ulta >> dan ethan >> yeah, keep an eye here, just one final chat out, steve was a great one here we're going to miss him. >> gu >> guy, we got you back. my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach, put it in context call me 1-800-743-cnbc or tweet me @jimcramer markets seem reasonably priced, until there's not enough money to keep buying the stocks that lead us higher. and that is the brutal lesson

we're learning in the wake of the shocking ipo yesterday where buyers seemed indifferent to the share price if you wanted to buy snowflake, you had to sell something else, which triggered a selloff in the nasdaq, and that spread today, with the dow dipping 130 points, and the nasdaq losing 1.27%. a lot of people call into question what they're doing paying such high prices. we saw the spectacle of a stock trading at more than 100 times, not earnings, but sales. don't get me wrong, snowflake should not be about making money, it should be losing money. it makes sense for management to spend fortunes to dominate the cloud data management business you want to win, you've got to spend. snowflake is not the issue, though the ceo will do everything in his power to deliver for shareholders he's got an amazing track

record i totally understand why people are willing to pay for the nose for his stock. i liked it even as high as 125 but i jumd eunderestimated the . i heard that the underwriters were the problem the initial price range was 75 to 85. they priced it at 120. i used the same reasoning. i think they looked at the demand, decided the value like the single most expensive stock which is zoom, and assumed snowflake deserved the same value. still, that $120 price tag is a stretch. as zoom is growing a bit faster than snowflake and amazingly profitable it could have been crazy to price this thing higher than zoom in they went as high as they could go. should they have flooded the market with more supply? i don't know

they told 28 million shares. that's not chump change. as someone that's been on both sides, the underwriters did nothing wrong here the problem was with the buyers. they lost their minds. some of this is because when a hedge fund gets a piece of the deal, they rarely get enough you want a position big enough to move the needle, you have to buy more in the after market and you're not as sensitive to price. if you've got 50,000 shares at 120, and then bought another 150,000 at a high price, call it 180, then you have a $150 cost basis, which is expensive, but not insane but there was too much demand for that play book to work snowflake hat the blessing of salesforce and berkshire hathaway the ceo of salesforce practically invented the cloud he got a piece of the zoom ipo,

today. berkshire hathaway, warren buffett has never been a big fan of ipos, until snowflake when berkshire hath aware wants a piece of snowflake, you know it's going to be huge. all the high flying momentum stocks got wrecked yesterday and today, which led to the vicious selling today. you see the day rally back, because that's where the cheap stocks are maybe you wonder why this bothers me so much it's just one ipo, right wrong. snowflake is the first in a parade of ipos i've been warning you this market is about to be flooded with dealing and none will be as good as the first one. i can tell you when the cycle comes next we get a flash flood of ipos but

lower quality than snowflake so what they will do is sell a familiar suture high flyers, then move into other tech stocks and start selling those. facebook, alba fete. hedge funds will sell them to pay for the next snowflake sometimes it feels like i'm the only one worried about this ipo deluge i saw a piece that talked about how we're looking at a record number of deals, and it will overwhelm the rest of the market, especially the digital stocks couldn't have said it better myself then i looked at the date the piece was written. it was november 30th, 1999 21 years ago and it was by my friend, steve, the genius equity strategist

the massive nasdaq was building, and he was screaming for you to look out he followedthat one up with tw more pieces. there was "jailbreak, the coming blood of expiring ipo lockouts" on march 14, 2000. and then "no parole for good behavior" on april 3rd i was running money back then, and his research was instrumental in getting me out of the market. we talked every day right before the time then convinced me to go short in april of 2000, because he was so worried about the jailbreak. we had a great year. that said, i don't think we're looking at a repeat of the dot com era. but just like back then, we have an ipo problem like now, there were too many underwritings followed by tons of secondary offerings of course, there are some big

differences. this time around, the companies coming public are excellent. it's just the stocks are too expensive. there's less excess capital floating around, which might cut the cycle short. finally, the fed is your friend, which makes it easier to own stocks and that matters that's the so-called no other alternative position and who knows if we get a stimulus package but the action today was reminisce se reminis reminiscent of the past bust ipo cycles dow chemical raised earnings, or 3 m, they all did well look, i'm certainly not trying to scare you i expected a correction, and that's what we're getting here that's why we've been raising cash for my charitable trust have spent weeks tell youg to do that

i recommend picking up some of these cheap stocks being brought down, whatever it takes to get money in there the bottom line, we aren't going to see a repeat of the dot com crash, but when i see snowflake and others, i get concerned. doesn't mean you should give up on the market. but as long as these deals keep coming, the tech stocks will indeed lose the luster they have gained in the last few years through no fault of their own. steve in maryland, steve >> caller: hi, jim boo-yah. >> boo-yah, steve. what's up? >> caller: i wanted your opinion of toll brothers over the next 12 months, stock symbol tol. >> i like tol very much. it's only a $5 billion company they have done a lot to make their organization lean, mean, fabulous homes, a lot of move-ups, really terrific as part of in stay at home economy.

and it's at 12 times earnings. i think you have a winner. mike in california, mike >> caller: hi, jim big fan, love the show i want to know about a great e commerce company the executives and the upside you see in the next three years that company is go daddy >> it's a good company, only $12 billion company, doing a lot of good things. you're totally involved with web design it's well -- look, i happen to like wicks more. but i would love to have go daddy on to talk about their stock. mike in new jersey, mike >> caller: hi, jim, mike from new jersey shore long-time listener appreciate what you do for the individual investor. >> thank you >> caller: my question is on a company i have invested into multiple tiles it's a cloud-based business provider, cloud garo just released better than expected earnings, which was

during the last pullback and they also -- statements were made a few months back by the company they had received interest from a prospective buyer. >> we can't -- you know, we can't buy stocks on the basis of what could be a takeover rumor i'll say this, it's inexpensive, but this is a business where they want fast-growing stocks even if they're expensive. that's the problem they don't have the growth that other people are looking for but they did beat the quarter. i don't think it's dangerous i historically have liked it frank in arizona, frank. >> caller: boo-yah, mr. cramer >> boo-yah >> caller: a big boo-yah to my arizona cardinals with a big road win in that toughest division in the nfl. winn casinos i'm looking at the tourism ban being resumed in china with no restricti restrictions china's golden week is october

1st through the 8th, where 75% of the hotels are already booked with 75% capacity. 25% of those are booked full >> right >> caller: so all signs to me look like it's time to go with them >> the stock is down more than 40%. i'm thinking much more about penn national because of some thinking i've done about regional gambling rather than chinese gambling but i have no problem buying wynn, because the ceo has done a good job fighting the covid problems okay these red-hot ipos are getting me a little concerned, but there's plenty of areas that work you know there's always a bull market somewhere could a telehealth company be what the doctor ordered? i'm focusing on amwell health. and down about 20% for the year, but does it have a point to

prove in this market i'll talk to the ceo but first, does remote work have staying power? i'm going to give you some thoughts 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 email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. the lexus es. every curve, every innovation, every feeling. a product of mastery. lease the 2020 es 350 for $359 a month for 36 months. experience amazing at your lexus dealer.

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that ridiculous snowflake pricing debacle, too much money chasing expensive stock, we may be missing a much more important story. i'm talking about the staying power of the stay at home thesis i know we spent months talking about the stay at home economy, but that doesn't mean we're giving it enough credit. it's popping up all over the place. in a span of 24 hours, i had four experiences to suggest working from home may be the new normal the ceo of box, the cloud-based data storage company that had a good quarter what spurred sales people working from home who needed a secure way to share data with their colleagues it was a strong tail wind and he said it isn't over second, we also had the ceo of campbell soup. this was an important interview, you had to parse it. he said something on the conference call when he reported earnings that confused a lot of people he seemed to be saying things could return to normal after the

big period of pandemic induced stock buying ended that would be bad for campbell's, but he missed the mark on what he was saying what he meant is that campbell soup has so much demand, chiefly from the stay at home set, they've been having supply chain issues by back to normal, he meant the supply chain issues would be resolved and all the goods people want would be in the store. think about what the stay at home economy means for snacking. when you're in the office, you have to go somewhere in the building to get snacks now, though, if you want some pretzels or potato chips, just pop over to the next room. i think the cash flow here is immense. i know campbell's is sleepy and no zoom, but i'm betting it's too cheap. and yes, the improvement of what had been a tattered balance sheet. last friday, i told you to watch

the stock of herman miller, the fancy maker of furniture their last quarter was terrible, because no offices were buying new furniture, right but i thought they would be able to make a huge comeback now that people are investing in home offices. if you got a sit-in chair all day, it might as well be an ergonomic chair. when they reported today, listen to this from the call --

he told us the housing market is booming with the home office being a big driver he explained the pandemic is causing a housing boom as people move to the suburbs to escape from urban covid hot spots companies have figured out that it might be both cheaper and safer to keep their workers at home sales have held up, so why bother bringing people back? office space is expensive. why shell out all that money if you don't need to? and without a vaccine, people are still getting sick at the office have you been reading those stories? better to be well, even if it means working from home even if it's as productive as working in the office rod in florida, rod? >> caller: yes, what's up? >> what's going on >> caller: i'm doing really good how about you? >> excellent day

probably one of the finest other than yesterday what's going on? >> caller: just wanted to get your take on chevron, what do you think? >> if you have to own a oil stock, only two that i like, chevron for the dividend, and i like parsley for the growth. but that's it. and i'm not a big fan of the oils i have said that i don't think they're investable any way, companies have figured out how to make remote work to their advantage. all these stay at home moves have staying power with companies like these, which i think are doing very, very well. stick with cramer.

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were priced to spike out of the gate viewers know that this does make me concerned because as we get flooded with these deals, that puts downward pressure on the high flying tech stocks that have led us higher for months witness the nasdaq getting hammered yesterday and today but even as i'm concerned about all these initial public offerings, i want to be aware of the best ones, because sooner or later we'll get a market wide pullback that's how some of the best investments happen, which brings me to today's ipo. it brings me to amwell here is a company that's in the telehealth business, and it's got a red hot spoke. amwell makes it possible to see your doctor over the web rather than go to their office during a pandemic we know this is a terrific business because it's similar to the amazing teledoc. but teledoc decided to merge with the digital health code for people with diabetes and

hypertension although i have to tell you that combination i like very much amwell is the sole publicly traded pure play on telehealth during the world's worst pandemic in the last 100 years it's also got an expensive stock, which makes me hesitate to recommend, even though i like the company so much. there's always a difference between the company and the stock price. if you know that from watching "mad money," then you know that we have this problem with am amwell they powered the digital care program of 55 different health plans, covering 36,000 employers, and more than 80 million potential patients, along with 150 of the largest health systems in america that encompasses over 2,000 hospitals. they have a smart approach to this business. amwell primarily goes after the enterprise side of the business. they make their platform easy to integrate into existing software companies for insurance companies and for doctor's

offices. simple, easy, best you know i've been a fan of this for a long time. but covid-19, it's been a game changer, but i liked it before covid-19 in january and february, they were seeing 5500 digital doctor visits per day in april, it surged to 40,000. average wait times were still under ten minutes with the increase just like with snowflake, amwell has deep pockets it's none other than google that shelled out $100 million for a 3% stake in the business as part of that deal, amwell is using google's cloud for its web infrastructure so i have liked the changes that i've seen in google cloud. more importantly, this has become a phenomenal growth story in the age of covid. last year, amwell had 36% growth, nothing to write home about if you compare it to the

hottest stocks but since the pandemic, the business has caught fire in the first six months of 2020, amwell has 77% growth. that undersell what's going on here, because the first quarter was mostly normal. for the first to second quarter, amwell's volume more than quadrupled of course, the pandemic is temporary, we hope but i think we're headed to a world of telemedicine any way. the virus just moved up the timeline what matters are the emergency rules adopted by insurance companies with medicare and medicaid thanks to covid-19, doctors now get reimbursed at higher rates for digital health care. if rates go back down when this is over, the industry will be less enthusiastic for telemedicine, which would be major problem for amwell but right now, they're raking in the revenue. they've had a lot of money to

expand but the gross margin, it dropped from 48% in the first half of 2019 to 37% in the first half of this year and their operating margin is hideous. they've gone from losing less than 50 cents per each dollar to losing 93 cents s per dollar it excludes stock-based compensation is moving in the right direction. it's a company that was in the right place at the right time. but they've done a great job responding to the pandemic and i like the management very much. once they're integrated, they'll have tons of opportunities to upsell their clients with more solutions. but they're still losing a lot of money if rates come down after covid is solved is a major problem the company raised its last funding round in the spring. he said, it's possible any type

of funding might not be available quite soon, presumably that's the reason they're coming public right now the other big negative is competition. there's no real mode protecting amwell and other companies who want a piece of this industry. there's not much stopping a zoom or tulia coming in and taking a share. there's a price i would be willing to pay for amwell but nowhere near the ipo the price of 18, which i like. there was the $4.15 billion company. when it opened at 1:00 p.m., it was trading north of 25. we assume the company grows at 70% this year, right now amwell is trading at 21 times this year's sales remember, there's like 25 of those companies and i think they're too expensive. a similar valuation to high

flyers like docusign, and more expensive than teledoc which trades at 16 times sales it's already baked in at these levels, so too rich for me i like amwell the company, but if you buy the stock right here, you're betting the pandemic will stick around for a lot longer than many think or the digital reimbursement rates won't be lowered again. if you want to own this one, you have to let it come in, because it's too hot right now i would be more bullish if you got a pullback to the mid to high teens for the moment, you know what you have to do you have to keep your bat on your shoulder until we get better prices. let's go to new jersey onure? >> caller: big boo-yah from the green garden state, jim. >> how are you what's going on? >> caller: i'm doing great

my question today, jim, is about a company you recommended some time ago i never invested in the telemedicine field until i heard from you the big merger coming up with teledoc health my question is about lavongo health >> i love this merger. we did have them on, when the merger occurred and they broke the news on our show and i think it's just terrific i know that there's a lot of -- it's trading kind of squishy, but at $13 billion, i want -- you should own it. it's a good situation. both companies are excellent robert in maryland, robert >> caller: hey, jim, this is robert from bel-air, maryland. i was just wondering what you thought about rmd and i'm a long-time listener of you. >> i think the c-pap business is good i have to tell you, the stock has been acting somewhat

curious, and some people cut their price targets. some people raised them. look, i have to tell you, i have been a big believer in this company, literally since it came public there's no reason for me to back away i like it and i think you're fine if you believe the pandemic is going to stick around and want to own amwell, please let it come down a little it's just a little too hot right now. much more "mad money" ahead. hackers are eyeing students. and today's selloff, and all your cars on rapid fire in tonight's edition of the lightning round. so stay with cramer. incomparable design

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until the last few weeks stshth cybersecurity stocks seemed unstoppable. it's harder to protect your network when everyone is working remotely but one stock has lagged the group, consistently. and it's proofpoint. they used to be focused on protecting email, though they have made a bunch of cloud acquisitions and evolved into a people centric approach to security they're also monitoring apps and log-in systems we know proofpoint is doing well when the company reported in july, they knocked it out of the

park since then, it keeps tumbling. it's now at 103. apparently, proofpoint is saying it's inexpensive because late last month they announced a $300 million buyback. management reiterated the full-year forecast which is higher than analysted predicted. maybe this is the rare bargain, but let's check in with the ceo of proofpoint and get a better sense of where the company is headed welcome back to "mad money." >> thank you, jim. >> it's a riddle to me you have a buyback you beat the estimates but at the same time, analysts are saying it's just better than fear, that's all it is, and they're still awaiting, according to morgan stanley, just awaiting the growth inflexion. now, i don't know, i think you're growing pretty well be it is a conundrum your stock is down to the point you needed

to buy back stock. >> we have executed well through this whole period of covid i'm proud of the team and if you look at our q-2 results, we were pleased with those results as you indicated, the board did authorize a $300 million buyback of shares. we looked at the balance sheet and fell like the right way to return value was to do that $300 million buyback. we play an important role in this work from home economy. so we think we have a good setup. and we have a long-term view and a great opportunity we have in front of us. >> the stay at home economy seems to produce, to use your term, a huge number of imposters. i find that i have emails now that i think are from legitimate -- they're more sophisticated than ever. what is it about it that's stepped up the bad guy's game? >> well, i think it's working. so what's really happening on a day-to-day basis, companies are

getting these impostor emails. it looks like an email from the ceo or a cfo and it's targeted at an individual to redirect a wire or paycheck and these are just threat actors doing what they do well, which is trying to steal money from companies. we're playing a critical role today in helping companies prevent these attacks. >> now, one of the things that you have taught us is that people are the problem here. data doesn't just walk away by itself how can you help people not hurting their own organization >> one of the big investments for us has been to help organizations protect the data that people create so we're giving companies more visibility, more controls that ensure that when you're sitting in front of your couch working from home, that you're not

treating data in a way that's going to hurt the company. and for those individuals that are doing something malicious, we'll help companies find them >> say you do get an email from the ceo, the one thing you're not going to do is figure out whether it's bogus, because that ceo wants an answer. so i don't know how you can really teach this. because i think that you would be worried about your job if you didn't respond quickly >> and that's the tricky thing we need to block those so that individual doesn't receive that message that is an impersonation. so that's how we're applying new innovations in the space to be able to identify those very sophisticated attacks and block them so that users is not trying to figure out is that my ceo asking me to do something i shouldn't do >> do you think it's a good thing people are working from home or will it change and go back on premises >> you know, i think there's huge benefits in collaboration, but i do believe fundamentally that this work from home economy

that we're living in is going to change the face of work and you'll see a blend and security leaders and organizations will have to figure out how do you defend people sitting at home doing their job? >> you're making it sound like they haven't decided yet, that some companies aren't spending on proofpoint because the vaccine is coming and everyone is coming back i don't hear you saying that >> i just think we're going to see a different world when we get back to whatever the new normal is. the one thing that's super clear to us as a company and what has been driving our growth is threat actors are targeting people and those people are sitting at home, sitting in the office and the security landscape is going to require a different way of thinking. we feel like we're well positioned to take advantage of this broader change, that we do believe is happening now and will continue to happen. >> do you think these institutions understand that email is the real weak point in

their whole organization >> you know, it's interesting. i think the fact is that email today is running the business process of most large companies. it's the way -- the standard way which business processes are happening. as a result of that, threat actors are smart they're going to insert themselves in the middle of that and divert a wire, try to getred that's what they do. so while there's been skype and things like that, email is still running those companies. we're working also with companies to ensure that if there's threats coming in those new collaboration systems, we can block them, as well. >> i hope you can. a lot of us know when we see these emails these days, boy, they look like the real deal gary steele, ceo of proofpoint, thank you for coming on "mad money. >> thanks, jim appreciate it. okay inexpensive stock, buying back stock right here and the main thing is, look,

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retire early and spend more time with his pal, peyton. and their new band. exactly! yeah. don't forget the band. i haven't. it is time it's time for the lightning round. [ indiscernible and then the lightning round is over are you ready, skedaddy. let's start with justine in florida. justine! >> caller: hi, good evening, cramer how are you? >> good evening. >> caller: i wanted to ask you about next era energy. >> oh, that's the fastest growing best utility you want a growth utility, that's the one you want a little more safety,

you do con ed. let geese to greg in new york. greg >> caller: boo-yah, jim, how are you? >> doing well. how about you? >> caller: all right thank you, thank you got a question in regards to apple and peloton, are we in a good situation >> i like peloton, but i think it's run up way too far. there's a stay at home exercise community and it issen e an ecosystem. i don't like the risk/reward here jen in florida, jen? >> caller: boo-yah, jen from florida. >> how are you >> caller: i'm good. shout out to all social workers. what is your wisdom on flgt? >> it's a -- look, anything that's about diagnostics is incredibly hot but remember, i'm an old fashioned diagnostic guy i like thermo fisher but you want a little spec, that

works for me let's go to matt in michigan >> caller: boo-yah, jimmy chill. >> boo-yah >> caller: my question is your thoughts on my stock, erit >> no, no, no. the king of that is samsung. you can't invest in that that stock has been a rocket ship let's go to greg in wyoming, greg >> caller: boo-yah, mr. chill. >> boo-yah >> caller: first time, long-time club member. >> excellent what's up? >> caller: i've got a crush on one of my holdings, i need to either give me your blessings or break my heart cannon armstrong, hasi >> first of all, it's up nicely, but they provide debt and equity

financing. i like energy efficiency we have battery day coming up september 22 for tesla but i do not like any credit market right now look at what's happening with our banks. so i say no thank you. madelyne in ohio, madelyne >> caller: hello, cramer >> hi, madelyne. how are you? >> caller: i looked into you on squawk and "mad money. sometimes i feel like woody allen when he said i invest money until there's nothing left and that's how i'm feeling about splunk >> i think that splunk has good security it's one of those companies, people don't talk about it as much as they should, but it has a lot of things going for it in terms of analytics if you look at snowflake, you have to wonder if there --

splunk is a lot less expensive so you're in a good one. bill in washington, bill bill >> caller: yes >> you're up >> caller: thank you i'm ready. >> go ahead, what stock? >> caller: okay. >> you're on with jim. what stock >> caller: i'm so flattered. >> thank you what stock is it >> caller: clorox. >> okay. clorox is -- first of all, the ceo is retiring and i like him very much. i want to meet linda reynold right now, the market doesn't like the defensive stocks. we've got to give it some time, let it come in a little. i can't pound the table and i'm going to christopher in oregon, christopher? >> caller: boo-yah, cramer >> boo-yah >> caller: what are your thoughts on veil mining?

>> this is coming back, one of the reasons that caterpillar is up so great. people are talking about iron ore being great, copper. because china, like them or not, is enduring a boom that said, i still can't get behind them. i have other companies i would rather own, which include free port, which has not a stock, is better than them one more zach in georgia, zach? >> caller: hi, jim i wanted to know about the trade debt i have a significant amount in that stock >> i just saw jeff green interviewed. it was spectacular, but this is the kind of multiple to sales stock that i'm afraid is going to get hurt by the flood of ipos and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lhtngigni round is sponsored by td ameritrade oard. oard. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets?

yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪ with the icon that does the same. the rx, crafted by lexus. lease the 2020 rx 350 for $409 a month for 36 months. experience amazing at your lexus dealer.

the longest time we thought about the industry of casino gambling, we only had one thing in mind, the greatest gambling story of all time. we had many u.s.-based casinos and they were okay investments, depending you how much they did at the gaming tables they tried their hands in atlantic city but didn't bring in much money for them

but in the mid 2000s, sheldon aidleson and steve wynn opened casinos and that's mccaul. the chinese could lose fortunes. i have rarely seen a more profitable set of years, and i recommended them over and over again, and shying away from domestic operators as being no growth with too much debt and it worked and worked and worked until one day we got a new president, president trump he decided to take on the government of the people's republic of china. the result the greatest gambling story of all time came to a screeching halt you might say, it doesn't matter vegas is booming they could make it all up there. no way especially not with a pandemic

the casino businesses have been basically outlawed as a result, the stock of las vegas sands is now down 29% for the year the stock of wynn, one of the greatest investments of all time, no longer has steve wynn is down 42% of the year. that's a staggering loss but it was by far the operator in the business. but you know what people didn't count on, particularly the analysts two things one is that the regional casinos would continue to be popular and actually do better in the time of covid than the big dogs and second, gambling no, not casino gambling. actual wagering on professional sports now, i have long believed gambling could be a lot way out of the budget crunches

i thought that there could be ways to make it more excite by predicting winners and losers like on regular tv in the actual real gambling word with spreads and overs and unders and big money and, of course, fantasy. now, it's beginning to happen in a way that's extraordinary the ironic thing, though, it didn't happen with wynn or mgn it didn't happen with las vegas sands. it's happening with penn national game that's who is capitalizing on it penn national's jay snowden decided to go all-in on gamblin of all kinds, just when covid hit at the same time and he handled the pandemic better than just about any company in the industry, remarkably well done most important, he decided to join forces with an electric outlet, bar stool. that's the entertainment company run by erica nardidi, with a

terrific supporting cast now it's on the verge of launches its sports book and the excitement has driven this stock up 185% as investors realize bar stool may be the best and most efficient way to bring in wagerers, particularly young ones sboshgs ton s into the virtual casino. we caught up with jay snowden, along with erica nardini to find out the prospects on the eve o the sports book. i wanted to snow how snowden pulled it off. here's what he had to say. >> i think we do a good job, we know how to operate, we know how to deliver great service, whether it's retail brick and mortar or with these two in our digital products as we roll those out. this was an opportunity for us to reimagine what we do and how we do it and we have taken that opportunity, whether you're talking about marketing efforts or procurement non-gaming amenities, what customers want, hotel products

and we feel like there's some real structural change that we can pursue here. this is a transformational opportunity for us right now and i think what you're going to see as time goes is that the margin improvement opportunities are real something that regional gaming hasn't seen in decades >> you know what else has been difficult? the process of gambling itself i look at penn national's app, and i think it's going to be a winner dave portnoid, who said he will keep his new day job as davy day trader, explains it this way >> you really had to go out of your way in the past to place a bet, whether it was illegally with a book maker, which you shouldn't be doing, offshore casinos. so the element that somebody who maybe was casual can now do it easily will lead to obviously a much bigger market >> all right all that is well and good, but how much money can really be made here?

because that's the trick with the stock. that's what we care about. the analysts think maybe a $5 billion opportunity. but erica disabused us of that notion >> we're going to make gambling cultural we're going to make it the way we engage with sports. and we're excited to do that i think there's no limit on it i would put a t behind that number, not a b. >> that's t for trillion she explained while dave is barstool's star, for sure, it's a much larger entertainment company than people realize. >> we are now the biggest publisher on tiktok. we're the fourth biggest podcast publisher in the world we're the sixth biggest distributed media company in the world. so we continue to grow by leaps and bounds, because we're making content that's different our fans love it and we respond to that. >> here's the bottom line.

i like this story. i liked it at 30, 20, 10, i think that gambling is gigantic, and draft kings and this are the only games in town therefore, even a $10 billion valuation, i think penn national has terrific prospects if you believe, as i do, that gambling, legalized sports wagering, will be as big asth asthma -- big as mattel was 16 years ago, and gambling goes virtual all over the country, then i think erica is dead right. this is a colossal business. and the scarcity value here says if the stock comes down, it didn't run up too much for my taste. and you've got to takedvta aange of it and you've got to buy. "mad money" is back after the break. makes it brilliant. the visionary lexus nx. lease the 2020 nx 300 for $339 a month for 36 months.

experience amazing at your lexus dealer. a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management. and tailored recommendations. at cdw we get you're always yeah. i'm just not sure office drones were the way to do it. [ laughing ] drone voice: l-o-l. our market share looks good, but...

drone voice: where are the bagels? well, cdw can help you modernize your company the right way, with a scalable infrastructure from hpe, making you more efficient and secure. great. oh. [ drones buzz angrily ] let's find a different room. for transformation that works, you need hewlett packard enterprise and it orchestration by cdw. people who get it. we don't want froth or excess supply. at least we've got the safety net of low interest rates and the possibility of stimulus. but we need the stimulus if you think the market's going to keep going higher, because there are many stocks that are too frothy. so take a look at your portfolio. do what we did at the trust, trim back some of these high flying tech stocks and wait around it's okay. i like to say there's always a bull market somewhere and i promise to find it for you here on "mad money. i'm jim cramer and i'll see you next meti

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