play, a value play hoping their rotation still has legs in it tse. >> guy. >> we had a lot of fun in the commercial break unfortunately the folks at home don't say it. >> unfortunately. >> expe against 115. >> see you back here tomorrow at 5:00 for more "fast money. "mad money" with jim cramer starts right now >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere. and i promise to help you find it "mad money" starts now hey, i'm cramer. well t other people want to make friends. i'm just trying to save you money. my job isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or tweet me @jim cramer. now that big business has rediscovered the urge to merge, some things here, just because a deal makes sense that doesn't mean it will get done.

just because a deal gets done that doesn't mean it will make sense. the dow finished flat, s&p advanced 0.7%, we need to address the merger mania because this market was dominated by deals today. both real and imagined before we get into the weeds let melee out my position for you. i love mergers and acquisitions. the higher the stock market goes and it reduces the supply of stock floating around and anything that takes out supply is good news even if it's applied to buy backs, however, i don't love speculating on mergers and acquisitions especially when acting on a tip as always, i say tips are for waiters if you're not for sure a deal is coming, accurate information is illegal. if you don't know, then you're just gambling. my rule of thumb never bet on a stock because of the

speculation, only buy a stock of a company with healthy fundamental. any potential deal activity let's say that's gravy which brings me to today's action this morning david faber reported that xerox wants to buy hp ink with a combination of stock and xerox is an $8 billion business and hp is $29 billion business and in the current configuration there's no way that it can be pulled off it's clear from the statement that hp issued this very evening, the offer they got from xerox is dead on arrival however, if hp wanted to buy xerox it's a horse of a different color. if they join forces they could buy an enterprise, cherry pick the best salespeople cut costs. at the moment, hp's personal

computing business is thriving but printerers are not so hot. but still, they have a plan to trim the workforce and maintaining that hefty 3.3% yield. first, hp got a new ceo. and he probably wants at least to kick the tires of his own enterprise before he makes a major decision second, hp is trying to go for higher growth models like 3-d printing not more regular old printers which has become a commodity business while hp has some proprietary business it has the businesses that hp is moving away hp wants to be the leader in manufacturing digitization and this deal really doesn't further that okay, that said i don't think the transaction is that far-fetched. about a year and a half ago, hb tried to buy xerox in january of 2018 at the time, xerox was exiting fuji film and giving them

$2.3 billion in cash with that out of the way i think a takeover is more likely. what do you do i would sell hp in the spring. i think it will have trouble hitting the numbers. take those profits and plow them into xerox it has cash and the stock sells for nine times earnings. i see no harm in owning this one. last night we started to hear that walgreens boots alliance is thinking of going private. we have cvs on the show later today. they're seeing strength in prescriptions and also they acared aetna late last year. why was it brilliant for cvs simple, they got away from the tepid sales from the front of the drugstore. they're in the competition with the death star, amazon and it's pretty much a pure play, old fashioned drugstore

chain which isn't enough to fend off the online poachers. they have better prices. you have another big store, not a lot of special features or prices for something like a costco or a walmart to say nothing of amazon. and so now we are hearing that they'll take itself private. they'd be doubling down on the part of business that is getting hammered there i can think of worse decisions but not many of course, anything is possible. companies do stupid things all the time ge did four in a row but if you're buying walgreens here, betting it will be taken private, don't hold your breath. swap out of walgreens and swap into cvs finally, there's tiffany the jewelry store chain. one of the best run companies in the world wants to be bought roughly $15 billion. let me be very clear that's not going to than don't get me wrong, i think it would make a ton of sense. this merger makes just -- it's clear they should do it. tiffany's would be part of the

larger enterprise. tiffany is worth a lot more than the brick and mortar i have been impressed with the ceo and if you haven't seen the new designs i think you're missing out. that's a terrific reason to go to the stores and do some shopping but it's not much of a reason for tiffany to be a stand alone outfit, plus nobody knows luxury like lvmh. to belabor the point, tiffany is a good wide receiver, something for tom brady to hit around. the task is too big for tiffany to do alone so it would make a ton of sense for tiffany to get bought by lvmh as long as they offer a decent price i hope they can make a deal because it's worth a great deal to both shareholders, tiffany's got the see the light here again, i'm pro merger because they reduce the stocks of the

balanced supply out there. lower the supply lower the prices the lockup on insider selling in uber expired causing more than a billion shares to be released. this stock has been a disaster but if uber can off load the ubereats delivery business to grubhub or doordash i think it would make a bee line from 26 to 36 and the stock would be acquired too doordash is private and you know what i mean. there are too many companies in the delivery space and it takes out a rival to benefit the entire industry. how about all of the cloud based marketing company, cloud based cyber security companies we need massive mergers to the stocks go i like the first horizon iberia tie-up bank. a very good example of two plus two making five. the bottom line, while mergers can be fantastic if you own stocks they're miserable if you

own the stocks that are poorly performing companies where you'll be left holding the bag if nothing happens enjoy the fact we're starting to hear chatter again but don't feel compelled to speculate. for the most part, that's a game ryan in alabama. >> caller: hey, how are you doing, jim >> i'm doing well, how about you? >> caller: i'm doing well. i have a question about taylor brands so they're selling one of their corporate apparel lines and one of the distribution centers. to lower the debt. and they're talking about cutting their dividend and using that money to potentially do a share buy back program with all of this in consideration, do you think there's any more upside to the stock in the near future >> well, we have to be candid with each other. i think that taylor brands is one of those dying brands. maybe it can bounce, but the fact is that i even struggled to try to figure out how to recommend the f corp here. i like colombia, and my

condolenconenc condolences to mr. boyle for losing his terrific mom. i won't recommend the apparel sector other than nike or columbia let's to gregory in california >> caller: good day to you, kind sir. how are you? >> i'm good. how are you? >> caller: i can't complain in the california sun, but my -- one of my favorite stocks really got spooked on halloween it was a pretty terrifying october 31st earnings report from acar doe libre. it's dropped 80 bucks and some more since then. i wanted to talk to you about that and see if i should consolidate, sell it if i should hang on it i did listen to the earnings call and it seemed line it may be one of the high growth flying stocks that got murdered. >> i agree with you.

look, i know there are people who cut the price target, a lot of the analysts got away from it the only time in town. and in the end it's a stock that i think i have liked since it came public. i'm going to stay and tell people to be in it let's go to joe in connecticut joe. >> caller: hey, jim. i love your show. >> thank you >> caller: you're the jack vogel of individual stocks. >> jack was an amazing man, they thank you. >> caller: so one of your stocks -- i think it is one of your favorites but it had a little drop lately american tower. >> yeah, i don't know. this is just pure profit taking. american tower is the classic name -- classic growth name. i would buy the stock right here we need more towers. there's no doubt about it. 5g requires them i think this is a very good stock. and i thought, hmm, you know what if this one comes in, buy it it has, buy it there's a plethora of deals roiling the market some are super, some are

miserable. be careful of what side you're on on "mad money," cvs offered a booster shot after reported the earnings beat, i'm sitting down with the ceo should you be hitching a ride with uber or lyft in this market and first horizon announced the second biggest bank deal of 2019 this week. find out what it means for the stock and your portfolio when i find out what's on the horizon 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 e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to dmeynbcomaon.cc.m.

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xfinity mobile. click, call or visit a store today. look at the stock of cvs health run i have been a big believer in this story ever since cvs bought it for $69 billion a less than a year ago and then

the stock got pummelled for months before bottoming out in if 50s today, cvs reported a phenomenal quarter. they posted a 7 cents earnings beat, higher than anticipated revenue, robust same store sales, clean beat and they raised the full year forecast for a second quarter in a row. all met or exceeded the expectations just as ceo larry merlo predicted when we spoke to him in march and it's still cheap, ten times the earnings still down more than ten bucks a peak a year ago. i bet it has more room to run and that's why it's one of the biggest positions in the charitable trust don't take it from me. let's speak with larry merlo, the ceo of cvs to see where the company is headed. welcome back to "mad money." great to see you, larry. have a seat. you know, we live in a what have you done for me market, but i'm going to reverse that. tell me how you did it because

once you tell us how you did, then i'm not as worried about the future because you have a great template now. >> you know what, jim it's really a tribute to our 300,000 colleagues they believe in our strategy, our vision and they're working hard every day to bring that to life and we're seeing the benefits as you just talked about in the quarter and the outlook for the year. >> there are so many places to go here. i do want to start with the concept that a lot of people are skeptical about buying managed care company some of it because the democrats are into single payer, but this integration with aetna and the membership surge, something they like about cvs that you have much better membership gains than a lot of the companies. >> as we look at the challenges in health care today, yeah, we're seeing the emergence of consumerism in health care. >> yes. >> what we have been talking about as a retail health consumer and, you know, as we think about the opportunities in this cvs/aetna combination the

opportunity to make health care local, meet people whether in the community or in their home or the palm of their hand, how can we make health care more simple to access and navigate and our nor star is helping people with their best health outcome and lower cost. >> the hub initiative seems to be working i don't want to get too far ahead of us, but that can be rolled out nationwide, right >> jim, we are well on our way we piloted it in the houston market we're now bringing that health up concept to philadelphia, tampa. atlanta. by the end of this year with plans for 1,500 health hubs across the country by the end of 2021 what we have seen in houston is validating the beliefs in our strategy this retail health consumer and what we can do to help people on their path to better health. >> the analysts they know what the hubs look like for our audience which knows very, very retail oriented what is exactly a hub

>> well, you know what, jim, it's taking our cvs pharmacies and it's repurposing some of what we call the front of store. more health related products health related services. you see an expanded clinic, the role of the nurse practitioner expands. he or she can treat 08% of what they can do and we talk about the growing incidents of chronic disease and the people aren't following the care plans to achieve the best health. the role of the pharmacist expands to do more than just dispensing a prescription and then we have wellness programs, we have nutrition programs all of that with our health focus expanded while continuing to maintain elements of convenience that focus on, you know, the beauty, the personal care category. >> there are people, listen, jim, they're up against amazon, amazon is buying a pill company. amazon can't duplicate that.

>> you know what, jim, innovation has become part of our dna. and our teams are doing a great job to identify is there any white space that we can -- that we can leave to be disrupted by others and you have seen us do a number of innovative things whether it's home delivery you know -- by subscriptionti service. we can deliver by drone. our teams are doing a great job in terms of working hard to meet the needs of the consumer. >> now, i think that people have to recognize what is different between cvs now. i mean, i had my cvs i go to all the time, you know that. it's got food up front and look, i like that, it's within walking distance of my life, but the store of the future won't look like that. >> our journey began many years ago, think of 2014 which

eliminated the sale of tobacco products we have gotten many learnings from that and what we heard from our consumers is help educate me on more healthy alternatives you have seen us do a number of things of introducing, you know, healthier snack food items more convenience items you know that really speak to that dynamic. >> you did -- you mentioned the tobacco and you pulled it. that hurt your earnings but didn't matter because you were changing your company to health care i know i have to talk about this because we were chatting about it before. some of your work being undone by vaping? >> you know, we saw 95 million fewer packs of tobacco products sold across the country and there was a direct correlation between cvs market share and that rate of decline but unfortunately, especially with school aged children that's going the wrong way with this growing -- you know, concern with vaping. i saw some stats that 78% of,

you know, our youth that are still in school, that, you know, have begun to vape will begin to use tobacco products before they finish high school we have to get our arms around that issue and reverse that trend. >> you have become a great spokesperson for health care do you think we can ever use your model to actually cut health care spending >> you know what, jim, we are all confidence that -- confident that we have opportunities, again back to the north star of helping people on their path to a butter future. if you can engage the consumer, to engage them more, to make health part of their regular routines you do that with the right products and services. you know, we can and will improve health outcomes and when we do that we'll reduce overall health care costs. >> were you surprised to hear some chatter about walgreens going private and all they're doing is doubling down on the part of your store that you're always worried about. >> well, you know, jim, certainly you can't comment on rumors that we see in the marketplace.

but, you know, we are very excited about our strategy as you said we talked earlier this year. you know, it was on a piece of paper, but, you know, that vision, that strategy is coming to life in a meaningful way and what we're hearing, what we're seeing from you know our consumers, our clients, the payers is validating, you know that that strategy is in fact the right one. >> it can be happening at targets? >> you know what, target is an important part you know some of the things we're doing with our pharmacists around what we call pharmacist panels, we'll be able to execute some of those same programs out of our cvs pharmacies within the target stores. it's been a great partnership with brian cornell and his team. >> last question, people worry about the dividend they were saying you took on so much debt. i can't believe how much you paid down. >> that's right. we paid down about $8 billion since, you know, we closed the transaction and, you know, we have a plan to achieve our leverage ratios in 2022.

get to the low three times and be able to, you know, begin to expand our capital deployment strategies. >> well, the work you have done is admirable and terrific. larry merlo, president and ceo of cvs health. this is a value stock with great growth stick with cramer. man: how can i deliver superior long-term results? it begins with a distinctive approach to managing money. that for over 85 years has focused on keeping confidence up

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high protein. low sugar. tastes great! high protein. low sugar. so good! high protein. low sugar. mmmm, birthday cake! pure protein. the best combination for every fitness routine. normally stocks in the same sector trade together and stocks in the same industry trade almost in lock step. but every so often you get an abnormal situation that they take off in opposite directions like we're seeing right now with uber and lyft. for months these two ride sharing plans were the poster children for everything wrong with the ipo market in 2019.

uber and lyft both became public in the spring with incredibly disappointing reaction last month, both started to rebound from the lows after initial flirt with lyft i'd be bearish on the two i wasn't sure to what to make of the legitimate bottom, and given that they're the growth names that the market turned against over the summer, ultra fast growers that are a long way in turning a profit, i didn't care to speculate didn't seem worth it but if anything happened over the -- a funny thing happened over the past week, lyft reported a decent quarter and then uber reported an ugly quarter on monday. now they're moving in opposite director lyft is hanging in there and uber is breaking down. and when you take a closer look i think they could keep moving in opposite directions yep, i'm pessimist about uber's

outlook. there's no lyft eats first it's worth noting that they were disentangling themselves when they reported in august the last time we got results from lyft it smashed wall street's expectations. with bountiful revenue growth, spectacular guidance including a narrower than expected loss versus last year and i thought maybe it's not a glorified cap company. and lyft's stock jumped 3% the next day and it peaked why? mostly i think it's because uber reported a couple of days later and uber's numbs were much more mixed. the earnings were better than feared but the lesson of the last quarter is that uber is more complicated than lyft wall street doesn't like complication it's not a pure play -- thanks to ubereats and freights and the food division, the uber freights, the freight business

went down. uber freight business did well but the rates went down for all freight. now, the stock got hammered on the news, plunging from 43 to 33 and then the pin action dragged down lyft. then both spent months getting hammered then uber rallied 18%. lyft pole vaulted 24%. in this case, i think it was positive pin action from lyft pulling uber back up lyft went public in march and the lockup expired a month later. you had a massive quantity of previously restricted stock hitting the market but most of the insiders who wanted out well, they had sold they got rid of the major overhang then lyft's two senior executives spoke at a wall street event saying that the earnings before interest and taxes and amortization would turn positive before the fourth

quarter of 2021. the analysts hadn't been dreaming of profitability for the next three years wall street has no patience for unprofitable growth plays but a growth name that has a clear path to profitability that's a different story so lyft's stock roared uber road the coattails which brings us to last thursday when lyft reported another excellent quarter. they had excellent numbers with a smaller than anticipated loss, 27% increase in revenue per rider. management's guidance for the next quarter was extremely bullish. they raised the four year forecast and that's phenomenal look at this this is what you're looking for, right? that's what i'm looking for. here's how cfo brian roberts said, when we reported back in august i described the second sales quarter as exceptional and it was truly exceptional what about cost containment?

as a percentage of revenue sales and markets was 16% versus 41% for the same period a year ago representing a decline of over 60% end quote. wow. roberts said they made it happen by quote taking advantage of the healthy market environment to reduce coupon incidents and drive operating leverage period, end of story i cut a huge coupon for uber, 50% off. someone said i made a wrong decision in fantasy football and said you have been ubered. in short, lyft knocked it out of the park sure they're losing money and they have gotten the costs under control. now the sales are incredible however because the stock had run into the quarter it initially bounced 3.3% i'm calling that profit taking now when uber reported on monday, oh, messy. well, their sales and earnings

were stronger than anticipated, both monthly active users and total trips were a little soft the biggest negative was the ubereats the online delivery service. they're in horrible shape and grubhub had a total meltdown after management said they'd earn far, far less as the industry is way too competitive and that the diners are promiscuous. yes. promiscuous diner. don't get me wrong, uber is making major strides toward profitability. management believes they can start breaking even in 2021. but the stock still got to obliterate yesterday down 10% after losing 4% today why? the lockup on the selling expired. they have 1.7 billion in shares outstanding and a billion became tradeable today. because it's under water, they wouldn't sell it, oh, come on. they sell it when they're going lower and buy it when it's going

up remember, lyft got obliterated over the summer. although i was glad it didn't go down much more than it did bottom line it's too early to go bottom line and lyft not only is it lockup expiration already in the rearview mirror but reported two terrific quarters in a row and that's why lyft is worth buying here. we should have them on the show, we like them but because of the lack of profitability, let's be clear, it's just for speculation. or for young people. who use it and instead of buying cars greg in ohio, greg >> caller: hey, jim, big columbus, ohio, booyah to you and go brownies. >> why not, what's up? >> caller: i was wondering what your thoughts on the stock labongo health is. >> we like it, we like it a lot. i know it hasn't been that good. we were speculating if tim cook were in the acquisition mood,

well, it would be a buyer of it but he's not still, i think it's a good situati situation. typically stocks in the same trade together but lyft is a buy right now, uber not so much much more "mad money" ahead. what does the first horizon merger mean if you're a shareholder? then stocks can't get any respect and i'm explaining with one why that is critical to the entire market you probably never heard of it and then rapid fire questions edition of the lightning round. stay with cramer

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after a lengthy dry spell we

finally started to see merger acquisition again. on monday we learned that first horizon is merging with iberiabank it's not quite equals. one is $5 billion, the other is $4 billion after languishing for years the group began to rally over the summer and while first horizon stock reported a solid quarter, this was before the deal was announced. i'm intrigued with the combination so let's dig deeper with bryan jordan and learn about what it means. mr. jordan, welcome back to "mad money." >> thank you for having me back. >> people feel that the deal of mergers and banks is over, some are just too big to merge. you continue to find ways to grow through mergers tell us what this means for first horizon shareholders.

>> well, this is pretty exciting for us as you know, we have been a one state franchise we merged with capital bank and expanded into the carolinas and now this creates a real southern power house. iberiabank has a presence in louisiana, florida, multiple states across the southeast like alabama and georgia where we don't have a presence. and we created a tremendous franchise, strong presence in florida. high growth markets all across the southeast. and a balance sheet that gives us the capability to serve customers in new and differentiated ways. >> now, how different are the two banks in terms of the different systems you have between cyber security or whether it be through the kind of programs that digitize, sometimes it's easy to merge, sometimes it's hard. how different is it? >> i think the systems will be

relatively easy and the encouraging part to me is the culture of the two organizations are very very, very similar. we have similar go to market strategies and we have a customer partnership focus and with limited overlap we think we'll have limited impact on not only our customers but also our employees and customer facing folks >> i'm incredibly conscious of where you have moved to now is the other hottest area which is the louisiana and florida area you're already in the fastest growing market in the company, tennessee. do you see an above gdp growth for the area you are involved in >> yes, we have strong economic growth in the south, the customer activity continues to be very good i'm encouraged by what i see not only in talking to customers but also what we see in financial statements and balance sheets. and one of the neat things about

this combined franchise that iberiabank and first horizon bring together is an above market growth rate we're forecasted to grow in household growth rate 25% faster than the united states as a whole. so not only is the south strong today, we think we're positioned in this merger to be even better growth rate for the long term. >> i keep seeing organizations move to your area. particularly to tennessee. but of course because of oil and gas and how well people are doing in louisiana is amazing. i saw mitsubishi shifted the headquarters to tennessee. alliance bernstein they moved to tennessee. it was noticed at "college game day" you can see that memphis is on fire. tell me what -- about the great migration into your area of banking. >> yeah, it's fantastic not only for us as bankers but great for

our communities. it strengthens the entire community when you have an end migration. as i mentioned before in conversations, look, it helps to have good or favorable tax policy good work environment and good, strong quality, high quality labor and an educated workforce. not only here in tennessee, but the carolinas, florida, all across the south we have got a great opportunity to continue to attract in migration of business and talent and see strong, strong economic growth over the next several years. >> one last question and i know we spoke last you felt that maybe the fed had gone overboard. they have done the cuts that we both think are necessary positive signal? >> i think it's a positive signal that they have cut and they have signalled a pause. they feel like in the communication that they want to

see some more data i think the third quarter gdp data was encouraging as i said what we see from borrowers and the economy at least in the south it continues to look good. >> it will be a very, very good deal bryan jordan, remains my favorite regional bank "mad money" is back after the break. this is apple card. a new kind of credit card. created by apple, not a bank. with a better way to track where you spend. a new level of privacy and security. daily cash you get back every day. and no fees. not even hidden ones. oh, and if you happen to be somewhere that doesn't accept apple pay yet, there's this. nice.

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all clean. all the time. >> announcer: lightning round is sponsored by td ameritrade >> it is time. it is time for the lightning round. sell sell sell -- buy buy buy buy -- you hear this sound - [ buzzer ] -- then the lightning round is over marie in arizona >> caller: hey, jim, beau booyah i want to talk about - >> that's my favorite of the defense contractors. i like united and raytheon, but

this is coming down for no reason bill >> caller: hi, mr. cramer. i want to know where humana goes from here. >> i think this goes up. this is a referendum on who's winning in the democratic party and if it's elizabeth warren people sell it i think right now the moderates are more in charge buy humana sam? >> caller: mr. cramer, looking to make a decision in the energy sector and i love -- what do you think of kmi >> no. i know that rich kinder continues to buy stock i think both the c corp in the pipelines are losers unmitigatedly negative on them danny in new jersey. >> caller: what's up, jim? >> not much, how about you >> caller: i'm doing great i'm calling about the stock far-fetched limited. >> man, that's not that good another power play you know no wire not going to go there

these are -- i don't care if it's online or not how about nick in florida. nick >> caller: khc. >> everyone is -- it's back and it's bigger than ever but me i say sell out because this has got 2340 growth how about richie in ohio >> caller: jim, how are you doing, sir >> i'm good. >> caller: i'm a big fan probably my fourth time calling. >> there you go. >> caller: i lost counter. i'm a big fan of data centers. i wanted you to shed some light on switch. >> switch is good. i like cyrus one i mean, look, i like the data center business but if you look at what i like about the data center business i also like growth and i like yield. and, you know, i don't see it with switch. they don't have it let's go to joe in california. joe. >> caller: booyah from southern california. >> nice to have you. >> caller: first let me thank

you for your help in the -- in letting us being understanding of the markets and then - >> thank you >> caller: i have a question on u.s. dr. >> you have to get an infrastructure bill to like that stuff. i thought we'd have an infrastructure bill and it hadn't happened. katherine in new jersey. >> caller: hi, thanks for taking my call. >> of course >> caller: the stock i'm calling about is an ali. >> it's a high yielding thing. i'm going to say absolutely not. absolutely not let's go to nick in michigan nick >> caller: hey, jim, how are you doing? >> good. >> caller: do you think the aurora is on discount -- >> no, because they're under pressure and they get completely whacked. playing whack a mole with one of these. let's go to rich in florida. rich

>> caller: yeah, jim, this is rich from nepal, florida i have watched for show for many years. my question is about microsoft it's -- it seems to be in the holding pattern. >> yeah, remember this has been the great stock of the era it is doing what i call continuation pattern i think the longer it stays up there the better that ladies and gentlemen is the lightning round. >> announcer: lightning round is sponsored by td ameritrade this piece is talking to me.

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when will this market stop punishing the cloud stocks lately it feels like nothing the companies can do is enough for this market. if they reported a good quarter, nobody cares, if they missed good numbers then they're toast. consider the cloud based digital

platform that we have mentioned a few times before and hub spot is one of the standout performers it was at 83 bucks and then it was north of 200 last night it sunk to 151 and today it got beaten down to $145 what happened? the company did report a terrific quaet quarter they beat expectations and they actually have earn earnings when wall street was only looking for 24 cents better yet, the forecast was raised three months ago before the cloud stocks went out of style. this would have been a picture perfect quarter and the stock would have shot higher rather than going down 6 bucks. these days the cloud stocks are no longer fashionable. so investors look for the slightest imperfections to give them an excuse to sell and the ceo gave you what he -- gave you what youn't the want to hear he gave you disappointment i felt like we had a solid

quarter, 33% growth was really good and solid it could have been higher and the reason it wasn't higher wasn't macro uh-oh. that does and sound good he goes on, quote, i think the reason it wasn't higher was more execution on our side. earlier in the year, hiring, we fell behind and that's rippling through, end quote, ouch it gets worse. quote, the other thing is just -- we had an outage back in march and that was kind of a big deal like we talked to a lot of customers about it really impacted them and we take our responsibility very seriously end quote. i mean, that's why hub spot's guidance was weaker than expected why should we care about hub spot why does this matter i bet most of you had never heard of it until just now it's kind of an outfit you only know if you're in business with them or some sort of momentum

fund but a good reason for you to care. see, hub spot helps to find new customers and expand these clients tend to be small, medium sized businesses. if you go to the company's website, they have highlighted a person in rock & roll hall of fame and they brought in more visitors it brings us to the real problem here i can think of a dozen outfits like hub spot. do the same thing, off the top of my head fast growing cloud based companies with momentum stocks and each has a half billion dollars in sales if you hire hub spot i bet they do a great job although they did have that major outage over this year and that might not -- they may not have enough salespeople, you know, if you get salespeople you need a stock continuing to climb all the time but here's the question. who the heck even needs something like this $6 billion company in your portfolio? after listening to that conference call i know i sure don't. plus, in fairness, hub spot has

a horrible chart and many momentum traders the ones who are willing to buy the stock they're chart followers. after the conference call it's too easy for momentum traders to dump hot spot and go into adobe. two days ago they held an analyst meeting. they were very, very bullish, good guidance. the stock is a heck of a lot cheaper selling for less than 30 years this time's earnings and hub spot is 89 times or swap into salesforce or ring central or 5-9 they sent the stock up almost 9% sure these are different cloud companies when you get granular, but all part of the same turbo charged growth cohort. i would say they're all the same thing. at the end of the day, we have a glut of cloud based software spots like hub spot and that makes them all tough to own. after that quarter who needs it? definitely not you in your portfolio. stick with cramer.

take control of your financial future with the new "mad money".cnbc.com and even your own sound board plus access to "mad money" 101 to break down the market for all investors. >> the red flag that makes me drop a stock. >> it's everything you need right when you need it the new madmoney.cnbc.com. they never stray from their predetermined path. but this season, a more thrilling journey is calling. defy the laws of human nature. at the season of audi sales event. to take care of yourself. but nature's bounty has innovative ways

to help you maintain balance and help keep you active and well-rested. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy. man: can i find an investment firm that has a truly long-term view? it begins by being privately owned. with more than 85 years of experience over multiple market cycles. with portfolio managers who are encouraged to do what's right over what's popular. focused on helping me achieve my investors' unique goals. can i find an investment firm that gets long term the way i do? with capital group, i can. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant tell him we're flexible. don't worry. my dutch is ok. just ok? this man is very bendy. tell him we need this merger. he says he needs a hug. it's happening..!

just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. i'm part of a community of problem solvers. we make ideas grow. from an everyday solution... to one that can take on a bigger challenge. we are solving problems that improve lives. tough night for expedia. the online travel area has gotten very tough. i'm just not sure i can recommend anything in that although i did think that marriott which is brick and mortar travel was better there's always a bull market somewhere and i promise to find it for you right here at "mad money. i'm jim cramer see you tomorrow

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