>> yeah. i just want again to shout out to jay-z great talking to you off line. we'll chat again soon. come on "fast money. chicago mercantile change higher on a bad tape. >> don't mislead america, guy, please "fast money" with jim cramer begins now please thanks for watching "fast. "mad money" with jim cramer starts now 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 save some money here my job's not just to entertain but to put days like this in context because they're not easy so call me at 1-800-743-cnbc or tweet me @jimcramer. you're probably asking yourself when is it safe to start bottom fishing? maybe you started already.

that is the question after another hideous day. dow plunging 346 points. s&p down 1.34% and the darn nasty nasdaq -- >> sell sell sell! >> -- nose dived 2.11% the answer there are a lot of different ways to spot a bottom, and while a bounce might anybody sight it sure makes sense after all this relentless selling an actual bottom where you can commit a lot of capital? mm too many stages away to feel on solid ground so let's go outside the world of dollars and cents and talk about something that we may all understand from psychology class. yes, let's talk about the five stages of stock market grief we've got denial we've got anger. we've got bargaining, depression, and finally acceptance right now even after a 6% decline we've still got a ton of denial and that's just the first stage. people don't want to believe the sell-off is real the market's been so good for so long and many newer investors have never seen this kind of

pummeling. so the downdraft does seem pretty surreal and hey, denial's easy we've got the pandemic on the ropes thanks to the vaccines, right? that's positive. and the possibility of a big stimulus bill. more checks coming our way that's positive. some of that money flowing to the stock market like it did last time. denial always sounds reasonable, though i was going over this with helene meisler, some fabulous stuff on twitter she does. i've known her for 30 years. it's too early we're convincing ourselves that any decline is really inner loop, it's a dip that needs to be bought. but when the economy reopens that changes everything. we already have some nascent commodity and wage inflation in the system why don't you throw in a huge stimulus package and suddenly lots of investors are worried about an inflation scare, like we saw in late 2015 the last time the economy was coming out of the doldrums. see, at that point fed chief janet yellen raised interest rates and the market, well, the market took it on the chin even though we all knew it was going to happen. well, this time should be different. i mean, today our more dovish

fed chief jay powell acknowledged there could be some uptick in inflation. he said don't worry about it he practically told us to relax. so what happens? would it have been better if he said we have to raise rates? probably because the bond market reacted viciously. with long-term interest rates spiking. and that's what took the whole stock market down. and believe me, just go look at his talk you'll see what he says. and then watch the averages. it's cause and effect. short stocks are getting hammered because the bond market vigilantes as we call them are angry. we've got millions of newer investors, though, who don't even understand -- and i don't mean it to sound condescending at all but they don't understand the connection between bonds and stocks i've got to till i didn't understand it either going back to the five stages of grief these people are in denial about how bonds could impact their stock portfolios i remember when i was a kid i got to goldman sachs in the early 1980s there was a fellow david darcy, regular on cnbc, and he explained to me i needed to check how the bond market was doing before i said a word about

stocks to my any clients i didn't want to hear that i was adamant. i said let me tell you something, if a company's doing well its stock's going to go up. darston chiefed me he sat me down and walked me through how the bond market represents the sum of all fears about supply, inface, growth okay, oversimplification but all you need to know is the professionals are taking their cues from the bond market, not the much more stock market so you can't afford to be in denial about this linkage. you're just going to get hurt. otherwise, you'll never be able to understand what's really killing the stocks of the paypals or the home depots or the nvidias. and it's not their business. it's the bond market sure, if jay powell turns out to be right, if there's no tsunami of inflation, we have a different story. we probably should start buying today. but it could be months before we even know if that's the case we've still got to go through these stages you just do before the market can bottom and we're early on in the process, sadly, for many stocks in this market some are not involved with this. but many are

denial's everywhere. this was a day that started off with ron baron, fabulous money manager, coming on "squawk box" and announcing he sold some tesla, a stock he loves, a stock he discovered. he is tesla. but he had to do it in order to right-size his position. that's a technical term, right size as a former portfolio manager i can tell you baron's doing the exact right thing. he had to trim his position or risk becoming the tesla fund, which is what happens when you own too much of one stock simply because it's been such an incredible outperformer. however, the moment baron announced he'd sold part of his position there was a wave of denial from tesla's shareholders who've watched the stock's sickening slide. they didn't want to believe baron sold i get that when i pointed out he sold only to stay diversified people were furious i pointed it out on twitter. their attitude, why bother mentioning it unless you, cramer, want the stock lower it makes no sense to me. why deny the obvious too many of the newer investors out there, the portfolio management stuff, well, they don't get it it doesn't register. as they see it their biggest

tesla champion was letting stock go denial quickly bled into anger, stage 2. anger at banning the cause, anger at me for pointing it out. anger's better than denial but it's still the second stage of tessa grief. where's the bargaining where's the depression where's the acceptance the stock has fallen from 621. during the last inflation scare from 2015 to '16 tote total debacle and my m.o., we've got to hit all five stages of grief before we bottom was plum ugly. and we only accepted what had happened after becoming incredibly depressed from the endless down side surprises created by janet yellen's -- i remember being out in san francisco, which i absolutely loved and i was like oh, man, i don't want to come to work i've been wanting to come to work for 67 years, give or take. we try to bargain with the animal spirits of the market all throughout that period, desperately holding on, praying the selling would stop please stop selling. stop the deals stop the ipos. stop everything. it didn't work when we financially reached the grand give up, the crescendo of selling that washes out the weak

hands, many high-quality stocks were down -- actually, almost all were down 30% to 40% from their highs. 30% to 40% some great ones had been cut in half but no one wanted them not un because we had accepted that the stock market is an evil, horrible place now, is there a way out of this vicious cycle downward again, this time is different because the fed really doesn't want to tighten. ideally jay powell will be proven right, the economy will grow, won't overheat causing excessive inflation, and that's the optimal scenario if powell's right, then today could very well mark a bottom. but we can't tell yet. i think we don't stop falling until we get more anger, more bargaining, and more depression than we've had how do you measure these emotions well, i have ways to do it i use the proprietary oscillator that i mentioned a lot of times from the s&p that measures where we are, quantifying the level of selling pressure or the level of these when we reach minus 5 on the oscillator that tells you we're pretty depressed when we reach minus 7 or 8 that tells you we've accepted it. this evening we're only at minus

1.5. i don't know kind of here which brings me to the hunt for another way out, what i call the crescendo. the whoosh see, there is a shortcut through the five stages. one that takes you from denial straight to acceptance but if it comes at a real cost, people, you need a gigantic move down and it's got to curve one or two days. i'm not talking about a 1% or 2% decline like today i mean maybe like a full-blown 4%, 5%, 6%, 7% whoosh where there's a collective sense the market's toast no, denying it, nothing to be angry about, no one to bargain with, depression ongoing and acceptance that i am never, ever going to own another stock again. all that happened in the early february of 2016 only followed by what? you know what followed it? a brand new leg up as the bull market started all over again. and then it went on for years. and you made a ton of money if you stuck with it rather than accepting it as the worst, most horrible thing that has ever happened to you. so how do you handle the five stages of grief from here?

we're going to get bounces bounces that make people feel like their bargaining has succeeded. but it hasn't. as i told people today in my actionalertsplus.com call if you lighten up on one of these things when it spikes up you're going to be ready for the moment of capitulation, the crescendo, the acceptance that marks the trough and most people are not light enough right now they have too much merchandise, bottom line. if you want to be able to bottom fish at lower levels make sure you've got a little cash to be able to do it with which means on the obvious rallies that we got including this morning, well, you know what take a little off the table. because the real rally can't begin until we work through these five stages of grief and get down to where you never even want to hear a word from me again. once that happens, though, i mean, you probably do want to hear a word from me, but not in anger. once that happens, though, you don't want to miss it. hey, you know what let's go to robert in california robert >> caller: hi, jim boo-yah from the west coast. >> boo-yah >> caller: hey, i bought slack technologies last summer at

29 3/4, and it ran up to 40 plus after salesforce announced the merger should i sell slack and buy salesforce -- >> this is very important. >> -- salesforce and -- >> i think salesforce is great, the company. right now things are going down and salesforce is one of them, and people are starting to question whether the deal is a good one i think the deal's a good one, but it doesn't matter what i think. right now i just think you want capital. we said today on my call that it's certainly reasonable that salesforce goes even lower but that you don't want to abandon ship down here, not after it's already gone down. it can go down more. but how do you know you'll catch the bottom so what do you do? we're going to get a little rally. we'll get little rallies like we had this morning and you've got to get that cash position going so you'll be able to handle this the real rally doesn't begin, though, until we get right here.

when you say, why did i ever think that i would be a merry man? why did i ever think that i could make money in the stock market on "mad money" tonight tech has been slammed this week but after earnings could it break the tech funk i'll talk to the ceo then expirations i'll take a closer look at the oversupply in this market and sharing how it may impact your portfolio. and remember, oversupply is a hidden disease the solar winds speech was one of the most high-profile cyberattacks of 2020 could the company that discovered the hack be the next cyber security darling i'll talk with fire eye's ceo. stay with the stock market, raise a little cash and stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets send jim an e-mail to

madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. it all starts with an invitation... ...to experience lexus. the invitation to lexus sales event. get 0% apr financing on the 2021 rx 350. experience amazing at your lexus dealer.

we see harnessing natural gas unleashing the promise of cleaner energy. at emerson, we advance the safety and efficiency of the lng industry to meet the world's need for reliable, affordable electricity. emerson. consider it solved.

it's moving day. and while her friends are doing the heavy lifting, affordable electricity. jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating?

oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. right now we're waiting for the cloud stocks to come down to levels where we can start buying them again without a lot of risk but some of these names have been hit a lot harder than others i'm not sure it's right. take spelunk the cloud-based software analytics play. they reported a genuinely ugly quarter in december, sent the stock plummeting and had another letdown. the thing is they're in the middle of a transition it's moving toward a software as a business model there's a short-term hit when you go from selling software licenses to collecting subscription pz. last night they reported again and this time the results were much, much better. i mean, big top and bottom line

beat recurring revenue up 83% over year there was some hair on this -- one management -- let's put it this way they had to be a little cautious because we the economy's pretty crazy because of covid but i've got to tell you the stock got pulled down really with the rest of the market. and it closed off 2.6% this was not splunk's doing. let's take a closer look with the president and ceo of splunk. mr. merit, welcome back to "mad money. >> thank you, jim. very happy to be back. >> i was thinking about what to say to you and if it had been offline i would have said don't take it personally because doug, this quarter, i remember in the previous quarter you said listen, you've got to believe in me, we're going to do this and you know what? they didn't. and not only did you do that but you far exceeded that. you obviously have the products people want including for a company our viewers know ell, shopify.

tell them what you do for that because that is a classic case of what you need splunk for. >> yes it's a great, great company. obviously growing by leaps and pounds everybody went virtual shopify, that is they are a cloud native organization and to do the continuous updates that they need to do to please their retailers and their customers they've got to have an eye on a massive amount of data that their developers are constantly pushing and analyzing to make sure the shopping experience is as effective, that the code is high quality that's hundreds of terabytes of data per day they need somebody that can tap that data, analyze it, extract metrics, ex-trablth traces, extract insights and information so they have the overall confidence in their code and splunk is there as the solution in an area that the analysts are calling observability to ensure that the experience that all of us have from shopify is as great as it

has been and continues to get even better. >> because that empowers so many little companies you'd think without splunk -- i'm not taking anything away if shopify but you need both. you want the little companies that look like big companies and them to be able to observe so they can be able to shift. another company that we have known is a great tech company that has splunk evolved is domino's and that too needs the observability. they need -- you need to be able to tell them so that they can speed up because it is about throughput it's about getting the pieces to you quickly and hot. >> yes and let me actually pivot to a really, really interesting story given all the hardships the uk has gone through tesco has been a long-time company of ours. they are the world's third largest retailer >> 7,000 stores. it's pretty darn big >> largely physical, brick and mortar like everybody else they had to pivot like no tomorrow to be able to serve their customers as that country went up and down, up and down in lockdowns and splunk is there for them as

well helping them with core cybersecurity footprint, knowing how vulnerable organizations are, especially in covid and the cyberfront as well as leaning in to help them get their offerings up on the web quickly so that the uk citizens could actually get what they needed in a time when everybody was sheltering in place. >> so what did happen at the end of last quarter? you said you were going to get the business it's just harder to close because of covid or there were other companies involved and you got the business it was rather amazing. i mean, everything that -- a lot of times people just say but wait a second, come on, he's making excuses but there really were issues and then you won all the businesses. >> you know, i've been at splunk for 31 quarters, ceo for 27 of those quarters and this was the first time that i was surprised in my entire tenure at splunk when i went back and looked at it, it really is a tale of two different businesses for splunk. as you opened the show, we are growing our cloud business like no tomorrow. we've taken revenue from low 90s four years ago to 554 million in

cloud revenue. that's now 24% of overall revenues we've taken annual recurring revenue on a cloud basis from low 100s to 800 million of arr this past year, growing at 83% that's 34% of arr. so a huge, huge motion to cloud. the on-prem business is very, very different that's a much more turbulent business when you're buying products for your data center, which is what we do, you've got to buy servers, you have to buy storage, you have to buy network equipment, you have to hire people, you've got to have floor space and more real estate and what happened in q3 is well over 50% of our install base is still on prem and some of those high-ticket dollar orders got extra scrutiny in the final days of the quarter it surprised everybody in the splunk world it's like looking back okay, i get it that's a big commitment for companies that are trying to think through like tesco how much more do i invest on prem versus how quickly do i go to cloud. we corrected in q4 we changed a lot of our sales

methodology. our overall guidance we did sharing sessions across sales teams that experienced those unforeseen last-minute events i think we had a much more rigorous discipline in q4. and you saw that in the results. but you also saw cloud continue to benefit from what we're seeing with covid with the growth rate. >> i haven't been with you all those quarters but i've been with you for a lot of the quarters and you're a straight-shooting guy. it is a little -- it's a little discouraging when you do the quarter and then you exceed the quarter and the stock still goes down now, your job is not to look at the stock. your job is to do your work. but at a certain point if you did look at it, honestly i thought your stock would be up 5% today because you did it and then some. i guess sometimes you've just got to put your nose to the grindstone, forget about the stock because that's where we are right now, isn't it? >> absolutely. i think you said just a few weeks ago, famous quote that i repeat every single day, short-term markets a voting machine, long-term it's a --

what we're doing is making sure we're doing the right thing that drives weighing. we have transformations architecting our products making them the best in cloud massive investments. six acquisitions in less than two years. that business is growing over 100% giga m who's the only analyst firm that's come out with a thorough evaluation of that landscape just put us as the only outperformer coming from nowhere two years ago the only outperformer in a critical space. we are making long-term investments for the health of our customers. over time i know that's going to pay off. go and look at all your favorite names. there's awesome, awesome cloud companies. find another cloud company at $800 million that's growing at 83%. there's only one that i can find in the entire universe that's at or above those rates and i'm just super proud of what our team's been doing. >> well, you should be i also think you're a man of your word. a lot of people felt -- when i saw it, you said it's going up, i knew it would. which is why i'm so glad you came on the show doug merritt, president and ceo of splunk.

always good to see you >> thank you so much, jim. always good to be here >> you've got to put these names away, maybe put them in your head, maybe put them on a shopping list, but this is the kind of company that delivered they're all going down and at a certain point you're going to look at the ones that delivered and the ones that didn't and splunk did that doug merritt, president and cref splunk "mad money's" back after the break. >> announcer: coming up, with the quiet period in the past, how should you play an ipo market that's about to get loud? cramer's not whispering.

♪♪ ♪ now here we go ♪ ♪ i can't help it if i'm poppin' see them watch like ♪ ♪ who that girl ♪ ♪ it's outrageous how this flavour got em shook like ♪ ♪ hold up ♪ ♪ work work work it out ♪ ♪ ah ha ♪ ♪ i hit it back with a brand new style ♪ ♪ like woah ♪ ♪ bring it up into the fold get wild ♪ ♪ we turning up all the way on the dial ♪ ♪ like woah ♪ ♪ baby i'm fabulous so come on ♪ limitless possibilities. the boldly new 2021 nissan kicks. ♪♪ ♪ if your money is working toward the same goals, why keep it in different places? sofi is a one-stop shop for your finances- designed to work better together. spend with sofi and get cash back rewards that automatically go toward your goals. like investing in stocks, etfs, and crypto. that's better together. or pay down your sofi debt sooner. that's better together. and that's how sofi is helping millions get their money right.

♪ ♪ how do we ensure families facing food insecurity get access to their food? we needed to make sure that, if they couldn't get to the food, the food would come to them. we can deliver for food banks and schools. amazon knows how to do that. i helped deliver 12 million meals to families in need. that's the power of having a company like amazon behind me.

the market's rolling over with the whole growth edifice collapsing under the weight of higher interest rates. we're about to get hit with the last thing we need but we always seem to get at this juncture of

a vicious decline. let's call it a stock glut i keep telling you that this period feels a lot like the inflation scare in late 2015 to early 2016 when the economy overheat sod tech got put through the meat grinder and there's one more point of similarity back then the high-flying cloud stocks got buried under a deluge of new ipos of the same ilk. and you know what? we could see something very similar right now. remember, as i always say, the stock market is above all a market like any other bazaar of goods meaning it's hoft toj supply and demand when you've got lots of new supply coming online at the same time ipos, follow on offerings, lockup expirations and the like and not a lot of new money has stoked demand, it puts a ton of pressure on the averages and that's exactly what's happening. at the same time that yields are backing um, which would grind down stocks on their own and look, right now we've got lots of new supply coming online, lots of merchandise. it's not just the regular ipo market, which swung back into gear yesterday with a lackluster debut from this oscar health as

a health insurance provider with a tech kicker. they came back at 39, opened at 36, finishing the session at 35, then shed another 8% today six months ago wall street would have been salivating over the same deal but there's no appetite for it anymore because money managers only have appetites for the reopening plays. this one kind of smacks of desperation. next week we've got some more big deals like kupang the south korean e-commerce giant. direct listings too, where companies list their shares without necessarily creating new shares roblox the online gaming platform which is another one that feels like it missed its moment also coin base the digital currency exchange that's more in tune with the current zeitgeist. holy toledo. it's just too much supply. you can expect more spak deals too. merging with special acquisition vehicles but lately they've been getting a lot less love. i saw on twitter people attack me you know what? stop attacking me and apologize. it's another sign of oversupply. worst of all, though, we need to

brace ourselves for the aftermath of last year's ipo boom it's now been six months since the ipo business caught fire last september and six months is when the lockup on insider selling typically expires. yeah, put it all together and the stock market is about to have a serious oversupply problem. with no concomitant buybacks or dividends to fall back on this moment really, it's three overlapping problems why don't we do this why don't we take each one of them one by one, starting with new ipos because like at the top of the show i want you to know all the reasons why we're getting pressured here including both spac fund-raisers and traditional ipos as of last night we've had an astounding 277 deals year to date that have raised $95 billion over the same period in 2020 we just had 40 deals and it raised less than 14 billion that's a lot of merchandise we got. most of this year's ipos have been spac deals. but it's a lot of money. now, though, the ipo market is losing steam there's usually a pause in the back half of february but they open the spigot for this oscar

health which came public with a thud so now we've got the coupang coming public next week. number two, by the way on cnbc's disruptor 50 list, the amazon of south korea except they also have door dash style delivery business c ouchltpang wants to put raise 3.6 billion putting it in the neighborhood of last year's highest ipos and at the long end this would be a $50 billion company long term i think it is a good story. but short term i just look at it as another e-commerce play, more merchandise hitting the stock market that we don't have a place to put the roblox direct listing is another one supposed to be hot, hot, hot not sure if this is the moment for an online gaming ipo, though, even if the company's very popular right now we're talking about the stock glut so what matters here is roblox just did a private fund-raising round that valued the company at 29.5 billion and they're about to list 70% of their stock shares on the new york stock exchange this wednesday. that's a lot of stock. i think too much after that, this one's kind of interesting, coin base, direct listing coming later this month

or maybe in april. this could be a lot of excitement because it's about cryptocurrency it's a cryptocurrency exchange but again let's talk supply. coin-based shares have been dropping between 200 and $373 in recent private transactions. at the high end that would give the company a $100 billion valuation. and it looks like the bulk of those shares will be available to trade immediately where are they going to put that stuff? is there really an appetite for all that spekd second problem, the spac attack. people won't stop throwing money at the spacs last month alone there were 101 of these ipos where you basically hand i money to managers so they can make acquisitions on tuesday of this week alone there were 17 spac offerings that raised $5 billion well, this is ridiculous it is. lots of professionals who should know better have started treating spac deals as a sure thing. get a piece of the ipo, then make a fortune when your spac buys something and the stock spikes but that playbook, it's not working that well now.

it's incredible how fast this trade really did fall apart. so far this week we've learned about seven spac mergers these stocks all started around 10 bucks the best performer from this group is only at 11 and change the worst two now under 10 bucks. that wasn't supposed to happen not long ago these deals would probably cost 40, 50, 80%, 100% spikes now the closest you can get is vektdor acquisition which spiked 36% monday on the news it's buying a rocky company since backit's given back most of its gains the rocky companies, no thanks or look at today we found out reinvent technology partners 5 is merging with hippo. oh, want some of that, right an insurance startup what happens the stock plummets 6%. there was i atime when you'd say hippo, that sounds good. now it sounds silly. all this stuff sounds silly. what's changed i think there are too many of these spac stocks and too many individual investors who've been burned by the ones that have started to implode like this churchill capital which ran up to 64 buxz a couple

weeks ago on rumors it would merge with lucid motor and got pummeled on the terms of the deal, $24 today. people can only start taking -- you can only take so many hits like this. i mean, that's big money to lose plus this market has lost interest in the kind of exciting start-ups that spacs typically merge with how many charging station stocks do we need third, lockup expiration armageddon in 2020 the ipo market raised 181 billion and 100 billion of that was packed into the last four months of the year. last september alone there with 70 deals now when a company goes public there's usually some kind of lockup on insider selling so the executives and early investors can't tank the stock right after the ipo. the terms of these lock-ups often vary but generally they last about six months, meaning a lot of new ipos are about to get hit with a tsunami of insider selling once the lockup expires, your stock can be toast there's palantir trying to hang in thanks to a particular fund

jfrog, unity software, that's just supply speaking a bunch of big ones on the way snowflake, way down since its multistage lockup expiration got rolling even as the company reported amazing numbers last night. fared pretty well in this awful market tomorrow we get the final lockup expiration, nearly quadruple the size of the throw. the company just reported that great quarter, shareholders about to get swamps. mccartney's unforgiving. i mean, maybe even it brings down a company that was able to go up $1.97 on a really hideous day. i'm also watching for good rx next week. its flow could increase tenfold. course-area gaming one of our favorites. march 27th its flow could triple ladies and gentlemen, there's no room for this. remember, these are just the beginning. there are more lockup expirations on the way meaning more pressure for the stock market i'm trying to get to you stop denying what's occurring again we sold this in 2015, 2016 when we got hit with wave after wave of new stock from companies that had come public earlier in the year, bottom line. the market is in rough shape and it makes sense that it's in rough shape and it won't get easier if we're trying to digest

a massive oversupply of stock given that there doesn't seem to be much new money coming in. between the new ipos, the spacs and the wave of lockup, praigss this could get even uglier than it is. it could get 2016 ugly, especially for the high growth tech stocks that are already rolling over remember, we saw the market go down, many of these stocks 30%, 40%. the average stocks are down 10% right now. let's just hope the underwriters and even the companies themselves decide to pull their merchandise, realizing that this is a bad time to come public, and we need to stop the flood before it drowns us all. much more "mad money" ahead including my exclusive with fire eye cybersecurity. remains a major threat in the digital economy. i'm hacking into the latest in the space with the company's ceo. then i'm breaking down a trend in this market that investors need to watch out for. so don't miss my take on the dangers of it. and rapid-fire, tonight's edition of the "lightning round. so stay with cramer. ps

some companies still have hr stuck between employees and their data. entering data. changing data. more and more sensitive, personal data. and it doesn't just drag hr down. it drags the entire business down -- with inefficiency, errors and waste. it's ridiculous. so ridiculous. with paycom, employees enter and manage their own data in a single,

easy to use software. visit paycom.com, and schedule your demo today. and in an emergency, they need a network that puts them first. that connects them to technology, to each other, and to other agencies. that's why at&t built firstnet with and for first responders the emergency response network authorized by congress.

firstnet. because putting them first is our job.

even though the market's lost interest in some of our favorite growth stocks doesn't mean that these themes just go away take cybersecurity these stocks can't get any love right now because somehow they're widely regarded as covid plays and wall street's looking past the pandemic. but hackers are still out there and with companies increasingly moving to the cloud their networks are more vulnerable than ever when they make that transition just yesterday we learned that some state-sponsored criminals in china compromised a bug in microsoft's e-mail and calendar server program frankly i'm surprised these big data breaches haven't gotten more attention so tonight i want to consult an expert, fireeye, the cybersecurity company with the best forensics business in the whole industry and they're the one to call when

you get hacked hey, by the way, let's cut to the chase. they're the ones who caught the huge solar winds breach back in september. fireeye stock jumped 70% in response though it's since pulled back from 24 to 18 and change this is the kind of stock that gets cheaper as it gets lower. let's check in with kevin mandia the ceo of fireeye to get a better sense of how his company's doing and where the industry's heading mr. mandia, welcome back to "mad money. >> thank you for having me, jim. appreciate it. >> kevin, i diswas discussing w my friend david faber this morning how the heck is it possible this hack, this solar winds hack which for all we know is still ongoing has just kind of dropped from view there might have been hundreds of people who were hacking us, correct? >> yeah, i think so. but when you look at the landscape right now, jim, i've never seen anything like it. i started responding to breaches 25 years ago this week alone we're still responding to the remnants of the solar winds breach and by the way, that's an ongoing campaign the group that hacked and put an implant in solar winds they're

not going away they've been hacking us for 10 to 20 years. they're going to be doing it the next 10 to 20 years. but you referred to in your opening statement about four zero day exploits, meaning exploits that have no patch, came out this week alone in microsoft's exchange server, the e-mail server. that went undetected for potentially a couple months. so there are a lot of major campaigns in cyberspace right now that are being very successful hacking american organizations. >> well, kevin, there's something wrong here we have great american companies. you just mentioned microsoft a fellow we've had on many times, george curts. okay he's crowdstrike ceo he went in front of congress he said the threat actor took advantage of systemic weaknesses in the windows authentication architecture allowing it to move laterally within the network how do we even as a country allow that to happen >> well, i think first off building software's a lot more complex than people realize. i'm not going to throw a bone out there.

the reality is most organization that's build software do their best to make it secure but it's more complex than building a bridge i remember somebody saying we have laws and rules that govern how you build a building or build a bridge, we should have it for sbr the problem, we know how people use bridges. we know how people use buildings. they follow the laws and rules of physics software, you have no idea how people intend to use it. and software works and integrates with other software to be really just usable and because of that you just introduce vulnerabilities. and there's another one point i'd tell you we're just playing defense in cyberspace right now as a nation we are giving offense the opportunity to hack us with no risks or repercussions, jim. so when you're playing goalie, the puck's going to get in the net from time to time. >> has anyone from the new administration called you about what happened with solar winds >> absolutely. we've talked to the government routinely. and what you can feel, we can tell the line of toleration has

been surpassed we have solarwinds we have an excelion breach that was also unfortunate we have -- and by the way, it's not the fault of these companies. everybody's doing their best but with no risk or repercussions to the threat actors we're kind of like a tackling dummy getting hit over and over again this administration i can tell we've crossed the line of tolerance. we're going to make improvements to the federal government security and to the nation's security >> well, we've known your company for a long time, so i know you're hands on so what happens? someone comes to you and says listen, we've got a real problem and you start looking at it and you realize how huge it is and you blow the whistle i mean, what happens give met sequence of what happens at fireeye >> i can tell you, i was just getting a friday afternoon security update from our security leader and we had a small incident somebody logging into our network successfully but it wasn't one of our people they were using one of our accounts the thing is from 1996 to 1999, somewhere in that time frame, i think i responded to the exact

intruder we were dealing with. a foreign intelligence service from russia. we recognized the ttps and even though it was a tiny wisp of smoke we kind of went right from there to call a board meeting, this is the one we're worried about. and we are built to do investigations, jim. that's what we do. so it's kind of like a fireman responding to a fire in their own house. they know how to put it out. so we just mobilized we just said it's time to go, let's do sfreforensics on every machine at fireeye and when we were done we still didn't know how they broke into fireeye. so what we did is we looked at the earliest evidence of compromise it was our solarwinds server we said there's got to be something wrong with it. so rip it apart. decompile it that's how we found it we exhausted every investigative lead before we finally said there's got to be something wrong with software you trust. so let's tear it apart and find the problem. >> you're from the military. would you tell biden if you were in the room just say listen, we have a real problem, we don't

even have a way to -- you used the tackle dummy say tackle dummy wouldwhat would you tell him so we wouldn't be tackle dummies? >> first thing you have to do, publish a doctrine, these are the rules of engagement that we're going to abide by and you need to abide by and if you violate them expect proportional response. and i'd also tell the head of state you have to know who did it you have to get attribution right so you can impose risk and consequence. people won't mess with us if there's a penalty for doing it >> well, it's a little breathtaking, frankly, because it was just too easy we're just too easily -- we don't fight back it's wrong well, look, thank you for telling us the truth and for finding this thing out and for being vigilant because that's what we need, is vigilance kevin mandia, ceo of fireeye good to see you. thank you so much for coming on "mad money." >> thank you >> that's kevin mandia of fireeye. the stock's too cheap. a little stunning. don't want to think about the stock after what we just heard

but it is the company that found this thing it is worth a lot of money "mad money's" back after the break. >> announcer: coming up next -- >> let's make money together what have we got >> announcer: cramer's bringing the thunder and answering your burning questions in today's edition of the "lightning round.

that's a very good question. will there be an ev for me? what about me? an ev for me? what about me? can i get one too? an ev for this princess? what's an ev? and there better be one for me. and what about michelle from michigan? me? what about me? us? will there be an ev for me? me? me? me? ♪♪ make fitness routine with pure protein.

high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. try pure protein shakes. with vitamins and minerals for immune support. we see harnessing natural gas unleashing the promise of cleaner energy. at emerson, we advance the safety and efficiency of the lng industry to meet the world's need for reliable, affordable electricity. emerson. consider it solved. it is time it's time for the "lightning round" are you ready, skee-daddy? i'm going to start with dexter in california.

dexter >> caller: jimmy, how are you, sir? >> what's happening? >> caller: i love being in the pole position of the "lightning round" callers >> nothing like it, right? it's a feel better over here, my friend what's going on? >> caller: i'm good. a few days back you recommended a list of stocks that trade over 500 bucks that you mentioned as a good way to grow wealth. i think you forgot one it was a good list >> thank you >> caller: a company down from a high a leader in the interconnected hub and data storage space that's going to grow as companies scale. what's your opinion on equinix >> it's a real estate investment trust and right now with interest rates going higher people do not want to own the stocks no matter, what no matter how good they are. so i cannot recommend it let's go to joel in new york >> caller: boo-yah, jim. >> boo-yah, joel >> caller: 40 years ago i got married and charles walgreen's was in the reception line at my wedding. and he said to me don't ever sell our stock i don't know if i want to own a drugstore anymore.

i've got a reasonable position >> well, look, he was before amazon i went to cvs the other day and there wasn't anything there other than the drugs i had to pick up that i wouldn't have been happier getting at amazon delivered to my door and that's the problem the model has changed. so he was right until amazon let's go to noah in maryland noah that's ridiculous, i'm taking noah's call. noah >> caller: jim, thank you for taking our call. >> of course >> caller: unfortunately, my father, who is a healthy 56-year-old and a big fan of yours, passed away in august due to covid >> oh, man i'm sorry. >> caller: it's definitely been rough. and he was a big fan of you, long-time watchers >> oh, thank you >> caller: he was a long-time holder and a firm believer in the work that cbm, cell sight corporation was doing. we're curious to know whether to buy or sell. >> immunotherapy, i actually would like -- four or five

immunotherapies equal one position one of these is going to make all the money you need and i've got to tell you i think that's good. but i am very saddened about covid and your 56-year-old dad and i hope that the rest of your family's doing okay. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> announcer: in the market it's all relative is a term that can cost you money cramer gives you the tools to navigate one of the most treacherous pitfalls in investing. next ♪ ♪

♪ ♪ ♪

live by the pin action, die by the pin action. and that's what we're seeing in tech right now, right here when these former market darlings roared last year it felt like they had no ceiling. now that they're coming back to earth, it feels like they have no floor there's a reason for that. their valuations had become untethered from reality. now, that's great when the market loves growth, but it's a bitter pill when growth goes out

of style and that is what's happened. it's out of style. for now. let me give you an example pinterest. pinterest is one of my favorite websites it tracts hobbyists from all over the world when advertisers were trying to figure out the best places to target consumers, pinterest was kind of an also ran. the company's growing. not as fast as other social media plays. it's skewed international, which a negative for most american consumer product companies going into last year it felt like a has-been. but then pinterest reported what i call a fulcrum quarter with much faster than expected growth and suddenly this kinder, gentler social media site started poaching ad dollars from the uncontrollable facebook. next thing you know the stock runs from $20 to $90 it goes from being kind of a small cap to a mid-cap to a large cap, a $50 billion company. at these levels pint refrt sold for more than 100 times earnings and it felt like the sky was the limit. well, because the estimates called for 50% growth. then you've got to say to

yourself, it can't be isolated, right? it's got to be relative. there's got to be pin action you see pinterest soaring that ignites the whole group. so snap, another social media also ran, cleans up its act, then sees a big pickup in traffic and suddenly the market needs to figure out what the new snap is worth. well, is it growing like pinterest? you've got to do the comparison. nope it turns out it's growing twice as fast as pinterest so at its peak snap gets a valuation that's roughly two times pinterest's. that's right $100 billion well, then along comes twitter and it too sees growth accelerating so we put it through the same prism as pinterest and snap, which is how its stock doubles over the course of six months. you get these moves when the only limit on valuation is what other people are willing to pay for a company's future earnings. but look what happens when the market sours on high-flying growth stocks because of an uptick in bond yields. with the benchmark 10-year treasury going from 1% to 1.5% this year. you can't just circle the wagons and say don't worry about it

that doesn't work. you can't say the businesses are fine this is the stock market we're talking about. with these former market darlings there's nothing to buttress their valuations other than the future earnings streams. and those future earnings are worth less when everybody's worried about a pickup in inflation. you can't just say hey, pinterest is worth this so you know what, this is worth much more than that uh-uh. plus these companies have no buybacks if anything, they're probably issuing shares they've got no dividends because they're growth stocks. and now suddenly the charts have turned against them. bringing in short sellers galore with no reddit short busters in sight. in other words, with a pinterest or a snap there's nothing to pin the valuation on so what happens? we go all humpty-dumpty until the bond market calms down and that's where we are right now. the great growth stocks that roared last year making for a shaky edifice now because there's no underpinnings there's nothing to make the valuations stick even a great company like snowflake just reported

tremendous quarter last night. it should have been up huge but it couldn't be why? it got very little love in part because their last lockup on insider selling's about to expire but also because holy cow, if everything else is going down how can that go up? same goes for zoom video the ultimate covid stock that's trading like the pandemic's already over and to be sure while i like these companies both i cannot be in denial. i cannot be oblivious to what's happening to their stocks. separate from their companies. the bad news all these high-flying growth stocks are worth less than it turns out we thought actually, i mean all of them the good news, though? these stocks were able to flourish when long-term interest rates were low so once bond yields start coming back down or even stabilize, there's a good chance they can come roaring back, hopefully with a little more caution, maybe with a little less irrational exuberance. that's why i'm always stressing you need to stay disciplined, because the market can turn on a dime it's why i always tell you listen, ain't nothing wrong with taking a little profit here. because, well, you had gains and then you don't

it's why you need to remember, anything that soars like it's got no ceiling can loss come tumbling down like it's got no floor. and it does so a lot faster than when it went up. i like to say there's always a bull market somewhere and i promise toto try to find it for yoririt t ghghu u here on "mad " i' the investigation of covid's origins hits a wall. the new word from scientists on the front line i'm shepard smith. this is the news on cnbc accused of writing prescriptions for massive amounts of opioids >> relatives of his patients called him demanding him to stop prescribing to their loved ones. >> a doctor charged with the murders of five patients. going 24/7, the arrival of the johnson & johnson single shot marks a major escalation in the covid fight. the vaccine super sites that will be open