phrase slow and steady wins the a haven trade. and silver has a lot more room race i'll show you how it pertains to than gold. >> gold, guy adam. this earnings season >> shout out to the wrestling and with uncertainty in the stock, what should your next move be? i'm giving my take team crushing yesterday.reye h g and if you like it, should you put a ring on it going. >> great with ring central up over 50% in great job. the past week alone, i'm asking the ceo if it's time to still srts now. my mission is simple, to consider the stock make you money i'm here to level the playing so stay with cramer. >> don't miss a second of "mad field for all investors. there is always a bull market money. somewhere, and i promise to help follow @jimcramer on twitter you find it. have a question? tweet cramer, #madtweets send jim an email to "mad money" starts now hey, i'm cramer. welcome to "mad money. madmoney@cnbc.com. welcome to cramerica or give us a call at other people want to make friends. i'm just trying to help you not lose money it's my job not just to 1-800-743-cnbc miss something entertain you, but to call me or head to madmoney.cnbc.com. memory loss tweet me at 1-800-743-cnbc or tweet me at jim cramer some companies have to play by the rules. others just don't. the trick is knowing which is which. that's what this market has

devolved into, a two-track ging? affair that's bounded by highly subjective judgments about prevagen is the number one pharmacist-recommended earnings, and it's all colored by an epidemic in china that's memory support brand. going global you can find it in the vitamin aisle in stores everywhere. with the dow backsliding 128 points today, s&p shedding 1.6% prevagen. healthier brain. better life. and the nasdaq dipping 0.14%, why don't we start with the coronavirus which is what drove the market down today. regular viewers know i've been a harsh critic of the way china does business. the people's republic is an authoritarian dictatorship they can lie with impunity so when the communist part putsous positive but false coronavirus numbers, big deal. sure, somebody's head will roll if they get caught, and it looks like that's happening to some of the hapless party hacks who ran the government there at the heart of the outbreak. but the reliability of the numbers was always highly questionable i told you again and again you need to take official positions from authoritarian regimes with

a grain of salt, or in that case a pillar yet wall street has been trading off these numbers like they're gospel traders liked the s&p 500 when the infection slowed and sell when the numbers go back up. the chinese government started using a new diagnostic standard. the figures are probably still inaccurate i say betting on official statistics for the people's republic of china, i think that that is a fool's game, and here is where you will land >> the house of pain >> yesterday we thought the outbreak was under control because the data looked good today we think it's out of control. not under control, coming here quickly, that it can't be contained. that it's every man and woman for themselves look, i have no illusions. like many others, i've tried to figure out which experts and [ fast-paced drumming ] medical journals are aught authoritative, which ones to trust. some of the smartest minds out there are saying right now that it is too late to stop this virus. it's going to be a worldwide

pandemic millions will end up getting sick many will die. they make the dire predictions because the disease is more infectious than we thought initially, and the incubation period might actually be longer than 14 days some say it might be as long as 24 days. plus, the virus keeps mutating, which makes it difficult to come up with a cure of course, there is another camp that says the coronavirus will burn itself out come april when the weather heats up, that it will soon peak out, and your chances of catching it in america are minuscule. where do i come down on this if you're worried about your health, i wish i could help you. all i can say is wash your hands, keep them at your side, get masks and surgical gloves. whatever you do, don't get on a cruise or travel to east asia. that's why i bought the gloves it's not easy to be an old and the mask, because i want to school stock picker these days be ready for anything. we're being driven crazy, we have fire extinguishers and tortured by the new school, the chain ladders and baseball bats school of no consequences and no in every bedroom, to put out a repercussions, the school of fire, escape on or beat the crap out of the bad guys. am i a little bit paranoid

earnings reportage the mask and the gloves, i don't what do i mean by old school know too soon to tell take pepsico, which reported the key here, everybody's early this morning assessment of this thing is here is a company i've studied subjective through years and years. that's the important word, i remember when it accumulated subjective the numbers are subjective restaurants in the '90s, and i the articles are subjective. loved it what natural way to sell pepsi the forecast is subjective instead of coke at its own even questions that should have an objective answer, like the stores, stores like taco bell, disease's incubation period or kfc, pizza hut they were all in their growth phase. they were young. the lethality have become they were new. subjective because the chinese they were crisscrossing the have stonewalled or whitewashed, country. brilliant! making it impossible to get a and then i remember when they spun the restaurants off, clear view of the situation. you know what else is because who needs those three subjective stocks in the time of corona when i say subjective, i mean a restaurant companies, try com or lot more subjective than usual in this market, as unfair as it yum or whatever they called it is to some managers and ceos, i recall 20 years ago when many stocks are bound by pepsico bought quaker so it could own the sports drink valuation parameters, but there are a handful that aren't. business via the fabulous gatorade franchise huge win yes, both stocks are still immediate growth, replacing the traditionally valued, this sagging restaurant group morning goldman sachs upgraded revenues i remember tussling with the company more than a decade ago caterpillar arguing that that nobody ate the fritos at an machinery inventories are low and production cuts will boost earnings down the road overnight party i threw for my too me this was a very dicey daughter and her swim team, the upgrade because cat has to play hilltoppers from summit high

by the rules of traditional valuations maybe it can grow a little i said maybe, just made the faster, but ultimately bound by company's frito-lay division was dead its end markets. management scolded me. and its most important end they told me to go do some market, it's china homework and see what they were doing in good for you snacks at well, what's the demand from china right now? their aberdeen, maryland proving i think you need to sell caterpillar -- ground plant, plant that was >> sell, sell, sell! >> -- into this strength from closed loop. goldman's recommendation which before i knew what that was. is what we saw today they use the water from the i simply don't believe it can make the numbers, and therefore potato chips to be able to the stock will falter no matter where it is, no matter when it power -- pepsico i struggled to learn about sustainability from their former occurs on the other hand, this market has aristocrats that don't play by the same set of rules brilliant ceo ingenuity. take tesla here is a plan that announced to impact her share sell $2 billion worth of stock i only knew earnings per share and almost immediately there are she was years ahead of her time. people who are up in arms that now everyone cares sustainability tesla dictator elon musk, yeah, they're still learning from her even as she retired in 2018. he is a dictator too told us the every time have i written pepsico off, it has reinvented itself, bought something, spun company didn't need to raise capital two weeks ago when the something off, created stock was much lower something, boosted something, slimmed something, and almost every time they've been dead how outrageous i said to myself these people right. and that's what makes for a are delusional great long-term investment tesla is not like caterpillar. its valuation is much more subjective, which is how it yes, vibrant, yes, creative.

could rally on this news, on the sure, you can nitpick about the news that it's selling more growth of frito-lay or the net stock, because elon musk needs more capital to meet demand. growth of carbonated, but when you think of it like that, pepsico delivers time and again. i mention all this because every this is terrific news. so many people want teslas that bit of that institutional knowledge that i've earned is they need $2 billion to boost now meaningless in the face of the instant analysis stories production that appear as soon as the that is a high quality problem earnings report is released at remember for months i've been saying tesla could raise $2 6:00 a.m the typical gave you a typically strong quarter, yet within seconds i read a half dozen billion at the drop of a hat i was right there. articles about how they missed is strong demand for the product around the world you can buy the same lens through earns. projections. others made it sound like cisco told us last quarter that it's challenged. coca-cola is killing them. [ gunshot they said the same thing on the so others portrayed pep as a way report last night and the stock got clip, down more than 5% today. ward loser, because frito-lay you know what? you know i like cisco. but that makes sense was half a percent light all garnl, people. cisco is a commoner, not an aristocrat it's governed by objective but that's how reporters write so they can be the first in the metrics, and right now those news cue their an unseasoned bunch of metrics aren't that good ring central, which we'll hear jokers, but i'm jimmy chill, so from later tonight, both of i don't say those things i stick to my old school guns. these companies are high growth monsters, and that's all you i talk to the cfo.

need to know i read through the conference i'm not kidding. call i huddle with my the demand for their services is off the charts actionalertsplus.com team. so we report spectacular growth i look how the company as done numbers and their stocks keep on each line and historically how the stock has reacted each flying you don't need to know where their stocks were trading. time they go up no matter what, no lo and behold, this was a business as usual quarter for matter how much they were already up ahead of time, they keep going up. they aren't even bound by pepsico. another solid set of results, well done. gravity. this is highly unusual behavior my rigorous methodology makes me a dinosaur these days, versus people, because in the old days, the faster moving headline there were only two people like writers, thosee that, amazon and netflix those are only ones. now because growth is such a premium, thanks to the dinosaur is the tortoise and coronavirus and slowdown in china, many of these more those dim wit machine aid momentum stocks are breaking free from the four walls of the reporters are the hare we know who wins the race in the spreadsheet canvas end, because, alas, after there is tremendous demand for financial technology too those stocks go up no matter, spending almost the entire day what day after day after day down and sometimes down really bad, guess what? there is little demand for just the stock finished the session another bank up, up 39 cents. so those go nowhere. there is massive accelerating tortoise, 1. demand for all things cloud. hare, nothing. so those go up and up and go stick with cramer. there is declining demand for oil and gas. so those stocks untouchable.

>> sell, sell, sell, sell, sell, sell >> i'm going say that to you many times, many times, until every time we have strength, you do sell it ♪ now many investors hate what i just described they hate it when stocks are valued subjectively, especially people who have been around forever. they like to be calculating ratio, examining discounted cash flow, tracing trajectories, think about the e, think about the m, the p price-to-earnings multiple they don't want to look at price to sales multiples they like price to earningses. they don't want to look at enterprise multiples they like to look at companies as they are. they don't like unbridled momentum these traditionalists, they fear buying high and selling higher they think it's a money-losing ♪ strategy, to which i say not ♪ right now it is nt don't just plan to retire. buy high and sell higher is working here buy high and not selling is the plan to live. an annuity helps cover your best oh, it's nutty it's a virtuous circumstance essential monthly expenses,

well objective assessments of so you're free to live the life you want. find out how an annuity the coronavirus fueling these subjective stock valuations. can give you lifetime income at protectedincome.org i bet it keeps going until the outbreak runs its course i need to go to steve in california steve? we're committed to making college more affordable.,ome >> boo-yah, jim. >> boo-yah that's why we're keeping our tuition the same >> caller: steve from costa mesa through the year 2021. california i'm calling about el dorado - [woman] i knew snhu was the place for me resorts. i've been following the casino when i saw how affordable it was. stocks, and most of the stocks - [narrator] find your degree at snhu.edu. have been down due to the coronavirus. they have their pending merge were caesar's coming up. jim, do you think el dorado resorts is a good bet? >> no, i think it's too high what's happening is people are buying the domestic gambling and not wanting the international because the international have exposure to macau, which is obviously next to china. the one that i like is penn national and the reason i like it is because of the hookup with the new rx. crafted by lexus. barstool but that stock's gotten too high too. lease the 2020 rx 350 for $419 a month for 36 months. let's go to jonah in georgia jonah? >> caller: hey, mr. cramer experience amazing at your lexus dealer. thank you for taking my call. >> of course, jonah. great to you on the show what's up? >> caller: i have a question on peloton. can it recover from this drop it

just had >> i actually think it can peloton is what's called a ♪ earlier this week, we got a heavily shorted stock. call from up in north carolina there is a natural base of people who have to buy it on any who warranted to know about good news. ollie's bargain outlet holdings. when we get good news, the stock will fly i think this quarter is still a remember those guys? good quarter i don't want to own it longer that offprice chain that used to be one of my absolute favorite term because the stock is up a gigantic amount. retailers. but i think you're fine right what changed now. not great. i'm not crazy about it, but heim not going to tell you got to sell the stock okay, listen we're in a subjective market we and i bet it keeps goingd the well, ollie's founder died suddenly of natural causes i loved that guy now the stock had already been devastated over the course of 2019 the company was having a rough time even before butler's death, but it seemed like they had just gotten their groove back in the fourth quarter before we got the sad news of his passing. since then, though, it quickly fell out of favor. it's now down from 65 at the end of november to 54 today. that's off 17% during a period

where the s&p up 7%. so when ups mentioned ollies, i was reluctant to recommend it. i was worried about a leadership vacuum after taking a fresh look at the fundamentals, i'm ready to give oll ollie's my blessing, for the first time in ages first you need to understand what went wrong last year. in march ollie's surged to new highs after a fantastic quarter. the stock climbing to 103 at its peak as an off-price chain, ollie's can't be beaten by online competitors, not even amazon why? because they already offer the best lowest prices they buy excess inventory from distressed retailers for next to nothing to need to get the inventory out. and then they sell it to you at a nice markup that's still much cheaper than you can find anywhere else. they also had a terrific regional and growth story. we like those. it worked say in pennsylvania and florida. it could work across the country, allowing them to put up a lot more stores than most

companies. a what was amiss fast forward to june ollie's reports a mostly better than expected quarter, with one glaring flaw, not so hot same-store sales just .8 when wall street was looking for 1.2. not the end of the world, but the stock had just run a lot sinking to the high 70s by the time the next quarter rolled around in august clearly, the sellers knew what they were doing because the august numbers were genuinely omine miss coupled with same-store sales that were down 1.7%. the problem was straight forward. in its haste to put up new stock, we like regional and national, but we don't like fast in the haste to put up new store, ollie's hurt its existing ones mark butler explained these were short-term problems, they worked through them, the market didn't believe them and the stock lost 27.5% in a single day. ollie's bottomed around $55 in

october and then started inching up and was back up to 65 by the end of november. then we got the tragic news of mark butler's death over thanksgiving, and the stock immediately sales off. he was a great ceo losing him really shook wall street's confidence which was already rattled by the forecast cut. when ollie's reported a few days later, they delivered a strong quarter. it seemed like the problems were under control. while the stock jumped 15% in response, shareholders used the rally to start ringing the register they wanted out that bad without butler, they didn't want to keep betting on this turnaround i didn't want to either. and that's why ollie's spent the last two months sinking steadily lower. there is no need the overthink the move mark butler was the company's public face and greatest cheerleader. losing him caused people to lose confidence that's what it did to me we knew mark butler, we didn't really know much about ollie's bench, the other people who worked there

without his leadership, it felt too risky to stick your neck out on a situation that doesn't have much visibility. plus, the market has been so hot that it's particularly for this cheap retail, the ones that are offprice, that there was no need to stick your neck out it's not like we had a shortage of winners in this huge cohort that everyone's fallen in love with now, though, the averages have run up dramatically, giving us a new appetite for bargains in which we know there are few and far between. so ollie's might be one of those bargains after spending the last couple of months getting hammered, the stock sells for 22 times everything estimates at its highs last year, ollie's was selling for 45 times the earnings projections so relative to where it was, it's definitely a bargain. this is the cheapest this stock has been in years. aside from earlier this week when it briefly dipped below 50. in a market that keeps flirting with record highs, ollie's has been left behind

if management can keep turning things around and live up to mark butler's legacy, this the upside can be enormous so can they? let's talk than bench. after doing some homework, i feel a lot more comfortable with john swygert, an old hand who has worked in the discount industry for years in 2018 he got promoted to being chief operating officer. in order, he was an integral part of the team when the company was growing like a weed and the stock soared into the stratosphere still, i had to be sure about this guy so i asked the best retail analyst in the business, matthew boss at jp morgan. he told me he was mark butler's right-hand man for 16 years and was clearly butler's intended successor. i found that encouraging how about the rest of the bench? take a look at this slide from the company's last deck. ollie's management team is packed with experienced retail veterans if, like me you were a believer in butler's leadership you should trust the team he spent decades putting together ollie's still has a terrific in

store experience that never change, incredible deals that you can't find anywhere else the company has 349 locations across 25 states they believe they can grow to 950 locations without a problem. sure, they ran into a serious speed bump last summer when they expanded too quickly, but it seems like management learned from that mistake, and they've now got it under control most importantly, off price is in the sweet spot. that's why i like tgx and ross stores and burlington. and it's why i like ollie's. think of what we heard from columbia sportswear earlier. because of the trade war, retailers placed huge orders last summer. then phase 1 trade agreement with china and the coronavirus outbreak put the kibosh on tourism. well, tourism-driven shopping took a hit too now many stores have an inventory glut, meaning to sell to ollie's for pennies on the dollar your win finally, after spending much of the last year in the wilderness,

ollie's is starting to pick up institutional support. when the stock got slammed on tuesday, piper sandler published a note recommending the stock with an $83 price target even better, jp morgan's boss, the undisputed act in repeat, there is a lot to like about the business at these levels it's too enticing to ignore the company is presenting at boss's retail roundup conference this spring. i bet that will be a positive catalyst the bottom line, if you want to go bargain hunting in this market, i urge you to look no further than ollie's bargain outlet holdings. yes, i was worried after the company lost its visionary leader at the beginning of december, and knowing him personally, i couldn't imagine the company without him. now that i've done my homework, i think his successor is up for the challenge and the stock has become ridiculously cheap here and deserves to be bought. let's go to paul in kansas paul >> caller: hi, jim good to hear from you. hey, i had a question about walmart stock.

i've noticed since mid-december or so, it's been trending downwards. about like 9 to $10 a share roughly, and i didn't know what you thought, if it was going keep trending down for 2020 or if it is a temporary blip. >> the other day one of these research firms that does channel check said that walmart is going the miss the quarter that would surprise me, but it has put a chill on the stock voy to pick other retailers, because i am concerned that maybe there is something i don't know and don't understand about why things aren't great at walmart. i think they probably are, but i don't have that level conviction i like to have let's go to kathy in indiana, please kathy? >> caller: hey, cramer thanks for helping three generations of my family make good investment decisions. >> wow i love that three generations. someone must be very young too. >> well, my kids and my parents and us so yes, yes. >> thank you it's great >> caller: yes

lied lick to discuss cold, cramer i'm a club member who owned cold and sold cold and it still irks me i'm a mom. i know many moms who love kohl's we can get everything at kohl's. we love the coupons, the kohl's cash kohl's has the name brands our kids love. and the recent affiliation of fanatics and amazon should have made this stock a winner for everyone with earnings coming up, do you see any reason or opportunity to get back and do you think an amazon acquisition of kohl's is a possibility? >> i don't think amazon wants to buy kohl's, kathy, because they're already getting the best of kohl's without having to pay any money when you can return stuff there. it turned out not to be that good a deal of the kohl's. why did i turn on kohl's, and you're a member of the actionalertsplus.com club, because nay missed what they said they were going to do multiple times and in the end, i just got fed up you can miss one time, two time. but you can't just -- you can't

just whiff multiple times. and that's what they did if you're looking for bargains, look no further than ollie's bargain outlet i'm regarding the stock as being very cheap right here. i think it's a buy much more "mad money" ahead, including my exclusive with ring central. how can i help you that's how i think they can help you make money i'm talking with the ceo of this amazing story. then good news if the dog ate your homework. i did it for you and i think it can make you some money. and all your calls rapid-fire in tonight's edition of the "lightning round." so stay with cramer.

♪ as i said at the top of the show, when this market falls in love with growth stock, it falls hard and right i know wall street is once again totally enamored with the cloud, because this industry is a consistent fast grower in a global economy as being slowed by the coronavirus so look at ring central, the cloud-based communications and collaboration platform that's taken all over the enterprise. this stock has been a performer for the long time. the company keeps rolling out new partnerships with major players in the telephone suppose like a via and an at&t.

it sent the stock screaming up nearly 7% on tuesday before it tacked on another 3.6% yesterday and another 3.3% today it's now up 18% over the last week 72% over the past six months i don't know if this kind of momentum can be sustained because it is highly unusual but this stock captures everything that is working right now. why don't we take a closer look with vlad, the founder and chairman of ring central he had a better read on the amazing quarter and where the company is headed. welcome back to "mad money." >> jim, thank you for having me. great to be here again. >> all right, vlad, you hit the billion dollar club. i'm going to give you the floor for a moment and say how the heck did you get there that fast >> great market, great market. good product, maybe very good product, fantastic market. very, very early in penetrating that market.

we have two million and that's billion off run rate revenues, 400 to 500 million seeds via itself is responsible for 100 million seats of those so very early in the game. but i have to say feels extremely good to have this for a pure play software as a service company. >> you mentioned avaya i need you to tell our viewers how you got avaya, what it means and how it jump-started growth to a level that is extraordinary. >> well, we think it's an industry-defining relationship avaya is a conventional on prem business communications solutions provider so they've -- they trace their roots back to the original at&t, and as i mentioned, they are currently responsible for approximately 100 million seats. that's about 20, 25% of world

installed base our arrangement with avaya is unique so basically, we will be there exclusive unified communications as a service provider for their small and medium market. but medium is medium to large for a while. it's up to 5,000 seats or so so we have really good hopes here >> so, vlad, a lot of people don't know the name brinker, but they do know chili's, and this is a great restaurant chain that gets a lot of phone calls. when they brought ringcentral and they said on your website that they saved a great deal of money and they did much better for customer, what did ringcentral do for them that it got those two salient points going? >> right so brinker is a really important customer, well-known brand, and look, whats lit up approximately 900 locations for them countrywide

that's almost 6,000 user, and the value that we bring is everything is now tied together. so when you call and place an order by phone and approximately 60% of their orders come by phone, everything is centralized, and now their analytics teams can analyze the traffic. they can see who is calling when at one what time, and they can optimize the way that they staff those occasions. so it results in a much better customer experience. it results in a much more profitable business for brinker. so it's a valued customer, but we do well as well >> we know and we have had a zoom video many times, and so i don't want ringcentral to be slighted it's not just voice. you've also teamed up with them for a powerful combination with video, right >> that's correct. so promise of ring central is any device, any mode, any

occasion and our modes include voice. they include video, messaging. just recently we announced a deal with reachmont. some people may know their mont blanc brand of luxury pence, and their mold of communications is facebook and twitter and messenger. so, again, any device, any mode. >> in communication, any location, we do not discriminate we just follow the customer and we enable them to communicate in the most -- in the manner that they find most beneficial for their business that is a differentiated position >> if you're interested in this company, everyone, you got to go to their website because it's not just for giant companies you have smaller companies you 10, 12 people companies that have been able to expand their business because of ringcentral. i read about a company that makes t-shirts they used you. small and medium-sized businesses embraced ringcentral

too. >> that's absolutely correct we have a very wide base we're very proud of that we have over 400,000 businesses on our platform that's growing rapidly. and i'm really thankful for you to mention this, jim, because small business is a backbone of our economy, many economies, and the fact that we can scale and make a small business be as productive and as empowered a very large business. i think that speaks as a testament to power of our platform so we don't want to lose that following. >> it's not just domestic. you a partnership with atos, at-t-o-s a-t-o-s. that's a giant one >> we've announced atos as a $13 billion company. it's one of the top world's top si systems integrators it's the first si relationship for us

could not be more excited about it it gets us into yet larger enterprises. it gets us more global certainly much more into europe, what their base is and, again, it's just yet another opportunity for us to participate in digital transformation at the global scale for frankly businesses of all sizes. >> vlad, i want to thank you you introduced us to your company a long time ago where people ended up making a lot of money. and i think they're going continue to do so. great to see you, sir. great to have you on "mad money. >> thank you for having me, and glad people are making money was. >> excellent that's vlad shmunis. the founder and chairman of ringcentral. i know it sounds complicated it's not if you go to the website, you'll see dozens of clients and how they use the product that's the way i learned it. "mad money" is back after the "mad money" is back after the break.

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talk to your advisor or consultant we believe in education built for all people., - [woman] snhu was the best experience of my life. - [man] without snhu, i wouldn't be the leader i am today. - [woman] i graduated high school 19 years ago. i still finished. - [man] in the military, you feel that sense of accomplishment. that's what snhu is. - you will march from this arena and say to the world.. i did it. - [woman] you did it. i love you. - [graduate] i love you too. it is time it's time for the "lightning round" cramer says -- >> buy, buy, buy, sell, sell, sell [ buzzer ] and then the "lightning round"

is over. are you ready, skee-daddy? time for the "lightning round. i'm going to start with joe in florida. joe? >> caller: mr. jimmy chill, thank you. it's a pleasure. >> the chill man >> caller: i'd like to know what you think about align technologies, al-l-g-na-l-g-n. >> understand i've gotten this one wrong before i still think there is too much competition in the align technology business, which we know is the strating let's go to garrett in nebraska, garrett? >> caller: hi, jim first-time caller. i wanted to call and ask specifically about lci industry, lc-c-i-i l-c-i-i? >> this are v related. i have felt that the rv business has gotten too cyclical. so stay away, especially after this nice run. andrew how you? >> caller: i am good

i wanted oms i felt this is a financial services company where i can't understand what they have inside their business it just had a very big run because interest rates stopped i'm going to say stay away let's go to heath in wisconsin heath? >> caller: boo-yah to the chill. >> boo-yah >> caller: hey, on december 10th, you interviewed david cote and rob johnson. what do you think about them, vrt? >> i want to bank with dave cote, the man who turned honeywell into a powerhouse from a disaster which mines i want to buy vertel. >> buy, buy, buy, buy, buy, buy! ken in california, ken >> caller: yes >> it's jimmy chill, ken you're up. >> caller: okay. you talked about viva systems. i went out and bought it at 29.5 do you feel that now it is a buy, sell, or hold >> i got to tell you, software

of something is going higher, sass you know i think the world of this company aye where is peter bitten? why hasn't he been on lately he is doing incredibly well. he is of the salesforce lineage. it's kind of like a coaching tree with marc benioff and gassner is doing a terrific job. >> buy, buy, buy >> let's go to wayne in texas. wayne? >> caller: hey, jim. i got a question, sir. >> sure. >> caller: i sold my company about three years ago and doing real well. i've got two mutual funds that have averaged about 20% return over the last three years. >> nice. >> caller: and i keep about 10% of my funds in dividend-paying stocks that i think are undervalued. i'd rather go this way than going government bonds because the downside is minimal. right now i've got about 5% of my portfolio in at&t you said good stuff about them yesterday. >> totally. >> caller: i'm looking at

exxonmobil >> all right exxonmobil is obviously a fossil fuel company i think these are sells as they rally, and they've been rallying because they're so heavily shorted negative but i can not condone buying exxonmobil fossil fuels are a thing of the past, not the future and that, ladies and gentlemen, the conclusion of the "lightning round" [ buzzer ] >> the "lightning round" is >> the "lightning round" is sponsored by td ameritrade ♪ ♪ but in my mind i'm still 25. that's why i take osteo bi-flex,

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♪ the market took a breather today, we know that many stocks, especially the highest growth stocks have been on a real tear. we've seen all sorts of stocks surge to new highs, especially tech stocks, the nasdaq up more than 8% for the year already ♪ hallelujah that includes a host of names we don't know too well. lately we've been getting a lot of calls, which is typical given that the market is so hot at least in this segment that companies just aren't on my radar. maybe they've moved up too quickly, went from small cap to medium, even as their stocks are now up a lot in other words, we have a ton of homework to catch up on, because whenever i get a question i can't answer, i always do the research, i circle back to it at a later date i don't know if you've noticed, but i've gotten much more on the case about homework because you are asking about so many good ones, and this is an interactive

show which brings me to cdlx, a stock that jeff in california asked me about back in january 13th i told him i needed to do digging. i didn't know it and playing cards, i'm not going to be stupid it's a financial and advertising technology play that came public in 2018. i love this kind of thing because in recent months it has become a phenomenal performer, but it wasn't always when jeff asked me about this one, it was already up big, but i didn't know enough to figure out whether that move was legitimate or not. since then it climbed from 85 to 93 so clearly this one is for real. the big question is whether or not cardlytics can keep climbing it has a great storying, but the valuation makes me nervous let me tell you how i feel about this and why first, they are an ad tech firm, advertising technology firm that takes your purchasing data and uses it to make marketing more relevant and measurable.

they partner with banks to run their rewards programs which gives them a treasure trove of data on where people are spending their money so they turn around and help advertisers identify and influence likely consumers at scale. it also lets them measure the actual impact of their marketing campaigns. pretty good business this is a very clever business model. they help banks and entice customers and use the sites from that data to help advertisers, fintech and ad tech. and those are two great tastes that taste great together, kind of like that reece's peanut butter cups. my mom loved that. it's certainly how the stock market sees it, although it took a while for wall street to get interested this is what kind of stock i'm really looking for, and i want to really thank jeff for this. this thing came public roughly three years ago at the price of $13 per share. attend of 2018, it was trading at $10 and change. that's when you needed to pull the trigger. last year it caught fire

the stock finished 2019 at $62 and in the last six months the move has gotten even more intense. the stock surging to 93, almost a 50% move in a month and a half jeff in california, highest compliment you got horse sense. what's driving the move? near the end of 2018, cardlytics partnered with chase bank. the more loyalty program customers they're managing for the banks, the better they'll be at helping advertisers target their message. sure, the company started reporting truly staggering numbers when they got that chase deal let me put hit the way in 2017 and 2018, cardlytics had 15.5 revenue growth by the second quarter last year that number jumped to 37% by the third quarter, the most recent we have, get this, 63% revenue growth and that's why the stock broke out, surging from $40 to $60

when i reported those numbers in november not only did they give you magnificent accelerating revenue growth, the company also posted a surprise profit. billings were up more than 70% ♪ hallelujah in short, the new strategy of embracings by financial institutions is working. and at roughly the same time, they launched with their next partner, wells fargo no wonder the stock has been such a juggernaut. chase and wells fargo, they're gigantic customers talk about at scale. it keeps climbing. last month they guided for much higher than expected revenue saying incredibly bullish things about the fourth quarter, which sent the stock up another 25% in a single session like i told you before, this thing is a great story i'm very excited about the cardlytics, the company. but there is a catch what about cardlytics the stock? here's the rub as fabulous as the financials are, the stock's valuation i think has gotten way out of control, even versus the really good business they have. of course, the analysts have

been downgrading the valuation systems traded in the 30s they didn't see the massive valuation or the surprise profit coming, so they were dead wrong. but man, up here, listen to this cardlytics sales for 107 times next year's earnings estimates that's astronomical. the earnings are still small so maybe we should look at revenue instead. it sells nearly 7 times next year's sales it's still a lot now if cardlytics can sign up another big bank as a partner, they can surge higher because it will turn out to be cheaper than what it looks wir is what people are betting on but if the market turns against growth, this stock is going to get hammered at the end of the day, this is a stock that has basically doubled over the past few months i feel like if you buy it right here, you're chasing, and i hate to chase so for now i recommend sitting on tonight sidelines you you can't just go in and start taking a stock that's up this month. look you do it, but not with me. that said, great business means at some level the stock is

absolutely worth buying. bottom line, from now i'd avoid this one, even though its business is great. the stock's too high if they get slammed as part of a market wide rotation out of hyper growth stocks, then you do have my blessing to back up the truck at the price of $70. hey, that actually happens you know not that long ago when growth fell out of favor, the stock of shopify lost a quick 100 points without anything negative happening things got better in shopify i think the same thing could happen with cardlytics at 75 dollars it would be selling for just five times sales, which is a steal, given its phenomenal growth rate otherwise, it's no sin you got to say you missed it and move on. but also, i have to thank jeff for one hell of an idea. for one hell of an idea. stick with cramer.ed. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy.

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♪ things are in flux, dynamic, fluid. so stay right there, because you don't want to miss a cnbc special report on the coronavirus outbreak it's hosted by my friend contessa brewer. it's coming up next. nvidia a monster quarter that stock is going to go higher tomorrow morning i like to say there is always a bull market somewhere, and i promise to try to find it just for you right here on "mad money. i'm jim cramer see you tomorrow the cnbc special report begins now. cnbc special report begins now. i'm contessa brewer. the cronos rages on. 45 days after the world health organization was first alerted to this growing crisis the world health organization said it's spreading quickly.

how big is the iceberg >> health officials across the world scramble to catch up with the speed of a fast-moving killer virus tonight, new questions about how china is counting the sick th