>> i like baba coronavirus creates opportunity here and ultimately i think it's actually cheap. >> a name we mentioned from time to time, gardener. denver>> my mission is simple, e 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. welcome to "mad money" and cramerica. a lot of people want to make friends, i'm just trying to make you some money my job is not just to entertain but to educate and teach us so call me or tweet me at jim cramer tough day for the averages dow sinking 166 points s&p losing .29% and the nasdaq

eeked out a two basis point gain but it could have been worse and it should have been worse and was at one point in the day very ugly but the nasdaq rallied in the close taking the market with it. i kept from the very beginning, from the opening bell, where are the sellers. where are they why aren't they reacting to that ugly warning that we got monday from apple why is everything no matter how negative treated as a buying opportunity. it is like there is always something to be said for -- instead of -- and i think i know the answer. i think it is the index funds. 60% is coming in via index funds and they buy everything, including the stocks that should be getting hammered by bad news. and they buy in waves and they are in control of this stock market not mutual fund or hedge fund

managers either. yes, index fund buyers i know people call this market a bubble and blame an easy fed but maybe, just maybe, listen to me, there is no one toblame. you simply have many companies doing well and companies that have nothing to do with the coronavirus which is what hurt apple. and buyers use any weakness to back up the truck. they don't want to see if the stocks are down, they're too eager to pull the trigger. if they don't use the dip to buy, they'll miss out on a rare and short-lived moment of weakness between waves cascading waves, of index funds buying consider the case of apple yesterday my wife and i used the day off to walk around downtown manhattan and i greed not to use the pc and not to examine the latest coronavirus news and not to tweet and something that tweeting and coronavirus i'm

obsessed with. despite my best efforts though nothing stops the news and i got an alert on my apple watch and the phone about the apple warning. they will probably miss the sales forecast this quarter and perhaps longer depending on the course of the virus which no one knows because the epidemic messed up china. i said to my wife, lisa. we could crash if we get more announcements like this. apple is the most important company on earth if they can't make the numbers that means many others won't either you have to presume this is just the beginning. her reaction -- her reaction, apple a tough go in china and would anyone else expect otherwise. nobody is going out and shopping nobody is working. so what did you think would happen well, i explained to her the domino effect that apple could have and she asked if they were at their highs i said no. then why sell. stocks come back m that is what they do they come back it wasn't a rebuke as an honest

view of how people feel about the stock market these days and the index funds waves. this could be the ground zero for the epidemic and they have retail stores and it is slowing and they make product in china and her reaction, then let's go to the apple store and get all of the iphones we need before they run out i asked why do we need more iphones and she said you never know and she immediately asked for the nearest apple store. i did not protest. maybe it is time to go home and do some work when i explore the apple issue when i got home, this is what i came up with apple has six or seven supplier plants in the affected area around wuhan but they're parts companies, sub manufacturers that could be replaced somewhere else in china. that could leave any -- could relieve any shortages even the ones caused by my wife however the more important question may be how many people can the chinese government get

to go back to work the communist parties doesn't want to be a bottleneck but don't want to kill their own people i think it is a push if they could do it but we don't know yet. even if the chinese could get manufacturing going again and supply the rest of the world, the demand within china is not great. you think this news could be devastating and it was certainly as we saw particularly at the opening negative pin action. the stocks dropped on apple broadcast and sear works and others didn't feel it and nvidia had a good market and supplies so tight, demand is strong which is all that matters to the maker. amd, geez, the hottest of the hot. and soared since the last quarter the one that was supposed to be bad and it wasn't they put out google is using their processors

crazy thing. i figures amd would get that business but people were wowed and stock surge nearly 3%. if you were worried about apple and what it could do to the rest of tech you fight amazon and facebook, the nasdaq kings with the latter benefiting from mark zuckerberg soothing words in europe that he was less recentive to and microsoft didn't get bogged down it rallied 1%. tesla up $58 but honestly is that a news story any more why wasn't all of tech brought low by apple isn't that the question. i think buyers are waiting for dips so when we got them, at the opening, they bought stocks hand over fist to get ahead of the index funds hit. only stocks called out by wall street research get hit like emerson. it has more china exposure thar most and that is the one think

picked on. i thought that the sellers might say, if apple can't get parts what about retailers who source from china, aren't they at risk. isn't that should i wait on. and walmart investor felt comfortable buying the stock and a quarter with doug hick milan the ceo he told us, i know many purists were -- about the blowup and that could allow them to rival amazon and walmart is down from in the premarket to being flat and up and as they told a good story the 30% of the digital business could control the narrative helping the stock close up 1.5% at the end of the day. why not. retailers walmart look cheaps on the number and it had had a floor. no wonder it closed up nicely. and you know the irony, the

worst performers there was no news whatsoever. the banks. why because of a sudden drop in interest rate that could get into a recession and not a lower one so the stock at jp morgan and others are doing awfully since they reported even though they reported great numbers ironic, bottom line, an apple preannouncement drives interest rate downs which hurts the banks or in tech of all places sometimes truth is stranger than fiction. terry in michigan. terry? >> caller: hey, jim. thanks for taking my call. my name is terry burk heart, i'm a long time listener and the first time identified coming from the upper peninsula i took a position in [ inaudible ] hoping to get some gold exposure. i like the story but after the recent earnings report is significantly down i wonder if you think i should double down

or cut my losses. >> i went immediately to heather and kate i went to the two producers who want to get people on, their own people on and i said i want mr. boyd on and i do want you sir because i did not understand what happened with that quarter. and i need explanations. i'm looking right now at katie spencer who was a person who was integral in my anger of finding out what happened. shaerj gains being the other person and i'm not going to tolerate that let's go to kai lorb in illinois. >> caller: booyah, jim cramer. how are you? >> i'm good. how are you. >> caller: doing great talks on beyond meat, holding it for three months now -- >> just hold onto it it is an eco-system. i know people feel it is overvalued i'm a big believer in ethan brown and absolutely not

going to distance myself from the stock and i think it has a lot of upside over a five to ten-year period. and that is how you have to think about it when you deal with beyond meat the market is ironics. most stocks were unfazed by the devastating revenue and most of tech did well but the banks got crushed because a drop in interest rate and worry about recession with apple "mad money" tonight, a live person that helps over 18,000 people communicate with the customers and i have the ceo after a severe post earnings decline and companies like apple and walmart are feeling the pinch from the coronavirus but which stocks are taking the other side of the trade? i'll reveal. and cloud fair is one of the hottest to hit the tape last year but it stalled. what do the earnings signal? i have an exclusive. 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

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what the heck just happened to the stock of live person. here is a cloud based software company that used artificial intelligence to help with customer rell aigs management. you make bots that could text with your users. live person is one of the hottest stocks in the red hot group but on thursday night the company reported what it considered to be a disappointing quarter and the stock plummeted on friday before falling 4% more what went wrong. the revenue came in higher than expected live person had a larger than expected loss and the guidance for the next quarter and full year was discouraging and management is forecasts much larger losses and the revenue number for next quarter was also a bit light we talk to that live person since the ceo person is stepping down which is what wall street hates to see with a not so hot set of numbers but then again the stock is now

plunge from $45 to $32 maybe it is overly plennisheded. let's dig deeper with rob lacascio rob, welcome back to "mad money. so let's go right to it. i know that you thought it was a great quarter and that is very clear and i know that the conference call was filled with positives. >> yes. >> so what happened to the stock? >> i mean, we put out that we grew 20% in q4, that was 14% in 2018 and we grew -- guided 22% this year and we decided we're going to invest more in the company because we're a leader and we'll invest in innovation and i think the shareholders thought we would take off innovation this year and just focus on getting more leverage we will at the end of the year but we're leading the pack and we have to innovate as we do this. >> now i believe -- i just spent a -- read a great book by dave cody who is the former successful ceo of honeywell and

talking about that you need to be both long-term and short-term and opco is saying you're not giving us short-term results and they're toke used on the first quarter -- guidance below because those who bought the stock at the head of the quarter were crushed. >> growing 20% to 22% this year is what people expected and that is what we put out there i don't look at inter quarter, i'm looking at full year you know i take a long-term perspective and we're going offer at giant space so the quarter is lighter than they wanted not for us. we're looking at the year of 22% growth which is awesome from last year. this is all organic by the way we are not buying companies to grow the business. >> no. absolutely from how you do, i care about operating cash flow and the cash flow was light as jp morgan

saying investment driving lower than capital profitability and and the ocf was light. so absolutely you're doing great in your eyes the stock is saying that you're eyes are cloud and i have to deal with the stock because that is the four walls of cramerica. >> sure. >> so what do we tell people this is the right level? >> i think they'll see leverage and we told cheryl we'll see leverage in the end of the year in the model we're boxing our investments and doing $16 million in innovations an the rest is leverage off the bottom line but i think we're a growth company we're looking at a giant space and so i care like you do about rating leverage, that is where we're setting a rule of 40 we want to get to -- >> get to a 40 because now you're not at the rule of 40. >> that is correct but we're investing and growing and going after a big segment of the market. >> how about the live intent

analyzer which seems very proprietary. >> when i look at the space and we call it the conversational space, i think it is going to have as much impact as e-commerce or search or social. >> i agree. >> and we've talked about this the ability to talk to a machine and have a natural conversation, it it is in the collective consciousness of people. we all believe the alexa type situation should happen with every company. and we do with delta and t-mobile and all of the big brands so we're looking at now how do we take that to the world and live intent is technology to look at the intense that a consumer is having with a brand. i want to buy something, we have a way to analyze that and then use machine learning algorithms to scale those conversations that is what this is about. >> i felt that it could be a competitive space and you have so go for game, set, match. >> you have to. >> and i wish you would have telegraphed it more because then people would be happy with with it. >> i used the year to say we're going to be a growth company and

we're going to bax our investments in innovation about 16 million and the rest is leverage off the bottom line i think it is good it is better than pretty good and we're once again doing it organically. >> cfo departing normal course of business. >> i decided i want to make a change in that department because i looked at that is the department full of data, we're an ai company and i hired someone who is a leader in the ai space who has a great pedigree in financial services and all of that and he is going to take this but bring ai to that function. if we're the guest ai company in the world i want all of the leaders to be experts at ai and he's one of them and john collins is taking it over. so we had a plan we looked at that and i just want to game change that role too. >> so if you have bots, say you're china, that would say people a third of the people are showing up because the virus, bots could take that place but i wonder whether the customers or the airlines are under such

pressure because of the virus they could not spend as much as they did. >> there is a big pressure that is this, in q4 we signed a couple of health care companies. >> yes >> and they want to talk about defending themselves from amazon because amazon want to go into health care and the way they think they could do that is scaling the conversations they're having with customers and creating a different experience you go to a doctor, you have an experience with them and you capture that on a messaging platform and ai will help you with whatever is wrong with you. you want to process a bill instead of calling and being put on hold and you do that through a conversational experience. they want to game change it and the only way to defend is to get into the conversation after space. that is what they say. and we're the company trusting to scale operations with the conversational platforms. >> so who do you think you're pulling away from where this kind of thing because i think people are saying, i'm a little frustrated but maybe they shouldn't be given the moat that you're putting up. >> i think the conversation base is as big as search and social i think one day there will be a trillion dollars company in this

space and i want it to be us the things we're investing in right now will allow us to do that and that is what is important. so the amazons and the facebook and the apples, they're in the space. jeff bezos made a big bet on alexa to say this is the way -- >> yes, he did. >> but it can't just be amazon and alexa but other companies have to have access to that technology. >> and you could be that source. >> who else is providing it. >> no one else is. >> and ear we're the largest company and we're not big tech but we could go ahead and go after them and define a space and win it. >> i tell our viewers, look, the stock is down over the idea of investing more not because they failed because the top line was -- >> it is terrific. >> that is rob locascio. do your homework and take a look and understand some of the analysts and how they feel but the transcript is very positive. "mad money" is back after the break. imagine traveling hassle-free with your golf clubs.

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i don't want to profit ear off an epidemic that killed 2,000 people but we need to see how it is changing the world and some companies are benefiting because they benefit from keeping us healthy the first that comes to mind is clorox and this covid is persistent and some say it lasts for days and one product to kill it and that is the surface issue is bleach and that is why i carry clorox wherever i do. i don't think there is much choice you can't afford to have wipes because of the surface issue you also know the bleach could kill it on contact if they touch the virus. so you have both wipes and bleach now here is what is important. i can't recommend cost on this because the bleach in the wipes are just a small part of the

repertoire the company gets 34% sales from home care and laundry and these products are a subcategory if they are struggling outside of home care then the stock would be untouchable but the weakest is bags and charcoal and 21% of sales and a strong enough driver could offset that. stocks are well run and i think the stock is a buy which is why it is an integral part of my charity trust as i've been telling members of the action alert plus.com club i talk about this. i say this is a product that, well, i think you got to have. we know that even the w.h.o. says it works. second winner is zoom video. now every company i talk to with substantial exposure to china is thinking about installing zoom software and stay in touch with people working from home which is why people are supposed to work that is the new rule we spoke to ceo eric quan and he said the phone is ringing off the hook

i thought it would go higher in the interview and it did next to nothing. now it is on the move. up 6% today. zoom is at $96 and i imagine sales slowing down when the virus starts to spread beyond the epicenter. i wish i could recommend cisco but that is a large enterprise and not large enough to move the needle for a big company like cisco. third there is teledoc from the your own home. people are realizing the benefit is why it went up 5% you should have bought and gilead, a drug company with the best collection of anti-virals in the market. they're the ones who cured help tig -- hepatitis c. if you want to know what to give people from covid, it is gilead. ip think they could probably fail because this seems indestructible in virals

what should you avoid. the surgical mask but i don't think it works because the mask won't be enough to offset the weakness it is the opposite of clorox i know that is a short list. this virus has been a contributor to a slowdown in the global economy it doesn't lend itself to goods that are working. gilead on hope and that is about it chuck in tennessee, chuck. >> caller: jim, thank you for all you do. >> of course. >> caller: hey, i have a small position in bbby i've had it for about two months what is your thoughts on buy, sell and hold -- >> my answer is absolutely buy i've been steadfast. i know the shorts are never going going to quit. i like the ceo people don't understand that ridiculous preannouncement that he had was worthless he didn't need to preannounce. i want to know who his lawyer is so i could tell them they ought to hang up and move on

because they're not doing any client any -- any hope whatsoever the company did announce a big buyback and they have a strong cash position. i'm looking at some of the things they said and i wrote $600 million share buyback and let's think about that for a second before we dismiss it like many of the shorts will. $600 million share buyback and the company is valued at $1.4 billion do you want to buy or sell with 43% short. how about going to sherman in california >> reporter: booyah dr. cramer hello from sunny palm springs, california. >> thank you. >> caller: is right now a good opportunity to buy more shares of tyson tsn. >> so it acts horrible i could tell when it acts horrible that means you should sell however i believe in the thesis that they've got the food and china needs the food but there

is a possibility that china they can't go out or whatever, the stock acts terribly and they did have a bad quarter and i think they should try to explain why it was bad it is not clear to me and i think the stock is a buy my travel trust own it but i'm not pounding the table because there is something clearly wrong with this stock or else it would be going higher. as coronavirus fears persist, i think clorox and zoom video and teledoc are buys there is much more "mad money" ahead as the 2020 presidential race heats up, campaigns could be right targets for disinformation and i'm talking with one ceo working to protect all of the presidential campaigns in the 2020 election cycle. don't miss my sitdown with cloud clear. and then the greatest hollywood ipo that wasn't but what does endeavor say about the decision to pull the public offering and then tonight's edition of "the lightning round. so stay with cramer. at leaf blowers.

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some exciting cloud stock that had the miss fortunate of coming to the ipo and it is called cloud fair. a company that helps businesses run the websites and make them more secure and enhancing performance and rolling out a bunch of different content delivery into one seamless platform this is exciting shortly after it became public the stock spiked from 15 to 22 and then dropped back to 14, 15 in october and answer then it is working back up to 17 and that is where it closed today but the company is doing great cloud fare just reported excellent numbers last thursday and bullish for next quarter and the full year but the stock couldn't get any traction. it is down since it reported so is wall street making a mistake or is there something i'm missing. let's take a closer look with

matthew prince and the ceo of cloud fare to get a better look. welcome to "mad money." >> booyah. >> here we go. this is your first time on so i want to give you the floor to talk about what cloud fare does and why it is different from others in the space. >> so cloud flair is the service that makes the cloud possible. when we started the company was that the internet had some core problems and need tods be secure and reliable and fast and the fire walls and load balancers didn't work in the cloud there was nowhere where you could ship a hardware box to box. and yet you still needed to solve those problems so at cloud flair we built one of the world's largest networks, in 200 cities worldwide to solve those problems and that means stopping 50 billion attacks every day for our 2.6 billion -- excuse me million customers and 26 different million properties

that rely on our service. >> and you have 51% revenue growth but what i thought was most interesting is the election. that you guys are big in making the election secure. i think that is a great thing to talk about. >> one of the things that we saw in 2016 when a lot of technology companies platforms were being used to sub vert democracy was that we could play a role in protecting it and so we worked with different political campaigns and with u.s. both local, state and federal election officials to make sure that they could use our platform at no cost to keep their services online and available. we couldn't have built cloudflare without a stable and functioning democracy and os duty to help protect that. >> and i think you make this acquisition, the s-2 systems acquisition in january and that helps the idea of security which is important and everyone is crazy about it. >> one of the things that we've seen is that there is literally nobody that likes their corporate vpn. i don't know what you have to use here at cnbc but it is a

pain to get it up and running. so what we launched was something called clauoudflare fr teams and to say how can we use our threat data to keep our customers safe online and make it so you could have ays positive experience and what is we launched a version for free for consumers that are out there so if you go on on app and look up 1.1.1.1 which is the easiest ip address you could be safe and use the cloudflare network. >> and people say are these just another acami. that is not a fair comparison. >> they are someone that we've admired and what we did was we started with security first and built a network to support that. i think acami has seen what we've done and coming around to us over time i think there are five global networks that will matter cloudflare, acami and google and microsoft and amazon and those are the networks if

you are online and you have to rely on them and what is powerful about us is we're only two that are independent from the public cloud. >> you have 10% of the fortune -- of the fortune 1 thousandment that thousand and that continues because you have 95 and -- we don't have the 2019 figure. >> there are 550 customers spending over a $100,000 a year with us and companies across different sectors and industry if you look at big cloud companies that you admire that i admire like salesforce, shopify and zen desk and hub spot. >> plus you're getting consumer packaged goods which is the holy grail of what we're looking for. >> this last quarter on mars which was a huge -- >> mars? >> they signed up for cloudflare because they were worried about they don't want to give all of their data to an amazon or to a google -- >> exactly.

>> so what cloudflare can do is be that independent network that sits in front of any of the public clouds and lets you as a business not have to put all of your eggs in the amazon basket because you never know what product amazon is going to launch tomorrow and be competitive with you and cloudflare is an extremely easy to use way. >> and versus google and azure. >> what they want to do -- mars wants to hake sure they were able to move between those two -- >> and you say that in your -- in all of your documents it is about going back and forth. they could have that luxury if they want. >> that is right don't get locked into any one of the public cloud providers and what we are is we make it easy to move between and mars wanted to replace the legacy hardware who we're competing with are the legacy hardware vendors that were selling things that were expensive in terms of a capex spend and also in terms of maintaining the people just to make sure those boxes still

work. >> and you mentioned sales force and maybe they're doing the same thing. >> i can't speak to they're strategy but they've been a terrific customer and we admire them if you look at where cloudflare is today it is where salesforce was years ago and same market cap and same number of employees and we're trying to follow in their footsteps starting with consumers and moving up over time. >> i want to mention lockup expired february 19. so we don't know what will happen or who will sell or not i expect that a lot of them won't because your stock is so low but i want to oint that out so people didn't say how you could not mention there was stock coming on the market. >> i'm not selling any shares tomorrow and i don't expect to be any time in the short-term. and when we've talked to who our largest investors are, they believe in the vision of this for the future and there is a lot that we're just getting started. >> i agree i wouldn't sell. that would be a big mistake.

all right. that is matthew prince, and chair of claude flare. i i was thrilled that he came on the show because it is such a good story in a year where everybody says everything is overpriced not everything is. "mad money" is back after the break. you ever get the urge to go a little crazy?

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>> announcer: lightning round is sponsored by td ameritrade it is time it is time for "the lightning round. and then the lightning round is over are you ready skee daddy rob in new jersey. rob? >> caller: booyah jim from new jersey. >> what is happening my friend >> caller: not much. i would like to first thank you for your knowledge and as an investor over the years here and i would like to ask you about a high dividend yielding stock underperforming by a big brokeage house on february 7th the stock is dupont. >> dupont is now run by ed breen. it looks like the previous ceo is now gone. why is he gone because he didn't deliver and it

is not anything, it is just temporary so therefore i think i believe there is a down side i don't think there is more than that let's go to mike in west virginia mike >> caller: jim this is mountain money and i like booyah from west virginia. >> i like the gorge there. >> caller: let's talk about kehmors, the spinoff from a couple of years ago. beat the street by 14 cents last up week and dividend over 6%, what are your candid thoughts high priest. >> i worry about the -- there is liability there that is actually could hurt dupont. i just mentioned dupont. i'm not a fan because i don't like the commodities and there are some issues involving a verdict that could come up soon so take a pass there that is a form of pollution that does hurt ground water to lee vonn in new york.

>> caller: how are you >> i'm good. how are you. >> caller: i'm good. first call and my question for you is about ericson communications because it is possibly a 5g turn around and -- >> well ericson is okay. my problems with ericson and nokia are these are companies swamped by -- crushed frankly by huawei and the western nations in europe don't seem to be interested in helping their own which is wrong susan in california. susan? >> caller: jimmy choo, thank you for searching for great advice. >> chill man is in the house what is up >> caller: i've been watching a fortune 500 science and technology lead got a contract with cdc and goes head and head with northrup and lockheed and just rose $11 today in the middle of a down -- it is named ldox. >> such a winner we have liked this company ever since the spinoff continued

to like it it is not done going higher even though it had a big move to jerry in texas, jerry. >> caller: jimmy chill. >> yeah. >> caller: a big booyah to you from el paso, texas. >> nice, i love el paso. one of the most fun towns. let's go to work together. >> caller: all right so i'm looking at this company down about 10% from the 52-week high as of of now. they have a good business and they're imaging solutions as well as networ they're down on the network services the company i'm looking at is sony >> sony is a great company and the japanese market is taking a little bit of a header because people are worried about coronavirus. people feel, including dr. gottlieb who put the kibosh on japan. i'm willing to stay side-by-side with sony. let's go to rob in pennsylvania. >> caller: professor jimmy

chill. booyah. >> i've been so friendly online. just block, block and people to me what is going on. >> caller: what is your take on cherry hill mortgage >> we don't know what cherry hill really owns that is the problem. it is another one of the black boxes. i do not like the black box of mortgage companies and that, ladies and gentlemen, is the conclusion of "the lightning round.e >> announcer: the lightning round is sponsored by td ameritrade fifty-six straight, come on! that's it, left trade right trade. come on another trade, i want to see it! more! ♪ 80s-style training montage? yeah. happens all the time. ♪ and now for their service to the community,

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when that lousy we work ipo imploded deals got canceled and sooner or later they'll be back and i want to check on one postponed i'm talking about endeavors the parent company of wme the talent agency known as william morris and the sports media and fashion company and ufc. that is right. the profissional mixed martial arts league on fire. i'm a client of william morris so i speak from experience when i say they are great at what they do. now endeavor was supposed to become public and they got pushed back on the ipo market turned hostile and i think it was a good decision to drop out. i'm betting they'll be back. probably sooner rather than later and a better price than they would have gotten and that is why we're thrilled to have ari manuel the ceo here tonight. welcome to "mad money.

great to see you, sir. >> hey how are you. >> okay. so a lot of people say you're a talent agency. when i look through your financials, that is like a legacy view of your company. and yet we're somehow unable to change the dialogue. why is that? >> well, you know, i think where you start is kind of how people see you. what we've done over the last -- march 29th is 25 years where we've changed the business into an operating business kind of a aware of the dynamics because of the entertainment business of how we operate most of our business at the time when with we started, when solar light came in, about 80% was in the representation business. like the sports or people in the entertainment business about five years ago we decided the mix would be better at 50% economics and things we own like the ufc or freeze or things like that and 50% things we represent. so we're a very fluid business

but i understand it. i started in the agency business there was a show about me. >> well, a show about you is funny. and not necessarily from what i can tell accurate. but -- >> back in the day >> maybe so. but i want to talk about is that i've always felt you have a unique view and vision if somebody wants to do something, you should take a stake in it. >> here is my opinion about it we don't have any legacy infrastructure, i don't have to defend the cable channel we're in the best position for where the entertainment business is going so if you just take one vertical, the television business, there is $150 billion eco-system in the business whether it is abc, cbs, usa, cnbc there is an additional 35 to $40 billion coming into the business which is it a third more money coming into the business every year over the next five years. that is -- just television that is a really good place to

be and that is just domestic >> and in ufc we know has been a tremendous source of just programming. for someone that was able to make a lot of money with it. >> it was great on fox we're having the best year we've ever had with the espn and our partners at disney and espn plus i think they're doing great too. so it is incredible. >> so let's talk about what happened with the deal i know that this hollywood reporter -- i don't know if they are dealing with the guy who used to be like the old guy from the hbo show but dram aftic last minute decision to pull the plug was a embarrassment but the temporary end of hope of raising capital to pay down debt and create a morale problem for some 7,000 employees who hold shares and i've been convinced by the leadership to sit tight. that is about as negative as they get what do we say to the hollywood reporter >> here is what i would say to you.

we got caught in this we works growth overhang. we weren't like other people we didn't have to go public. we were raising 500 $600 million we averaged double-digit revenue growth, double-digit ebidta growth so we're doing well. if you saw recently, we hit or ebidta numbers in the filing we hit it last year. we did the acquisition of on location which we'll talk about. >> right >> we gave a dividend to everybody at the company because we had the cash flow to do it. we reduced ---ing with well delever based on normal ebidta growth we're in really good shape i was not going to not -- i was not going to hurt my partners that invested in me and backed up by a bad ipo market. >> so how about this acquisition done which you were supposed to not have any money according to hollywood. >> correct i guess they were wrong. >> and the acquisition to me seems to be a great way to be able to do a lot with sports

maybe even gamble. >> well here is what i would say to you is, we're in the business with the nfl, with one of the great assets of all time and the nfl rolled into our acquisition. >> rolls their what? >> equity into our -- >> right. >> and we have a lot of events whether it be ufc, fashion, into creating an experienced business, starting with the super bowl and our partners with the nfl and all of our assets globally that we could bring to the table. >> is it possible that when you do try to become public again, that there is a shift in the amount of revenue that comes from agent versus programming that would plaque it so that you are a unique programming company at a time when the world is thirsty for programming? >> here is what i would say to you. 50% of the economics comes from representation locked in long-term deals and 50% comes from things that we own. at one point you and i talked about in the medical area accompany that kind of had a --

a balanced approach. iforgot the name of the compan that we discussed. we're the same way we're flexible we look at things on a global basis. sometimes with we just represent it, sometimes we represented and then we acquire it like the ufc, like bull riding, like freeze. and that is the way we look at the business and i think it is for where the world is going, i think we're best positioned as one of the guys best positioned in the entertainment business. >> know that abbvie was the -- was the drug part and the device part and people said we could make more if you split it. to me that is not the right time you're building critical mass and pay down debt but it does occur to me that the idea that you are an agency is just the way it was. >> it is a very small piece -- >> right and the software is a service business for entertainment. >> some of it is, correct. >> but then you could accumulate more and that is the smartest way to make more money and no one has that model

>> it is very hard to be in this place to have that model. >> exactly right. >> i don't think any of the major studios could do it and disney has done a great job in acquiring asset and growing their business. >> and what happened to the old -- from the tv show. >> a lot of meditation >> wow okay i'll give that a try it is ari manuel ceo of endeavor dpen they are my agent i want to be sure that you know. they're private. but that is full disclosure. it is really important "mad money" is back after the break. legendary terrain in telluride,

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special report, yes, when the coronavirus outbreak tell us about my friend tyler mathisen is coming up next i like to say there is always a bull market somewhere and i promise to find it just for you right here on "mad money." i'm jim cramer se good evening everyone, i am tyler mathisen it has been 51 days since the world's health organization alerted to this health crisis. the who confirmed 92 kaess of human to human transformation. >> human to human spreading increases. tonight china releases a new report showing which age groups are most susceptible to the killer virus it is not the usual