10% of market cap in cash, they should have bought it when i punished it at $18 maybe they did capri. >> tim's already eating dinner tim, final trade >> we did a doge coin happy meal segment yesterday and i was so fired up i my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull mark somewhere, and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cramerica everyone wants to make friends i'm just trying to make you some money. my job is not just to entertain, but call or tweet me the market was cruising today. looking real good. until the fed press conference hit a retaining wall

that triggered a wave of machine selling where the dowtripping 130 points it was up 518 points and then it fell 421 a crazy swing. while the s&p lost .15% and the nasdaq edged up a .02% but look at this it is getting really nutty out there. it is whacky but it was a little bit disappointing session for the bulls who saw their hopes dashed once again so did fed chief jay powell cause the sell-off there are enough people afraid of tocks thatis easy to trigge a panic. but here is the truth. the truth about jay powell, he's smarter than his critics and he kno knows how to do his job and something critics wan. ee frot trying to cater to the

people who want easy money for the inflation easy who wants us to hit with a 50 basis point rate hike that would cripple the economy. you know what that is called prudence the critics that don't care how much our inflation is caused by covid and supply chain disruptions want someone to jack a to the car ottid artery and they want him to be judgemental, and the opposite of prudence and promise to raise interest rate by straddling the life out of business and then the bulls want low rates because it is easy to make money. he please all, you please none if you're a central banker, you're doing a good job if you're making them angry anybody who comes to the fed who give this guy an attaboy, he's not some live action, powell is back and bigger than ever. we're talking about a public servant that is good at his job.

now which is rare at this day and age. the feds will suck up all of the liquidity, never mind that the claims are couldn't raw d-- co contradictory, they were there because the big bad event is behind us and powell didn't do anything like that surprising like hitting with a mead 50 basis point rating there weren't enough buyers to staunch the bleeding from the buyers who obliterated everything up on strong earnings that is the disspiriting part of the session. the sellers reacting to the press conference, compared to the dovish tone in the statement, and ended up getting last word. so we could say, what a bad day. that is just happened to be when the bell rang. so when it comes to stocks, jay powell, which side is correct, the bulls or the bears neither. if you're buying companies to

make a profit and return it to shareholders, i think you'll do just fine. if you make no money and grow fast, you won't do fine because powell is not on that team any more the stocks of big companies went down but unlike the spacs and ipos of the past year, i think they'll be able to bounce back a high you may ask on companies do badly already isn't powell going to have to destroy economy and sell everything and that is why we have the same sell orders pushed us monday and tuesday and the moment he ripped about rate hikes. >> want you to consider the following. right now the major companies that have reported, we've seen a huge number of upside surprises. doesn't mean their stocks could soar when there are high explosives but it will matter when the selling stops. since earnings season began we've had beat and raise

quarters from johnson & johnson, proctor and gamble, microsoft, verizon, travelers raytheon, 3m and wells fargo. netflix, all right and ge, ah and jp morgan was more of a temper tantrum many more huge capital companies doing well and that is it okay now you could say so what, jim, they're doing bad and the bad withins do bad and that is what happens with powell speaks can't you see that jim that is future no, i'm not so sure. i don't like to grade myself by where the sell program went out. if you're investing for the long-term and that i keep recommending, and that is these, t then what caused it to sell, seller after seller, forbids that could rise up they didn't know, they don't have any understanding that some

companies are doing better than others and they think they are all the same tomorrow when we go back to valuating individual companies it will be the same as of late the world changed in november when powell told you would be done stoking the economy he's done. if you're company could still make things and sell them at a profit, these, because rates went up big today, don't let the programs scare you away from value. but if we get a bounce, four times in six years, four, and all about the covid crash was terrific buy opportunity so i'm expecting relieve yourself of the spacs and recent ipos, the junk and hundreds and hundred dollars of clunkers we'll see later under the show despite the decline, we still couldn't find many that are worth buying and there are so many worth selling here is the bottom line. fed tight epping cycles are bearish.

the fed is known, and jay powell is not going to bail you out of any crummy companies with easy money. he's going to crush you if you're in the spacs and ipos, and the fed put it is dead but that doesn't mean everything is bad there are fewer ideas that are good they still exist you have to know where to find them elliott in illinois, elliott >> caller: booyah, jim. >> booyah. >> caller: so i have a question on a stock that a lot of people said was going to be a reopening play i bought it in september of 21 it has been trading sideways since. think it is all about profitability with this company. what do you think about uber and give me some good news shell man. >> he's hurting here because that doesn't fit the new reality. that is a company that is a very good company but it loses money. and i'm no longer inclined to recommend companies that lose money on the show. because i want, what i call,

viewers. and ann. >> caller: jim, thanks for taking my call >> thank you >> caller: trying to figure out how to buy on a dip for a reason and not just buy on any old dip. you could talk about that through the lens of estee lauder. >> were you at my morning meeting this morning with jeff marks. >> yes. >> we were saying what level because i want estee lauder so badly. because i think they're a terrific company and jeff keeps saying, jim it is still too expensive and it is 30 times earning and you have to buy and he said not yet. when we bought it, it was a little bit lower and we sold it high we're on the verge of making a move on estee lauder and you have to be a member of investing club i can't believe that you mentioned that stock that was the one that we wore going on hammer and tongs today. so you have to know where to find them but look at all of

these. you've heard of every one of these company, every one on "mad money" today, wall street has been absent so is it time to start putting money to work and where should you look i'm doing some screening to try to find what you like but i have to have proper ones. and in the spacs, i knew where you live anyway, i'm hunting for opportunity. i'm revealing a corner of the market that would help your portfolio and after the bell i'm thinking of the numbers, after a different kind of subscription and that is profitable, but the spacs, the ipos, the fed put its over 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. what happens when we welcome change? we can transform our workforce overnight out of convenience,

or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change. my name is douglas. i'm a writer/director and i'm still working. in the kind of work that i do, you are surrounded by people who are all younger than you. i had to get help somewhere along the line to stay competitive. i discovered prevagen. i started taking it and after a period of time, my memory improved. it was a game-changer for me. prevagen. healthier brain. better life.

as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable nationwide network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business: powering possibilities.

the day started cool, but we decided to get more optimistic we think it is time to sort amongst the rubble given the incredible declines that we've had and now oversold conditions that exist, to see if it lasts, there aren't some higher quality bargains somewhere. the last couple of months have been a blood bath. since late november i've been warning you to circle the wagons for real profits the investing club is sick of hearing it i don't care it is right. if you took that advice, it is

much better than those who that tried to stick with the high flying stocks with no worries that have been annihilated but in some nooks and crannies i think the selling as gone too far. so many babies being thrown out with the bath water. and simply because the declines have been so severe. some stocks get cheaper as they go lower so how do you gauge what is cheap? we ran a screen, a very basic screen, we took a look at the russell 3,000, 3,000 largest public traded company and we searched for any tocks down 50% from their highs and also sell for less than 50 times earnings. down 50, less than 50. and in other b words, stocks got cheaper as they went lower within the russell 3000, there were stocks large enough for us to talk about on air within that group, more thane 81% were down 10% from the

52-week highs as of last night's close and half were down 20% and that is bear market and a third were down 30%, still not low enough for us. over a fifth of them were down 40%. that is some severe widespread damage but we wanted stocks that are down at least 50%. and of the 2436 names in the russell 3000, 360 of them were down 50% or more from highs as of last night. that is almost 15% of the total. think about how concentrated the losses are for the second screen, how many of these down 50% sell for less than 50 times earnings, well okay, five of these didn't have any consensus earnings so we don't know for 2022. so now we're down to 355 within that group 205 companies are expected to lose money this year we don't want any of those we've now got a clean list of 150 stocks out of 3,000 that are both down 50% and are also profitable but maybe profitability is not

enough we want names with genuine value that sell for less than 50 times earnings even though that is still expensive and low and behold in the end we were left with 110 stocks that made the 50/50 list i have to tell you, out of 3000, i thought that 110 wasn't bad. 3,000 down to 110 is a heck of a lot more than we expected. this is kind of screen that is the starting point i'm giving you the starting point. now let's take a look. 11 of the valuations north of $10 billion and that includes moderna, zoom video, biogen, twitter and rocket companies and viacom and pinterest and discovery and clair vat. so you have moderna and zoom where wall street is now concerned about a future post pandemic slowdown. biogen is the drug company with a sketchy alzheimer's drug that

i don't think is good. that got approved last summer. stay away. you have a pair of downtrodden social media in twitter and pinterest. rocket, tough with the fed about to tighten forget about it. as for viacom and cbs and discovery, they got bid up high by a hedge fund that was manipulating the market. so clair vait, that is different. i haven't cracked on the books that lets us left with etsy. and face for solar, i like i think those are actually buys. this is a pretend and maybe just give it time and this one is really interesting so of the plus 10 billion, i'm liking enphase and twitter and pirnt esther

there are 10 mid cap companies with 5 and $10 billion and that is avis budget, uwm holdings, upstart and pen that and the gap,ality altese usa and avis has seen the stock fall 70% in the last three months so maybe it is even cheap valuation is misleading. uwn is the number two mortgage in america and they'll tell you they do better than the competition in a rising interest rate environment i don't care this one has a work. it is a nightmare. up start use fico scores obsolete now this is back down. i don't know if it is cheap. 43 times earnings. but they're real okay so we're going to stick with that pen nat made a online bet on sports gambling, a industry that is way to competitive for me right now.

to get customers in, it is good, i don't know i think. marvel life sciences have the mrna covid based vaccine so it is the same as moderna gap is down because they totally screwed up the holiday season. maybe they've been punished enough but the stock selling at less than 10 times earnings. intriguing and the cable provider is struggling no thanks and israeli mobile game developer in last quarter, if you're take two's big bid for zi zynga, no. as for novavax, single was right. i say i like nova grates, not novavax. no thank you i haven't been able to get the fda approval that they have been telling you they would get for the covid vaccine. and then finally there is sam adams and truly hard seltzer the business has gotten way to competitive. they're in the penalty box well so i got upstart, okay.

better than a sharp stick in the eye. how about the remaining 89 companies that are smaller than $5 billion i'm willing to stick my neck out. resolve group is a digital power retailers unfairly punished, last quarter was excellent you have bed bath&beyond and that is worth more than it is selling for. and nordstrom family owned and where kohl's could have two takeover bids, i can't resist the stock and i think the buy buy baby unit is worth the price of the entire company. call me good, good, good okay now i'm also in touch by course air gaming a lot of great things about gaming and their a partial competitor this one got bit up by the meme stock crew and after that course air pump and dump was over, it never came back.

and there is also cerence, as the automakers over come the semiconductor shortage and ramp up production, i bet this one bounces back kind of like that. finally there is toward, plus size apparel and the stock has been hard hit after a pair of negatives updates flaft couple of quarters, last couple of months but these problems were covid related. it is expected $1 per share, that could be a winner so i'm going to circle tort. here is the bottom line. after the nonstop pommeling we have a bunch of stocks cheap enough to buy but i remain committed to by manhunt raw. buy the stocks of real companies and sell them for big profits they return to shareholders via dividends and buybacks we're down with the spacs and the ipo and stocks where interest rate is going higher

and the fed is not your friend but hey, i found almost a dozen stocks out of 3,000. getting there. stick with cramer. >> coming up, is the market showing a soft spot for hardware don't hit control alt delete on the pc makers until you hear cramer's take on the cohort, next

am i working on friday? see for yourself. who are you? she's from clover. clover does that so i can do this.

i didn't know you had dahlias. they're my favorite. they just came in. thank you. i should do a marketing campaign. clover does that. you're like a mind reader. alright, you're all set. could i order online too? you sure can. secure payments, the tools you need, people who can help, we do that. talk to a clover business consultant today. since the fed got serious by tamping down inflation back in november i've been warning you that the workable investments have shrunk it is my theme and starting with the investing club in november out of the recent ipoed and the miserable spacs and return the profits to exist and we keep

looking for them for you even if new tech is out, old tech has a place in the new market which brings me to two large pc makers. dell technology and hp inc they have spurred a wave of computer buying for individuals and employers but now they expect the pc realm after covid. and that removes a major source of demand. but i think the analysts may be wrong and i'm optimistic about dell, hp and apple but we'll save that for tomorrow to understand what we're working with here, we'll start with dell which was taken private by michael dell and silver lake partners back in 2013. they became public again at the end of 2018 and i pounded the table because i like mychal bell so much and it was trading at six times earnings it was a very good call. since i recommended dell, the

stock has gib given up about 150% gain. most of the gains have come over the last year and a half because the rise of the stay-at-home economy has been very good for business dell had record sales in the 2021 fiscal year that ended 12 months ago and they will break the record again in 2022 fiscal year the story is simple. once the pandemic arrived and people were forced to work or study from home, everyone started spending money on computers. and then as the world went back to normal, in terms of back to the office, companies racked up servers and storage. and that is dell you through their infrastructure division. along the way the company has done a lot tosimplify the business they decided to spinoff their vr s subsidiary and raised it dell has been able to use money to pay down a substantial amount of debt and that is why people didn't like the stock. very good news because the balance sheet was not pretty

they had nearly $54 billion in debt at the end of january 2019 and they are now down to $32 billion. sand michael dell is there and i like him in late november, dow reported the most reseccent reports which includes the pc business up 35% year-over-year. even better management gave phenomenal guidance for the next quarter. they were liking for $525 billion and on wall street, me pointed out that dell is taking share and they have a nice backlog on the storage side of the business and the stock jumped 4.8% and rallying to 60 and change a little more than a week ago. but thanks to the meltdown, you get it at $55. this is what i'm looking for how about the hp pc and printer business. here is a stock that was struggling in a couple of years before the pandemic. but then lawrence took over, ceo

in late 2019 and turned around doesn't hurt they've gotten the same boost as dell from the pandemic if there is one wrinkle, it is the attempted xerox merger by carl icahn they rejected the offer and they announced a major value creation plan that includes a massive $15 billion with a b buy back. fast forward to late november, hp smashed the estimates. >> 9.3% retch growth and they gave you earnings guidance for the full 2022 fiscal year. we spoke to the ceo on the night of the report and they've seen strong demand among consumer and building a more of a growth portfolio. after that, it is now given back all of those post quarter gains again because of the sell-off. now the big risk for both dell and hp is that pc sales will

slow down and after two years of covid growth, everybody expects a pc slowdown. they're not wrong. microsoft said last night, the surfac surface tablets were one of the least declined there is more to the story because not all pc businesses are created equal. i think dell and hp may be more durable. when the analysts talk about pc slowdown, they're focused on the consumer not the enterprise. i think it benefits apple more than these two, but if you think we're about to have a back-to-back -- a back to work trend, then they'll be winner. at the same time they both have substantial backlog thanks to the semi shortage. >> that means pc sales war better because they are completing all of the ordered in 2021 second, mitigating factor, these companies make more than just printers the printing division and dell has the structure solutions

group that sells servers and netw networking equipment there are not just a consumer pc business. >> that makes the stocks cheaper than they seem and i think dell and hp are perfect for the moment where wall street likes cheap stocks it is hard to find a better value than these two dell 6.4 times earnings and hp, 8.5 times next year's numbers. and hp sports had a 2.8 dividend yield and committed to buying back $4 billion of worth of stock. and dell could get more aggressive with the buyback. something the chief operating officer spoke about. even if dell and hp can't repeat the explosive growth from last year, they should be able thrive in year even with jay powell not being on a lot of the stuff's side and that is because value is very much back in the style of the wall street fashion show and these two, they have it in

spades let's take calls, to mark in florida. mark. >> i'm enjoying the investing club. >> we did some good months today. it is exclusive to club members. 10:20 morning meeting, you could get it please watch it. and how could i help >> all right, my questions about work day the most recent earnings were a 28% on estimates and i've taken profits but lately there have been put buying and price target reductions i don't see a reason why. where do you think it is going from here. >> companies that are selling more than 50 times earnings are problematic even if they are great companies. let's see how qual techs does tonight and see whether it goes up the market is very mean and angry right now and we didn't blame it because the fed is not

our friend needor in california. >> how are you doing. >> i'm all right how about you. >> caller: very good my question is i've been heavily invested in intuit and i want to get your take on it. >> i'm sorry, what stock was that >> caller: inuit. >> i think it is great i was watching all of the ads this weekend, they are sponsoring a lot of stuff. this is a great company. but i pulled out the file, 43 times earnings anything that is north of 25, 30, it is angry and it doesn't like inuit will have its day. it is a fantastic company. so put it away value is back, baby. and that means that even if dell and hp don't have the same kind of explosive growth as last year, they could still thrive, self-help matters. much more "mad money" including my interview with qualify text maybe just put it away i'm talking to the company's top brass. and then microsoft reported last night and provided valuable

sniegtd. what you couldea a rid re on tonight's edition of "the lightning round." so stay with cramer. your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire matching your job description. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed

the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. i can get live tv and on demand anywhere. look, serena williams... matrix... serena... matrix... serena... matrix...

♪ ♪ ♪ get your tv together with the best of live and on demand. introducing directv stream.

tonight we have a very interesting test case on our hands. when qual trex, xm, this is an experienced management software company with a stock that has been obliterated down nearly 50% from the highs like so many others. but after the close, they reported a set of numbers that i think are emblematic of the group. they delivered an amazing top line beat.

48% revenue growth with a loss though then they gave out excellent revenue guidance market doesn't have much patience and they have fantastic brand names but investors did see as shares were up 5% in after hours trading so could they be getting cheap enough to pick at or will it continue to spell losses for shareholders. let's check in the founder and chairman of quell talks. welcome back too mad money. >> thank you for having us, jim. >> it is been 20 years you started in the basement. working all the way up it is been a remarkable run. people say it is almost generic. goldman sachs has it barkleys, bmw, everybody know i know uses qualtrics. >> when the first dollar comes

in, you're dreaming of what life could be and you're hoping that you could develop a company that people want to use and to be here 20 years later an go through a billion in revenue while we're accelerating the business and has never been better, we signed up 3,000 customers last year, it is pretty amazing and i think it's a testament to the category that we created in experienced management, the team that we have, this is best team we've ever had along that 20-year journey with zig ceo and i couldn't be more excited it is actually pretty incredible that experiences at the forefront of everything. that is what every customer is trying to understand they're trying to build a moat around their business through running it really from the outside in and there is never been a better time for qualtrics and this space and we're excited for the

future. >> and i agree an zig, let me put it this way, if i was running the company you want to get revenue growth and you own this whole category when people are leave their job and they have their choices and most ceo's have no idea how to deal with this other than to call you in so what is the tension between going full bore and maybe even getting to $2 billion in revenue but losing a lot of money, or just saying okay, listen now because this market is the way it is, we have to start slow on our expectations to make profits for shareholders. >> as you pointed out, this is an outstanding quarter that we came off of it and i'll call out the fact that this is the fourth consecutive quarter of robust growth in fact, in q4 our subscription revenue was up 61% year-over-year so at the end of the day we see a robust market. we're managing for growth. but we're also managing it with discipline if you look at 2021, we had non-gaap operating margin

positive result and we're guiding to $1.4 billion in revenue this next year and we're also going to be operating margin profitable. so that is the way that we're managing it and we're a leader in this market as you pointed out. >> one of the problems is people don't understand subscription accounting in reality, if you were allowed to just book it as rev, it would be earnings because these people aren't canceling what is the true metric that could tell our viewers why this stock is cheap because as a subscription guy, i know it is cheap. >> well, i know -- >> go ahead, zig first and then i'll let ryan take a shot at it. go ahead. >> there is an important metric which is our net, nrr, 128% the last quarter and that is actually a sign of the fact that companies are expanding and they're building on our platform. they're there are ceo's that are taking their company and saying let's standardize on this platform because we want to use

this to be able to get a 360 understanding of our customers, we want to get connecticuted to our employees and be able to make much better decisions in the way that we run our business so that is an important metric 128% that is a record metric. and it actually i think illustrates the core health of this business. >> and again, what people -- i saw this happen with the people, the companies that were reversing in customer relations management and then the companies that were in hr and people like had one of these squalls like we have right now, where people only want big dividends and stuff and what happens, ryan, is people say, you know what, i don't want the category winner. but isn't it the truth that you're making fortunes, it is just spending to get even bigger what is what i would want as a growth manager. >> yeah, and i think if you look at it. i had a friend who called me in weekend and said do you power all of las vegas and i said what do you mean. he said, look from the time i got on the airplane to when i do

my rental car to getting to the hotel to going to the sports event, these are all separate organizations and every one of them was asking me how i felt and how the experience was and it was all powered by qualtrics. and so when you're in this type of a market, and we've grown responsibly for 20 years we were one of the most cash effective and efficient organizations out there. we are not growing responsibly, as zig just said and wearing to $1.4 billion next year this is the type of company that i obviously want to be a part of it i'm 20 years in and i hope to do it for another 20 years after that and qualtrics will be that type of company. that is what i'm excited about and how we think about it and we couldn't be more excited. >> you have to keep the business, getting new customers, making more and more money an then what will happen is people one day will say oh, my god,

look at that operating cash flow these guys are crushing it we use the product and they make money. that is the progression as you see it, isn't it >> yeah. and look, jim, we've been building this company with a long-term orientation. we want ten years from now for people to look back and say this is a great company not just a company that achieved a few metrics here and there so we've been managing that way. and pay attention to the key metrics and we have a demand coming our way that is all in our favor, we design an architecture that is unique and it is as important as hr systems and crm systems. it is building deeper connections with your customer and your employee. >> i wish we have an accounting that show how you are making a ton of money but i know the way that the cabin rules are and i know you can't say it but having been in that business, i know thaur that you're killing it and you're being the only brand in an incredibly important category, i want to congratulate 20 years to

ryan smith, founder and executive chair and ceo, zig seraphin, i sure hope that the market comes back to companies that are crushing it even if it turns out that all they're doing is growing and growing. thank you, gentlemen. >> thank you, jim. i think that having one or two great growth companies that aren't necessarily getting you the big dividend are fine and this is like salesforce, maybe ten years ago, where everybody said oh, wow, what is that and then it turns out they're all using it and the next thing you know they were crushing it "mad money" is back after the break. >> announcer: stick around -- "the lightning round" is coming up next.

(inspiring music) - [narrator] at southern new hampshire university, you can finish your degree faster, and for less money. transfer up to 90 college credits toward your bachelor's degree. - i was able to transfer a lot of my credits and it made it easier for me knowing that i don't have to start all over again. - definitely lowered the cost by being able to transfer those credits in. - [narrator] get more transfer credits, pay less tuition. now that's something to celebrate. apply free at snhu.edu

"the lightning round" is sponsored by td ameritrade >> it is time. time for "the lightning round. and then the lightning round is over are you ready, skee daddy. jeremy in florida. jeremy >> caller: booyah professor cramer what could you tell me about arc trucking. >> i like trucking i like arc best but we did the compare last night of union pacific versus csx, and it is really good, would you go with the first. holly in new york. holly? >> caller: booyah, i'm eastern long-term, i'm putting holly on.

>> what do you think about road block stock. rblx ticker symbol. >> we're getting young people. now here is the problem, it is good for you, holly, not for a lot of others because ever since the fed changes its tune back in november they know the market is too angry to light these long-term value stocks but it is okay for you you have your whole life ahead of you you should be a buyer of road blocks to max in illinois >> caller: jim, booyah, big guy. >> what is up. >> caller: i want your thoughts on ulta. >> i think dave kim bell is doing a fantastic job and that is one of the retailers i want to own, down in steps, maybe 300, they are doing well joe in north carolina. >> caller: calling about js pharmaceutical. >> now i like jazz at one time but it is a company, it is a very inexpensive company i have to reopen why it is so inexpensive, because something is not right there

so let me come back. how about tom in illinois. tom? >> caller: jim, how is it going? >> it is going very well long days but going well how about you? >> caller: i can't expcomplain t it is cold i have a question for you. cgp and i made a nice gain so far. >> no you, haven't made anything i think you have more room more room in the upside. you stay long that buddy to angel in pennsylvania. >> i'm an investment club member and a first time caller. how are you do in. >> fantastic >> caller: i have a question about zynga, the symbol is znga. >> well that is over take two is buying it. this is all going around and it is by the way last time on the the microsoft call you, could see where they are buying

activision blizzard. dave in ohio. >> booyah, mr. cramer. >> what is going on? >> caller: the stock i'm calling about announced a $550 million cash deal to acry the athletic it was diluted for earnings and the street does not like it one bit. do you look at this as an entry point for a 52-week low. >> i wish -- i happen to like that ceo very much, meredith levion, he's sensational i wish she would talk to me. she overpaid it is okay they were investors. and i know them. but they paid too much for that and that has purt the valuation. and both are great product but you can't pay that much. to michael in wisconsin. >> caller: hi jim, thank you for taking my call. >> of course >> caller: i would like to have your take on f-5 it has performed the s&p over the last six months what, is your opinion.

>> this is the guys that control the red light green light noipt highway but they did have a supply problem and there is no room for mistakes any more in any technology company and that is, ladies and gentlemen, is the conclusion of "the lightning round." >> announcer: "the lightning round" is sponsored by td ameritrade. >> coming up, news you could use and plenty of news you should lose cramer flags a key point that could make or break your earnings season. and it is next i'm searching for info on options trading, and look, it feels like i'm just wasting time. 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 ♪ what happens when we welcome change? we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change.

if i ran any trading class, not on investing, a trading class would you start by wanting you to curb your impatience during earnings season by stop relying on the headlines that are off the mark case in point. microsoft, that is a $2 trillion company that everyone has heard of but the headlines we saw after the close were dead wrong. now, if you can't rely on the headlines, how you could rely it for everything else. they released a dry statement of how it is doing. that is the earnings report. in keeping with the typical bear

bones style. they did throw in a outline of how microsoft is is a dressing huge global problems but they told us what they are doing and will do in the tasks at handch that is microsoft style since amy hood became the chief financial officer in 2013. i feel like i've known amy forever because she was a heavy hitter at goldman sachs. she's meticulous and rigorous and amy orchestrates her conference call part, so perfectly, so consistencely that you know when you get to about the half hour mark she's going to tell you how things are really going in all of microsoft's key divisions and then she will tell what you is going to happen in future. yes, she gives you the forecast. it is the guts of the conference call and for any stock junky, it is riveting. because when i company puts up flawless results over and over, any miss on any line will be regarded as a huge and perhaps negative surprise. once again, though, that didn't happen and instead we got great commentary and i think she was giving analysts the green light

to raise estimates because their azure cloud business is on fire. raise it to the point where it could accelerate later in year is that really so hard to get your head around well apparently it is. because initially right after the bell, before that conference call began, we got a host of headlines, not from the company, but from the reporters some of them computer generated about how microsoft's growth was slowing an the epicenter of that slowdown was none other than the cloud business azure. the engine that has driven the stock has run out of gas which meant that microsoft had to be sold nine ways to sunday, which is it was. and so if you look at the chart, you'll see this gigantic dip down right here this is all after hours trading, before, right here, right here is the release comes out and these are people who are --

there was always reports that came out that was wrong and this all happened while people were waiting for amy to speak and then boom she speaks and a pirouette emerges. this is a senseless decline and it cost people like you fortunes and it is my job to stop that. how do you protect simple, you have to do the work. i call it the craft, actually. and recognize that nobody will have any idea how microsoft is doing until you get to the part in the conference call where jaime gives you the guidance that is how they picked off the losers it is why the stock came right back up after initial headline of pull back investing is hard enough when you have to figure out if the company is met or failed to meet expectations for the quarter why make it even hearder by relying on stories i that out right wrong information when the stories are written by a compute tore beat the other computer generated stories even if they

are not correct. just do yourself a favor, stop relying on this nonsense and wait to hear the darn conference call i like to say there is always a bull market somewhere and i promise to help you try to find it just for you right here on "mad money." i'm jim cramer, see you tomorrow the news with shepard smith starts now. cramer see you tomorrow the news with shigt starts now a supreme court vacancy for president biden to fill. i'm shepard smith. this is the news on cnbc >> justice stephen breyer set to step down. >> his intention is to step down at the end of this term. >> nbc's pete williams first to break the news he's with us tonight on the impact to the court. who will the president nominate? an early look at the potential short list for what could be america's first black woman supreme court justice. >> we will