friday carter >> consumer staples have started to roll over the trade is being short xlp, the spiders. >> tony? >> i'm playing defense with 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 money. my job is to entertain and teach you. call me at 1800-743-c nrnbc or tweet me we won't escape the savage tech

sell off until they realize they can't keep paying for things like snow flake because when they have to sell something else i think is why we have another bad day. dow dropped 245, s&p fell and nasdaq lost 1.70%. it bounced from the lowest percent. once again, we're reminded the stock market is first and foremost a market. and markets are government earned by supply and demand. right now the supply of new stock is overwhelming demand so the whole market just gets hammered until you trade for a living, you might now understand how this works the software a video game plan and they don't have spare cash lying around, what do they do? how do they get that piece

easy they sell. they sell the stock and companies that don't understand it anyway. if you have a stock on the deal and you flip it, well, that's free money free big profits and you got to take free money when wall street is giving it to you. take public at $52 if you got some at 52 in the deal it scored to 75 where you can cchaching. some mutual and hedge funds want to build positions so they have to buy more in the after market or there is no point in owning it, which means they have to sell more stock to pay. maybe they drop adobe or nvidia or it nicked in the morning and mid afternoon they started selling the fang names or

microsoft to get that position rounded out. if you thought unity would only open up 10 to, say, 20%, which is still expensive, you didn't budge it for 44% spike and that's what triggers the additional selling they needed to dump something else to raise the cash and the easiest thing to do is sell the largest stocks where the selling would not knock it down too much unlike the smaller ones. to put it another way, it's like a retailer stuck with way too much inventory there is no place to put it now that the new merchandise is coming in so prices get cut and cut and cut until they are low enough to entice the buyers back we're not there yet but i was happy to see smaller software companies i like rally into the close. maybe the selling is done. we'll know next week of course, it's not about over supply there is the backdrop. the backdrop isn't great the president of the united states wants to crack down on china and doing it threatening to shut tiktok, which is an incredible popular app among

america, not me. i have it on my cell phone now, he's talking about banning new downloads this weekend and shutting it down permanently we thought we'd solved this problem when oracle agreed to partner with a collision of walmart but turns out the president moved the goalpost wasn't enough. he says tiktok is a security risk unless it's bought from the cho chinese. that doesn't seem to be in the cards but they feel like they are giving away the store to get it and the president isn't pleased, which is why our game plan has to start with tiktok. because we need if you're a bull, that is, you need this resolution and this deal to be happening and we are in a deal or no deal situation if oracle and walmart can reach a deal with the white house this weekend, seems unlikely right now, then that would give this market a major boost and we need a boost with all the carnage caused by the ipo

deluge this deal will occur if the president thinks the market is going to keep going down, he wants to stop it look, i know it seems crazy a few big deals could destroy value with the rest of the market but we've been through the ipo cycle before you got to go to 2014 that had cloud deals and triggered a sell off, some like what we're getting new and the already existing cloud names turned out to be a fabulous buying opportunity but you have to absorb pain. they are giving away free money all over the place look at the snow flake, j flag, unity. money managers want a piece of that nobody turns down the red hot deals if you can get them. to buy something new, they had to sell something old. wall street will return out of quality m quality merchandise and we're not there yet. we might get there soon because if you're worried about a biden administration raising taxes on capital gains, they will come public next year they can call it back.

tuesday we hear from a company i have liked since we started the show called auto zone we get from nike, these companies have seen estimates get boosted and boosted and boosted. these numbers are baked in the sell off has given you a terrific buying opportunity. nike is crushing it. my travel trust picks them up with a terrific business that has big margins. for auto zone, the average car on the road keeps getting older and older which means they need more manintenance. i recommend buying some before or after auto zone and a big dip down and a conference call and everybody is happy again tuesday afternoon we get results from k.b. home i think the number will be fabulous like we seen from the other home builders but when lennar reported, we had stewart miller on early this week, when lennar reported, numbers were spectacular but the stock got dinged and first, before roaring the next day after analysts raised estimates, i bet the same

thing with d.r. horton you're going to see the same pattern with k.b. homes. this is a household name, the defensive stocks are tough to own because investors have no interest in them when the industrial part of the economy is coming up campbells, great situation but people aren't interested you can do worse than buying campbells or general mills 3.4% yield especially since it's got faster growth than most consumer package good plays love the blue buffalo pet food marley loves it. i don't care for it. friday is big. don't try to put in acn because it spell checks to can needless fact. j bill, car max and darden i like all four. it helps big companies dig tiit and makes divisions for all sorts of electronic companies including apple.

car max sells used cars. finally, there is darden, the parent of olive garden upgrade after upgrade. mom and pop competitors keep dropping like flies. darden can survive the age of social distancing among tables most of the rivals can't and when it gets cold, that outside dining, uh-uh. after the close, cramer fav costco reports they deliver amazing numbers but usually baked into the stock price so it often goes down after the quarter as it tends to out perform everyone else in its class. if you don't own it already, i suggest waiting before you buy more secretly, i'm hoping for a special dividend but it's no longer a secret because i just said it. you'll see what the fedex and union pacifics are saying. there is a boom in some cargoes made in the united states. if the number is too strong, commentators will argue the change to stripes and talk about

raising interest rates those people will be dead wrong, as usual but jimmy chill has nothing more bad to say. the boom is limited to goods and not services anyone who is worried about inflation now is out of their mind, and if we get a strong group of goods number and somebody says we don't need a stimulus, they have to answer to me which doesn't really mean anything i felt like saying it. bottom line, the great earnings of the world won't say this humpty dumpty market if we keep getting slammed by people selling good to buy the 100 times sales ipos we'll turn lower until the big money managers lose interest and go back to stocks that they shouldn't have sold to begin with gregory in california, gregory >> caller: hi, jim it's friday. i don't know about you but i'm ready for a margirita. >> that's all right. we're all in the same boat what's up? >> caller: absolutely. great club call on wednesday

you and jeff have so much on the calls. appreciate it. >> thank you >> caller: you got it. i have a position in norton life lock being a good club member i am and holding it for the long term but i'll looking fo another cybersecurity stock that reported great earnings about a month ago and sold off afterwards they just announced a cool acquisition of the group the company is palo alto network -- >> i listened to the ceo nick cash is money he's terrific and has a great vision they really got big in the cloud with acquisitions. i like it. by the way, norton life look is a position i'm trying to build up huge for action alerts. it's at $20.87 i'd like to make this a 5% position that's how good i feel about it. let's go to mamoon in virginia. >> caller: hey, jim, how are you? >> great, how about you? >> caller: thank you for taking my call. >> of course. >> caller: question for you is about the return investor right

now the way things are going i have investments to it and wanted to know the potential future for macy's -- >> okay, so macy's is a challenge company but you know what let's say you thought there is going to be a vaccine and the dollar is going to keep getting weaker this might be the one. this might be the speck you need but you got to believe in both those things before you can buy the stock. but then again, i mean, stranger things have happened look, the market is all about supply and demand and right now these red hot i prpos are hurti because people want to sell anything to get in and won't always be like that and then stocks will settle down soon maybe not yet. on "mad" tonight the ceo of splunk has advice and you'll feel better knowing how big data fits in. another day, another ipo moving higher in the market debut don't miss my take on the latest company to take the tape --

well, by the tail and it's unity the after the first day of trading and i'm sitting down with a private company to save pizzi rr zrks zrk pizzarias from delivery casts. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question tweet cramer, #m har #mad tweeds or give us a call. miss somethi ad 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. good morning, mr. sun. good morning, blair. [ chuckles ] whoo. i'm gonna grow big and strong. yes, you are. i'm gonna get this place all clean. i'll give you a hand. and i'm gonna put lisa on crutches! wait, what? said she's gonna need crutches. she fell pretty hard. you might want to clean that up, girl. excuse us. when owning a small business gets real, progressive helps protect what you built with customizable coverage. -and i'm gonna -- -eh, eh, eh. -donny, no. -oh.

-and i'm gonna -- -eh, eh, eh. xfinity is your home for the return of live sports.

no that we'w that we've bee ipo hell week we look what made the snow flake deal enticinentig it had a triple digit growth right but haven't seen a triple digit price and the snow flake is not just another cloud based software stock there is play on big data. the first major big data ipo in a long time. big data is demand for companies to glean insights from the massive volumes of digital information that we create every day. tonight i have zoom and no, not zoom video but actual zoom on the big data story it can really help us. a company called splunk is the original publicly big data stock. it became public in 2012 spunk and money manager haves been using it as a source of funds to pay for snow flake and these other software ipos.

it's good to see some of those bottom today at least at the end of the day let's check in with doug murray, the ceo and president of splunk. doug, welcome back to "mad money". >> thank you, jim. always good to be here. >> to explain the concept of why big data is so compelling, it is one of, not just -- it's one of because you do great security stuff. one of the chief attractions of splunk why does anyone care about big data this much i'll give you the floor to ex pli -- explain why splunk and why big data is popular. >> as you called out, jim, on these cloud kings, you probably have the opportunity to talk about the data kings coming up, as well. we are lucky enough, like snow flake and others, by the way, we're a customer of snow flake we love using their product.

they are a wonderful data warehouse that comp mliments on streaming data and very complex big data but everything in the world as we've talked about has got a sensor attached to it now. almost everything has got some type of wi-fi or network connection and there is a ton of data, literally tons of data that is flying around the stratosphere at any given moment the difficulty is capturing the data and beginning to make sense of it to serve customers morefemor more effectively and reduce cost and hear significaals from the employee base and the capabilities if you understand big data and helps dramatically there, you can actually drive society forward at splunk we call it turning data in every question, decision and every action so that we can keep our organization and society moving forward. >> okay. so doug, is there a limit, though

i mean, i mean, there are so many companies that look and sound like each other and we know that data is very important. you know we were close to dominos and there is a great video on your site about dominos and how great you are important to a technology company that happens to sell pizza but at a certain point, will everybody have someone that defines data and looks for data and searches for data and splunks for data and we won't need any more co companie companies? >> i think the first trend, absolutely every company will need a datazar and leader and officer over time. the whole point of digitalization, number of points one of the big points of digitalization is you get a bunch of data you didn't have before to actually begin to act realtime on all these different signals. that needs somebody that understands data and guides data across an organization that pull from corporations is

what holds companies like splunk and others forward to help the technical population within the organizations actually make sense of data for the marketing department, sales department, h.r. department, financial department, people leaning much more heavily on data gathering, data science and making sense of data. >> all right so for carnival, we know that that company is loaded with technology one of the things they did and we can't cruise now but we'll be cruising again is they'll have something on you that you carry that basically, they know everything about you how do they make money for carnival shareholders and make it a better experience >> yeah, that is the core of their whole data strategy is let's reduce cost so that we're much more thoughtful about when we provision supplies and let's at the same time increase the customer experience and enhance the customer experience so we can anticipate their needs we can pop up both physical and digital services in a just time

basis so their cruise experience is unparalleled and people will go back on the waters at a certain point in time and they will want even more extreme and beneficial experience given everything that we've just been through and data is at the core of both the customer experience as well as driving more efficiency and effectiveness across their fleet. >> one last question is there no end to the number of deals, doug? as a person that looks at stock, i'm thinking all right we are getting deal after deal in this space and it's starting to ware buyers down. is the pipeline filled with big data companies are we kind of seeing the big ones >> you know, i think there is certainly a lot of people that are trying to do different things within the data realm what something like splunk has an advantage around, we've been in business for 15 years we're nosing up to $2 billion of

revenue. as we talked about on the last show, that's -- our growth rate over 50% of a.r. at 2 billion makes us the fastest growing company at that size in the enterprise software arena. there are economies at scale that come from an organization that's willing to invest across the data spectrum. we've invested in streaming, store rig and indexing technology, search technology, machine learning, a.r., v.r., solutions on top and organizations that we're talking to are looking for little flight to safety. i want organizations that i can trust that is able to handle my data needs and i think most markets go to the early winners and super high growth companies and there will always be pressure for people that need funding and need to push companies forward but i like the position they are in to serve our customers in this critical need. >> thank you for explaining. there are a lot of people buying stocks they don't know why they're buying thank you for that and we know

that we've liked splunk for many years. always good to talk to you. >> the same, jim thanks for having me on. >> that's president and ceo of splunk and one of the stocks i think is hurt by the fact people are selling some software companies in order to buy others like snow flake and eventually it ends but hasn't ended yet "mad money" is back after the break. stay restless 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. find a stock basedtech. on your interests experience amazing or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

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. today we got another red hot sizzling tech ipo. this one was called unity software that helps video game developers create contact. after a week of insanely lucrative deals, this followed the same script. unity priced at 52 substantially higher than the already raised price range then opened at 75. before pulling back a bit to 68

and change not exactly another snow flake but still, a huge success. unfortunately, unity is following the same script as every deal from snow flake to am ammo it's way too expensive at these levels for people who watch "mad money. it's worth going over because the stock will pull back and i want you to be prepared to buy some if it gets to a more pal latble evaluation. why did they have the 30% premium? it's not just a video game play. unity is a popular platform for creating and operating interactive realtime 3 d content. they have exposure to all sorts of lucrative end markets, ash te architecture, automotive, transportation and manufacturing and the big one is gaming. last year 53% of the top 1,000 mobile games on the apple store and google play remain using

this company, unity. 53%. i know you never heard of it but that is staggering when you look at mobile games, computer games, more than half of them use this platform and that is huge if they tend to be concentrated in lower budget independent titles you don't see many mega blockbusters with unity. many are privately held with epic games or in house for example, take two interactive has their own engine for games like grand theft auto, red depth redemption and mobile and smaller international independent titles rather than by going head-to-head against the big dogs now, outside of gaming, unity is not like adobe it's sort of used like computer aided design software, fabulous business now in each of these industries, the company has two parallel business models. there is a subscription business where they charge a monthly fee to use the development tool

skpls s and if you make something using the engine, they will take a cut of the revenue if you have a mobile game that makes money from advertising for in game purchases, unity has you covered. when you add up the industries they serve, the total adjustable market could be $29 billion. half of that is from the gaming business the other half from architecture, manufacturing, autos. lucrative. how about the tfinancials >> unity is more than the smoking hot ipos i was founded way back in 2004 so it's old enough to drive. last year, they had 42% revenue growth amazing. at least in the first half of 2020 came in at 39%, which is a strong number but not the kind of that typically gets you a stratosphere evaluation. the dollar base net expansion rate is the business they get from existing customers accelerated to 142% in the first half of the year up from 133% in 2019 that is great. they have seen the steady rise

in the number of large customers doing more than $100,000 of business with them annually and from under 500 in 2018 to 700 in 2020 it's great to have the businesses how about profitability? i spent all week explaining that many newly public tech plays don't need to be profitable. especially not when they're in turbo charged growth mode. because it makes more sense for them to invest every penny they can get their hands on expanding the business and that's what i want for instance from snow flake. like i said before, unity is a more mature company so they are closer to a profit their margin mas are heading ine right direction and subtracting the cost of goods sold was up 400 basis points to nearly 80% that's mind blowing margins. it a major reason for the ipo pop. their operating margin and the percentage of sales was up 1,000 basis points nice to see because they are

closing on profitability what else? the bloodlines the ceo used to run to one of the big three game publishers and backed by very smart venture capital firms silver lake you often hear their name, sequa it is not perfect but has a lot going for them what is that price is it the $68.35 for the stock closing today? no thank you consider that if $38, the mid point of the original price range for the ipo, unity was being valued at 10 billion at 52 the price was valued at nearly 14 billion. when it opened today afternoon at 75, it was worth more than $20 billion. closing on the value of unity's total adjustable market. i regard that as insane. at 68 it's closer to 18 billion. a lot of value creation for a single session, isn't it does that mean if we assume unity can keep

growing at a 39% clip, you can generate 753 million in revenue this year. the ipo price was trading at 18 times sales and after today's run it's trading at 24 times sales. people can't pay that. it's incredibly expensive. even if it seems reasonable compared to something like snow flake or even an ammo that we talked about but that's an elite company. not much trade at 20 times sales. at these they have a similar valuation to the hottest cloud stocks around there. viva systems, cloud fair, the trade desk unity is a good company, i don't think it's z scaler good it not cloud fitter good and not 24 times sales good. i know you probably think i'm dumping on it but price matters so much to me because i've been in the business for a long time and if you get the wrong price for a good company, it doesn't matter you can lose money if you want a sky high valuation, you need ultra fast revenue growth or you need substantial earnings unity is simply not at that

level. not knocking unity i'm knocking unity's price there say rule of thumb we have for softwares and service industrie industries take the revenue growth and add the operating margin and if the sum is above 40, the company passes the test that we like on "mad money." unity flunks the rule of 40 test it's growing at a 39% clip with a negative 6.4% operating margin if they can maintain the current growth rate and generate positive earnings before interest and, t taxes, i would e willing to bless it. they're not there yet. for now i can't get behind unity for 24 times sells or 18 there are softwares and service companies with better numbers and cheaper stocks more seasoned with terrific people running them i want to like this. unity carved out a terrific niche for itself in the video game space it a way to play as a whole without betting on specific titles, the less glamorous but faster growing mobile game space. rather than going head-to-head

against big dogs, unity is taking massive market share with smaller game sty oe studios tha want to pay competition. the bottom line like all the other red hot ipos we've seen this week. you need to let unity cool down before you even think about touching it. i consider this one enticing around $50 or maybe less i know that's a turn off for some of you but you know what? i think patience is a virtue victor from texas. >> caller: i'm a listener of "squawk on the street" and "mad money. i'm calling about big commerce valuation 40 times revenue but offers a lower entry point compared to other companies like shopify. i want to know what's your take on it and should i hold my position, buy more on the dip or

move on? >> i think you have to wait if you want to buy more, you have to wait until it's lower we looked at this growing. it's again in the cohort we said is growing fast but not fast enough to equal the price to sales mark so i thank you for the kind words but we're not big commerce buddies here let's go to rick in florida, please, rick >> caller: boo-yah, dr. cramer. >> boo-yah >> caller: thanks to you, i was able to retire at 58. >> holy cow, man thank you. thank you, very much go ahead >> caller: you want my stock >> yes, i was just doing a little clapping there. what's going on? >> caller: take two interactive. >> i like take two my travel trust earns it and we think it's a great company we bought it lower we did sell some a little bit, let some good because it had a big move but we're holding onto the rest and you have a real winner with take two how about jody in arizona, jody?

>> caller: hi, mr. cramer. >> jody. >> caller: since i'm retiring, i'm a new investor and allowed myself to play with $2,000 as i learn the stock market. >> okay. >> caller: i bought igt 18 months ago at $16.50, bought more on the way down and it hit 375. so i chose to hold it versus sell at such a loss. i see penn and draft kings come back although igt is a different company, from what i understand there is a little over lap with sports betting what are your thoughts on igt? >> you know, it's still a casino it needs casino orders i'm going to have to tell you, jody, i know i don't -- look, you wrote it down. that was great you didn't sell lower. again, i don't see the real value to owning that stock i feel so bad here, guys i've been saying so many negative things about stocks but not about companies. you have to understand that.

it's not about the companies it's about the stocks. another day, another red hot tech ipo let this unity cool before you think about buying it. it can go up but the risk reward isn't great. much more "mad money" ahead. pizza operators on slice and private ordering marketplace have doubled the weekly sales during covid i'll sit down with the ceo to find out about the trend and how the hangover is putting easy to understand stocks back on the map and tonight's edition of the lightning round so stay with cramer incomparable design makes it beautiful. state-of-the-art technology 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.

everything we have, we've earned. the unmistakable lexus is. get zero percent financing on the 2020 is 300. experience amazing at your lexus dealer.

if you run a restaurant, you needs to go digital the survive

the economy. you know grudge hub and door dash, they take a huge cut of your business if you have a smaller independent restaurant like my small plate restaurant now that takeout and delivery are the only game in town, their sky high fees will put struggling restaurants that can't afford the darn rent, put them out of business for once, i've got good news on this front i'm talking about slice, a privately startup with a platform that lets people order custom pizza delivery and charge a much more reasonable fee, $1.95 per hour and help their partners digitize to better compete against big national players. slice took the model further and launched a program to provide $15,000 worth of technology and services to 100 independent pizza restaurants to help them

stay afloat. let's take a closer look with the founder and ceo of slice to get a better sense how his company is doing and how it's going to shakeup the industry. welcome to "mad money. how are you, sir >> i'm doing well, jim thank you for having me. i'm really excited to chat and hopefully, after this program you're switching from dominos to local. >> look. i got to tell you. i heard about your company i said, this is the restaurant's dream and piz zrks zrkpizzaria'm because the other guys take 30%. after you pay labor and electric and insurance and rent, you don't have anything left what's your secret >> we take a real merchant friendly approach because we really believe in the power of small business and the american dream. i am third generation in the

pizza industry my family is entrepreneurs that opened up small business pizzarias and my family wants to make sure as dig 'til ital is p the business, it doesn't take the whole thing. we want to make sure that 70, 80% of the volume for these pizzarias is digital, comparable to dominos and papa johns and to do that, you have to take a long-term view and you have to take a merchant friendly view around loyalty, around online ordering for most of the orders and obviously, in order to do that, we have to run the playbook and lead the digital transformation. >> sir, i think if someone from grub hub were here, uber eats, i think they would say that you don't have a viable model because nobody will work for that low a price.

>> oh, we are actually an all in one platform where we partner with the small business in order to digitize the operation but we're not logistics. we empower small businesses with first party delivery in a way that's been done forever small business pizzarias have delivered across the country for decades and made it work incredibly well. the reality is in the world of covid and as we go into the 2020s, all these pizzarias need to digitize platforms. we bring technology and marketing and we enable the existing operation of the pizzaria and make it more efficient and make it really powerful and valuable. >> so how about -- tell us about slice accelerate which sounds to me like you will be making 100 independent pizzarias will

succe succeed. >> it's the first cohort we'll welcome 100 small business pizza restaurants around the country into this program where we will invest $15,000 in order to accelerate the digital transformation ovf thes businesses but really partner very closely with the operators to make sure they are getting help around technology including in store and operational efficiency type of technology like a point of sell the front end solution highlighting them in the platform on the slice app and then continued to empower them with services and solutions because the goal here isn't just to provide the tools the reality is that these are micro businesses and the owners are literally doing 100 different things every day and all of the responsibilities fall on their shoulders my uncle ran a pizza shop first in the '70s and most recently in

the 2000s and i saw firsthand exactly what he had to deal with in order to stay afloat and so what we do is we want to bring in this investment, and we want to make local entrepreneurs feel incredibly special and great about their craft but also put them in a position of strength so they don't have to worry about the business side of things and marketing side of things. >> look, what you're doing is so important. we all know the small business restaurants are being wiped out and i think that slice is making it so some will survive. so thank you for what you're doing for small business people, sir. >> thank you so much, jim. okay that's the founder and ceo of slice. no, it's not a charity or good deed doer. it's a business. it's not just publicly traded yet. "mad money" is back after the break.

i'm a verizon engineer. and i'm part of the team building... ...a powerful 5g experience for america. it's 5g ultra wideband, and it's already available in parts of select cities. like los angeles. and in new york city. and it's rolling out in cities around the country. with massive capacity. it's like an eight-lane highway compared to a two-lane dirt road. 25x faster than today's 4g networks. in fact, it's the fastest 5g in the world. from the network more people rely on. this is 5g built right. only on verizon. 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.

liberty mutual customizes your car insurance, exso you only pay for what you need. i wish i could shake your hand. granted. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

it is time, it is 250itime r the lighting round buy, buy, buy, sell, sell, sell. are you ready ski daddy? let's start with steve in georgia, steve >> caller: hey, jim. big boo-yah from atlanta in the great state of ohio. >> monster boo-yah back to you what's up? >> caller: so my brother scott and i got into this stock seven years ago around $70 a share and ridden it down to $5.40. i'm still convinced this 3 d is

worse than the cleveland browns. >> worse than the cleveland browns gave me 24 last night. they are both better than the stock you have, my friend. as a matter of fact, number five is the stock i don't really care for. you can own that but it kainain going to make more than a dollar or two you be the judge jason in arizona, jason? >> caller: yo, jimmy chill. >> joe man in the house. >> caller: jason the cobra from phoenix. look, i got puts in crackle barrel and with the virus at play, and considering millennials do not want to eat there, what do you think about the stock and the future of cracker barrel >> i am a believer that there is not a lot of travel going on and that's where cracker barrel makes a lot of money i'm not that interested in it. i did it one time when i was 40 pounds heavier they used to have an l pie with ice cream and cheese on it that was my appetizer.

right now i'm staying away let's go to brandon in maryland. >> caller: big boo-yah, jimmy chill from maryland. thank you for everything you do for guiding us through the market and everything. >> thank you. >> caller: i want to say thank you for getting on the show and the tch deal is over. >> maybe hopefully. what's up? which stock? >> caller: so back in 2016 i worked for hollister and abercrombie and it led me to a stock i invested in for $50 at that time and now it's at $256 and so i want to get your thoughts on zebra technology zbra. >> i think companies i remember like a symbol. didn't have much going this zebra is a company people

are selling to buy new ipos is a great company. i think as it comes down, you can accumulate it but at the same time, since you got a $50 basis, you should take some of your money out and just let the house money run. i want to go to leon in california leon >> caller: hey, jim, i want your wisdom on this company i've been holding for $7 plun p plug power. >> i like plug i was a nay sayer for a long time and they talked about acquisitions they made and i think they are excellent i would not have liked it if it weren't for the acquisitions they made it exciting for me let's go to amine in washington. >> caller: boo-yah jimmy chill. >> boo-yah. >> caller: my dad and i have been watching your show for years. we love you, man. >> thank you hi to your dad, too.

>> caller: know ki nokia -- >> no. who would do that? would you buy a company -- a product more expensive than another product and the company is not as good no that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by t.d. ameritrade that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ 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.

experience amazing t-mobile's new offer on iphone 11 pro is even better on our most powerful signal. switch and get two new lines of unlimited for only $90 and 2 iphone 11 pro's on us. only at t-mobile. ♪ i got it all from you ♪ i'm always pushing through ♪ i know we'll make it to the finish line ♪ ♪ i know you're waiting on the other side ♪

♪ i'm like you on-demand glucose monitoring. because they're always on. another life-changing technology from abbott. so you don't wait for life. you live it. welcome to the rotation. >> buy, buy, sell, sell.

>> another bad day for the average but especially bad for the high-flying tech stocks. right now they are being dumped in favor of the low cyclicals. you got to wonder if this rotation is for real or a temporary reaction to seeing people over pay for those cloud ipos classic example being snow flake. when you see all the hire multiple stocks rolling over, the ones ridiculously and pence sieve, you can think of, that doesn't just happen in isolation. instead, the money flows into other areas of the market that are a lot cheaper and easier to understand now, here is a good comparison take a look at the chart of any cloud or cloud related stock what i'm first doing is picking the four best. these are unbelievably great companies. and look what is happening they're almost all behaving terribly they peaked a couple weeks ago okay right. when the whole market got body

slammed and now, now they are sinking again. look at something like ring central. the cloud-based call center software play which buy the way finally, finally by the way had an up day today. look at the pace look at the z scale. they are an amazing company. the cloud based cybersecurity, it's there these are both terrific. they are both important to the stay at home economy we love so much that's almost all shareholders know about them. that and the fact stocks go higher they stopped going higher even though they reported great quarters, the stocks aren't gaining traction so these are not pretty charts. if we were doing off the charts, i'm sure our charts would say don't touch any of these now, here is what i want you to do check out the action on something -- this is incredible, like free port-mcmoran

this is a stock lost in the wilderness for the better part of a decade. when covid hit, it got cut in half lately it's roaring. it has one of the prettiest charts in the entire chart book. look how you would feel if you owned that stock why is it so good? because freeport is joined at the hip with china when china is in an expansion mode, it is unstoppable. and right now the chinese economy is making an amazing comeback, much to the chagrin of people that say thanks a lot it doesn't hurt they are roaring, too and some freeport is gold. unlike zen desk, it's easy to understand and now darn cheap if you think the earnings are headed higher. can you describe when ring

central does right now the people that own high flyers are frightened they bought the stocks because they want cybersecurity or video conferencing work at home and for months the stock delivered we got to the point where we see new wave cloud and they are dumping old clouds furiously to get a piece of the hot new deals. it's free money to them. given how much the cloud names have run, they are vulnerable to profit taking here free port, free port, up 29% there aren't many holders desperate to preserve profits. the people that own this are brain-dead if they didn't know how to sell it up here, they don't care it's finally coming back. and by the way, there aren't many publicly traded copper companies. there is a scarcity of these as opposed to glut.

it had been a dog for so long nobody cares as it's made a stunning comeback from the march lows didn't matter. this is one of most cyclical stocks on earth. wall street has no interest of free port unless china is bombing. the balance sheet is much less of a liability thanks to ultra low interest rates put it all together and i think the snow flake hangover has investors reaching for more. they are reaching for previously down and out cyclicals like this one, like free port that feels like a much saferer bet at a time when the high flying, hard to understand cloud stocks keep getting hit, getting puhit by wv after wave by profit taking to put their money in hot deals to blow people out. stick with cramer. 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. now you can trade stocks and etfs for any amount you choose instead of buying by the share. all with no commissions. stocks by the slice from fidelity. get your slice today.

okay so we're nearing what i hope is a brief intermission in selling, perhaps they will stop bringing in ipos and if we do that, maybe we can get our footing because they're starting to sell really great companies. you saw it this afternoon. as long as the deals get you big pops, the selling has to continue because it's called free money on wall street. and every hedge fund is going to go for it and they will sell the fangs, sell the microsoft. they will do everything they can to get as much free money as they're able to. i like to say there is always a bull market somewhere and i promise to find it here on "mad money. happy new year i'm jim cramer see you monday

frank: on this episode of "secret lives of the super rich"... you'd better have money, baby. ...feast your eyes on the $85 million malibu mega-home that rises over the pacific and puts you above one of the wealthiest men on the planet. frank: you can look down at larry ellison from this pool. he does not like to hear that. [ laughs ] dezer: see ya! frank: then, take a swim with miami's biggest real-estate tycoon in his aqua-car that got some very unwanted attention. [ laughing ] is this is a cool facebook picture? frank: meet the wealthy adrenaline junkie