million people a month come to us. anyone who can help us lower drug prices we'll work with. >> do you work with tele doc and they're saving the money for the entire health care universe? >> we do we recently started to list online tele medicine options as well you can get a prescription via good rx as well. anyone across the health

ecosystem that can help people save we'll put it on good rx. >> i have to congratulate you. you saved me i don't want to reveal how much. i know that the more people i talk to, they're all doing the same thing i'm so glad you came on the show because i want everyone to use your service because it's the best way to beat the systemand best way to be able to make it so you're still solvent because so many drugs wipe out so many people doug hirsch, co-founder and co-ceo we asked people about their purpose at the end of interviews how about the whole purpose which is to save people money. thank you.

there's a coalition of the being. they want europe and japan to unite against the u.s. and china. could it happen? i don't know there's always a bull market somewhere. i promise to find it for you somewhere here on "mad money." i'm jim cramer i'll see you tomorrow.

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