handsome as this desk has ever been heavy handsome >> unbelievable. nasdaq, ndaq >> thank you for watching. see you back here tomorrow at 5:00 don't go anywhere. adon" om the west coast starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer! coming to you from san francisco. welcome to ""mad money." my job is to give you advice, so

call me or tweet me @jimcramer now, for the past couple of years, we've had shortages all over the case. that's how you get inflation when there is not enough of everything, everything gets more expensive. not anymore. we have hard fwoods, things that go to your house, appliances, televisions. in this case, target, it is terrific for you, the american consumer, not to mention the stock market that's why after a down opening when people were confused the dow gained 54 points yep, target just slashed its second quarter operating market forecast because they have too much stuff on their hands, which means they have to cut prices, and that is music to the federal reserve' ears. they can hold off on raising

interest rates too aggressively, which means we might get a soft landing. the chief enemy of this market is inflation one more sign that inflation might be peaking if inflation is peaking, then we could buy a ton of stocks we couldn't buy more. namely the high-quality tech stocks that i'm out here in silicon valley to identify no wonder they had some spring in their step today. if you look at any chart of any tech stock, you will see they all broke down inflation way back in november these two new growth tech stocks are about the potential earnings inflation is out of control. we know those future dollars will have less purchasing power. when we see supply guts developing, it means price cuts. it means inflation is calming down and the fed has a better chance to engineer that table soft landing we're so hoping for if we're bullish. which brings us all the way back

to target. this morning the excellent target said he had to dump billions of dollars in inventory to bring new merchandise to the fall where does that go what matters is that these goods, which have been preem yus priced, money of it up imported will now be discounted somewhere at an outlet near you. interest rates down because the pin action out of retail can be used if it is as big as target think about it if this happened in target, it's certainly happened to other retailers like amazon. that's why the whole retail got hit again today. let's consider what this means for you and your portfolio we're on glut watch. give me more measure they're not going to stop tightening we need, say, mortgage rates to cause mortgage applications to go lower but it is likely we're hit with

a series of 50 basis point rate hikes. that means we can look at the more beaten down tech stocks as long as they're profitable we spoke last time or broadcom have become more attractive. these are about the future earnings less inflation, more future dollars, more valuable it means a spectacular earnings from salesforce.com. a much higher stock price for the same reason. now, stocks have become -- they have been the hardest since november once interest rates started coming down, they can bounce back the hardest. that's why we stay in there. i told you to stay the course. keep that in mind when you see these stocks make a u-turn today. you can't find out otherwise other than to realize that target said interest rates lower. but salesforce is a stock that's become a lot more attractive in

a world where inflation is moderating and long-term interest rates are coming down although salesforce might look too expensive in inflation, you take away that inflation and you see growth at a reasonable price. i'm using salesforce as a metaphor there are so many stocks we watch particularly in the tech market that become less highly valued in the sense they're less rich that means they're better for you to buy what else can you buy? they also have some very difficult logistic problems. merchandise came late after it came out of fashion. the bears will say people can't afford to shop at target because the price of gasoline is so high this crowd will buy the recession proof stocks so even though we have some evidence that the economy is weakening, they think that, you know what? it means that you have to buy

companies like health care, consumer products, food and drug eli lily which was rewarded yesterday for a weight loss drug gets rewarded sky high today finally on fire. as for drugs, j&j gets whipped after weeks of heaviness that's lower rates talking not anything new at the companies as much as we want to believe otherwise. it is interest rates specifically then there is another gift that leaves everything revolves around the price of the pump these guys hold it as self-evident that gasoline and heating oil and air-conditioning bills will send us back into a recession. see, they don't care about the electric cars and the rise of remote work. they just look at oil prices and say, well, come on there can be no hope for a soft landing. instead, we're crashing. these people take action, too. see, they love every oil and gas

stock. now, something strangely i agree with because we bought more oil today for the travel trust and the subscriber to become a member of the investment club. you see the investing club takes action like on this particular group. now, i require somewhat of a hedge, but we like the rates like exxon or chevron. we also like devon if you are managed your own money, i'm telling you you have to earn royal stocks here, even after this rally wall street recognizes that. new highs today even as some people felt inflation could be peaking. this market is so fickle that this could reverse when we get the sales price at the end of the week the game plan i told you on friday could drive interest rates higher, putting this on

ice, likely trickling down to retail because i have set myself up as a glut watcher, i simply can't be negative about what we just heard from target. it's too big i think this forecast cut is even good for target itself. a stock that has now come down 42% from its high. short-term, look, i'm no fan of retail terrible trust stocks on retail return there is just too much of the wrong merchandise in the system. merchandise bought for the stay-at-home when we have a back to normal economy and a travel economy. this is the time for luggage and it's suit cases. it's time to sell cosmetics. people go out. they dress up. good thing we have the nation's fastest growing nation company on tonight but the real green bay here is the beaten techs we are examining why we came out here they might deserve a bit of resurgence if they have profits

and if they have buy backs and dividends like broadcom. the bottom line, look, i wish it weren't as simple as black and white as buying interest rates when stocks go down or as simple as buy oil, but that's exactly how it is. so please embrace it this is not a subtle market. i don't want you to overthink it, because sometimes it can be easy let's take calls let's go to josh in florida. josh. >> yeah. i'm looking to start a long-term position in bed, bath and beyond and wanted to get your position on whether or not i should start that before the earnings call or wait until after, the upcoming earnings call. >> i think mark is a good merchandise manager, but i haven't liked like i see when it comes to buyback or technology on seats as much as the stock looks cheap, and it is, historically it is not cheap on an earnings

basis, so i cannot recommend a company that's losing money like they are guys, this is not a subtle market on mad tonight, the san francisco check tour continues the ride companies struggling to rebound along with the greater economy. i'm digging into the highs and lows with the co-founder and president of lyft. elf can buttefy your face. what can it do for your portfolio? and amid the tech tumble, broadcom has held up better than others a great acquisition. i'm finding out what's about to come with the ceo. so stay with cramer coming to you from san francisco don't miss a second of ""mad money."" follow @jimcramer on twitter send him an e-mail to

madmoney@cnbc got come or give us a call. miss something head to madmoney.cnbc.com. how do we show strength and stability? (eagle call) a mountain? a tree weathering a storm? (thunder)

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all right. a month ago we got a widely painted forecast from lyft, the big ride sharing company the guidance for the current quarter was ugly suddenly, they were spending a lot of money to improve their experience lyft stock had already come down from $68 at its highest last year to $30 for the quarter. about $17 and change today so what do we do with this

lyft is attracter at a buck this year just 17 times earnings, one of the cheapest stocks we're making out here if they could make those numbers, the stock would be huge why don't we just check with the co-founder, vice chairman and president of lyft. welcome back to "mad money" in person. >> good to see you in person. >> all right there are a lot of people watching and they didn't use money. all they know is they like lyft. they hear the company might earn a dollar next year they might say, wait a second, if the forecast stays ugly, they can't do it. has there been any turn? are things doing better? >> overall, if you look back to the start of the pandemic, we were hit with the pandemic that everyone was that shut down 70% of our business. during that time, we improved our ebida by $800 million. we made massive improvements in q1 on the quarter we just reported on, massive

improvements on the rider side four million more riders active on the platform again. yeah, we're seeing good signs of the momentum. >> i'm not going to comment on that i can't go forward. >> as a negative, lyft is spending money like a 1980s rock star this will have a violent negative reaction in an already jittery market fair >> no. i'd say that's a little overstated a lot of the investments that we have and that we talked about on our q1 earnings call are within our control. as we see changes in the market, we can pull back and adjust any of those investments. >> now, are you having better luck getting drivers and also given the fact that gasoline is so high, are people intimidated by it? >> the driver equation is improving. as i said, 40% active drivers year over year improvement and the number of rides a driver does over 20% more rides per driver

versus 2019 in q1, so that's improvement as well. now, things are not back in some places, right? in san francisco things are not back the way they were during the pandemic, some parts of the east when is that going to come back? >> hopefully as soon as possible obviously not fully in our control. >> right. >> but we're doing some things to adjust to the change in market dynamics. as you mentioned, on the east coast, we have markets in miami, new york upwards of 90 plus percent since the pandemic in recovery, in some cases going above where it was before the pandemic. in somepl places you are seeing 50% recovery we're rolling back shared rides. it represented 20% to 30% of our rides pre-pandemic but when it was dangerous for people to be next to each other, we turned off share rides. that's a huge opportunity for us to grow into on the west coast as well as on the east coast. >> also, demographically things have changed

you talk about blue collar demand versus screen demand. why is that changing >> yeah. at the beginning of the pandemic, there was this luxury of those that could sit behind the screen and work, and many of those just have to get to their job site maybe they tried lyft for the first time instead of public transportation and are now building that as part of their transportation equation. we have seen this growth on maybe blue color workers who need to get to a physical location. >> yes you got to be there. now, you have pointedly deviated let's say differed from uber in terms of a focus, laser focus on transportation but not just autos that's your theme. how is that working? >> it's working well we talked to one main consumer who wants to get from a to b and we provided them with all the options. you know, whether that's a bike in new york city we have city bike. whether that's a ride share, a

shared ride or a rental car we now have on the platform, it is all someone trying to get from a to b by focussing on that, we can get a better experience. >> a scooter person might be saving money on gas, too, right? >> yeah. we have electric scooters, electric bikes and electric cars. >> how about electric cars that are autonomously driven? is that a threat to you or good? >> it's a huge opportunity we see there will be a hybrid network. meaning on day one, just like with what happened with phones you didn't go on separate networks you still needed to be able to make a 3g call when 4g wasn't available. the same thing will be autonomous vehicles in that they won't work for all times 90% of the time you will rely on a ride share driver. >> now, one thing i like very much that you're offering is

you're giving mental health care to people. i have a long stretch -- a long stretch that mental is the same. they're the same thing it's not your elbow. how is that? do people appreciate what you're doing? >> yeah. especially as we go through the pandemic and people are -- some are working in the office. some are working at home letting team members know we care deeply about them, their experience and want to invest in them is doing really well for our recruiting. >> i know from "people" magazine, this is personal experience i wrote a whole book about it, so i'm no secret obviously you care to put your company's money where your mouth is and it's good. >> absolutely. we have an empathetic leadership team that we do that because it is the right thing but also because it is good for business. when you have motivated team members that are happy and healthy, they do good work. >> i know people are thinking about it the possibility of earning next year or thereabout, something that is aspirational or

something that is perfectly in the realm if things stay the way they are in the country. >> i can't give forward guidance i can say we're confident in the outlock ahead. we made no major changes we're seeing positive signs in the marketplace and making the right moves to put us in the best position. >> all right that's what i want to hear thank you so much. that's the co-chair and vice president of lyft. came on before the company goes public coming up, can this stock made your portfolio feel pretty, oh so pretty cramer faces facts at the cosmetics counter next

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should know there is more to san francisco than tech. they got high quality companies that sell for profit companies like e.l.f. beauty, a cosmetics company based in oakland. it was originally team focussed and broadened its appeal since they started selling to target double digit sales and earnings that doubled wall street's estimates. even the forecast wasn't perfect, the stock could explode higher so can the stock keep piling let's dig deeper with the chairman and ceo of e.l.f. beauty welcome back to "mad money." >> thank you for having me. >> i have to tell you, you put up some incredibly impressive numbers. what were the drivers of that last quarter that were so magnificent. if you can, how were you able to, up and down global markets while everyone else is decreasing >> we had our 13th year of net

sales growth and finished with 22% sales growth, 22% ebida growth it is a continuation of the strategy we successfully executed over the last three years, our ability to engage consumers with prestige quality products at extraordinary values. >> let's talk about that because the share take in an industry which has been hard to shake up has been monumental. can you tell our viewers how you leapfrogged other brands that have been in the medicine chest for years? >> i think it is our ability to engage core consumers. we just became the most favorite brand amongst scenes so our ability to speak to them in a way that's relevant. we just passed revlon, and we're the only top five brand to pick up 120 basis points a share in the last couple years. >> yet, at the same time, you're incredibly sensitive to the fact that not everybody can afford to move up.

you have a pricing strategy i really like. >> we did have to take pricing about two-thirds of our items. these are items that compare to prestige quality products. so taking off a little bit made them an extraordinary value. one of the things we're conscious of doing is keeping our price points untouched so our $2, $3, $4 items we didn't touch because we wanted to make sure every consumer had access to our products and even those on a real budget and those that want to get better than prestige, can get it. >> especially with the rising gasoline prices. the first thing people say when i ask about business, you know, you understand china there is a lockdown. we can't get our equipment i read through your quarter. it didn't stop you at all. you navigated the supply chain perfectly in china how was that possible? >> we have a phenomenal team in china. our entire team is in the shanghai area, so they were

indeed locked down for two months in their apartments between them and our exceptional suppliers, we're able to stay in production and able to maintain 95% customer in stock, so i'm really proud of our team. >> you should be you should be proud of them. now, my wife and i love target and i bought home a sample you gave me. and my wife saw e.l.f. at target and said, jim, let's get this. this is terrific you have managed to appeal to all demographics now, something happened there that getting into target was a big game changer as it was with ulta how did you do that? >> well, i think our strength, we're a pioneer digitally, a digitally native brand and our strength of consumers bottom line, we have the number one mass e-commerce and our value equation appealed to target. target has been a phenomenal partner. they're our langest standing retail partner we grew our business there over

40%. we just passed neutragena. >> but they have an unlimited app budget how is that possible >> i think it's more than how much you spend with the consumer it is how you engage them. we're a pioneer digitally. we're one of the first on tiktok our latest challenge generated 14 billion views, four different hashtag challenges we have done. we're one of the first beauty companies in gaming. we have a channel on twitch. we tend to be where gen z tends to be and we engage and entertain them. >> i have e.l.f. cosmetics and dunkin did this work? >> it works phenomenal well. it does. because if you think about it, we're two like minded disrupters you put these two brands together and do a collaboration, and that collaboration we had five billion views. >> let me ask you.

you are known as a diverse company. a lot of people feel these days in this polarized environment, that's forced. how much of your growth is because you are able to be in touch with them? >> it's fundamental to where we are. best of beauty made accessible to every eye, lip and face we need to make sure our company reflects that. our employee base is over 80% women, over 40% diverse, over 60% gen z and millennials. but it's not just our employee base all the way to the top our board of directors is majority women actually over 50% women. 40% diverse. we're one of 25 public companies over 4,500 that have those kinds of stats it's embedded in the dna of our company and so essential to our success. >> would your advice be perhaps you have to think more about service? >> absolutely. i think i have heard excuses

over the years about why there wasn't enough representation i would like to tell you it was hard, jim, but it was easy when i said i wanted more women on the board than men, we got the right recruiter, we were able to go after it and we have a phenomenal board i would put our board over any board in the country. >> what great numbers. the chairman and ceo of e.l.f. it's e.l.f. beauty stocks are up today. i's not done we'll be back after the break. coming up, a new partnership with vmware is in the works. find out next. (vo) hi. we're visible. a new kind of wireless company. started by this company. (hi, dad.) other companies pay for stores. which means you pay for stores. but this is our store.

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does a major acquisition mean a new pivot to rich acquisitions this giant is making plays our new opportunities and exciting antidote to industry headaches. >> throughout the tech meltdown over the past six months, you know what held up better than most broadcom, focussed on networking equipment and the data center with hardware and more importantly a software kicker. this is down 15% from its late december highs because the stock is so darn cheap it's got almost 3% field but it is also because broadcom is doing just fine strong second numbers with encouraging guidance for the second quarter at the same time, perhaps much more important, shelling out $61 billion in cash and stock to buy vmware if that wasn't enough, they announced $10 billion guyback on top of the $3 billion repurchase

plan already in place. in response, the stock jumped nearly 10% over the next two days although, it's given back a little since then. this is the stock i want you to be thinking about. earlier today, we got a chance to speak with top ten, the brilliant president and ceo of broadcom right after the purchase of vmware take a look. congratulations. this deal i think is the capstone tell us about how it will make your business 50% software because that is so exciting to all of us who appreciate the growth you have always had. >> right we think it is great it is great a acquisition for us you know, it's very incredible in line with our strategy of building the leading provider of infrastructure technology. and this acquisition has all the attributes we see.

we have the leader growing global market, blue chip customers and they have incredible talent of engineers, very innovation centric out there. this is exactly what it is all about. >> now, do you think there is enough overlap with vmware and your current broadcom salespeople that you will be able to offer both hardware and software can that work? >> launching software. because our hardware tends to be sold through systems integrator. but software absolutely. combined with broadcom, existing supply of petroleum. we create a uniquely possible value proposition to our enterprise customers one that will enable them to effectively run on developed, run, manage the applications

seamlessly, securely across from on prem, private cloud to multicloud. >> and i think a lot of people don't know your core business is one that is excellent throughout. it's always pronouncedment and you have customers that people don't realize you have for instance, you talked about meta, facebook, even being a billion dollar customer. your customer lists are all the big companies, and they seem to love what you do for them. >> absolutely. we sell on technology. we create the best leading edge technology out there that enables what is the underlying fundamental trend going on today, which is every enterprise out there needs to expand, create and expand a digital footprint in order to be more efficient, productive addressing what is needed and we are the enablers of making that happen >> now, one of the things i have

been saying on "mad money" is we're looking for companies that make things, do stuff that reward shareholders and have a reasonably priced stock. i have to tell you, in the same breadth of buying vmware you immediately talked about what you were going to do for existing shareholders. why can't others out here see what you do in terms of your realization that the shareholders own the company >> well, you know, we never lose sight of this focus. one is that we're there for customers. we're there to make sure and provide great opportunities and succeed. but equally, we're there to deliver consistent, compelling value to our shareholders. they are a big part of the reason we exist. >> and you immediately talked about buyback, that dif dent is a very positive division of cash flow people again out here they don't

think like that. why do you recognize that to build that stable stable group of shareholders allows you to do these great deals and then you do them creatively it is not a waiste of their money. >> absolutely not. the way we think about why we issue dividends even as we keep on a strategy of acquiring great assets is simply that we feel shareholders to think of us as a long-term investment, as a long-term play we feel that we are rewarding them as we progress, as we advance, which is why we save. we put aside half cash as a return of dividends. and the other half in return, they let us keep to do the next deal and grow the business. >> all right well, my colleague david said, you must ask if he's out of deals. now he's buying companies as big

as vmware. is there anyone left >> oh, i'm sure there will be. but i'm focussed one deal at a time, and this is vmware. >> okay. so, i'm not hearing anything about inflation and about the pace of economy, about concerns you might have, about what the fed is going to do that's never been your style you just don't seem to focus on that at all. >> well, no. because i think we are fairly unique in the way we focus on the business to start off with, i have a great advantage. i have a strong tailwind in my business and the business odel which is about technology spending, technology needed to create digital transformation. i know you heard that a long time. >> sure we have. >> every enterprise needs these days to modernize themselves and create a visual footprint. and broadcom with 22 different

franchises out there, key franchises in technology enables that to happen in fact, jim, i got to tell you, in 99.5% of every bit of data that falls in the internet, we'll cross at least one or more broadcom chip. >> that's incredible when i look at your complete mosaic, every one of them is doing well. it is almost like you don't tolerate divisions that don't perform. >> frankly, i don't. i don't. these are -- the key criteria is sustainability to qualify as a division on the broadcom platform, you have to stand alone, and you have to sustain your business, your mission for the next ten years at least >> i want to urge people who want dividend income, consistency, and a very

inexpensive stock that you have delivered and delivered and delivered for broadcom thank you so much. it is absolutely great to see you. >> jim, my pleasure. >> just chill out. >> the cho man is in the house he's happy. >> the lightening round is coming up when "mad money" returns. another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™

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lightening round is sponsored by -- it is time play this out. and then the lightening round is over are you ready? start withic moole in arizona.

michael? >> caller: hey, jim. first-time caller. long-time listener. >> i love that what's up, michael >> caller: you have been my honorary cfo for many years. >> geez, thank you, buddy. thank you, michael thank you very much. >> caller: yeah. my -- >> flat lines are losing money even though they may make money next year, we won't go with it the market is too hard for that. we need to go to peter in texas. >> caller: hey, jim. first-time caller. long-time winner first, what do you think as a long-term retirement portfolio, whatdo you think of enbridge >> the yield is terrific and the company has growth can't beat that combination. john in new jersey

john >> caller: thank you very much for taking my call. >> my pleasure. >> caller: i want to first say personally from the heart that the episode you did years ago on 9/11 and the world trade center was some of your best work. >> thank you. >> caller: it was greatly appreciated by the people out here. >> thank you worked hard on that one. thank you. >> caller: yes, you did. the company i'm calling about today is axogen. >> they're trying to do stuff. we're familiar with the work it's a medical device. you have to stick with tried and true has to be within johnson & johnson and that's the one i bet the money. anthony in maryland. >> caller: mr. cramer. boo-yah! >> what's up >> caller: yeah. my question is about metlife, kicker symbol met. >> so cheap. it has a 3% field. it is incredibly yield i will have to say yes to that

even though i'm not a great friend of the insurers because they have been so tough. let's go to brian in massachusetts. brian! >> caller: what's up, my man >> loving that hey, listen, a could have series you can still win. >> caller: we got this season 5 anyways, i got the stocks. drdg. >> yeah. okay, so that's real estate that we don't really know what they do i always say, pass because there is too much room for error let's go to william in missouri. and, william >> caller: hey how are you doing, jim a big boo-yeah to you. >> all right what's up? >> caller: okay. i'm a long-time listener to you. hope to meet you one day but my -- the one i'm watching the most is ftch.

>> oh, so tough. when we have an outfit like target that's struggling, how are we going to two with farfetched i say go with target and that is the conclusion of the lightening round sponsored by td ameritrade. cramer sits down with a cyber security powerhouse next

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we do a lot of cyber security coverage while we're in san francisco because right now it is one of the most resilient parts of tech infrastructure the one top stop for all your cyber security needs we spoke to these guys less than three weeks ago after the company reported really terrific quarters right when the rest of the market was falling apart since then, the stock is valued more than 20%. i wouldn't be surprised if it has a lot more room to run this week they're attending a conference in san francisco and we went to catch up with them. there is a lot more to this story. let's take a closer look the chairman and ceo is joining

us straight from the conference. welcome back to "mad money." >> thank you again for having me, jim. >> you are the person that can really fill us in. maybe the greatest growth area in the world right now is cyber security and the stakes just keep going up and up and occupy you are talking about now average ransome payments of 75%. >> as well as 70%, right >> yes >> we're at 60%. we're just three times larger. so it is hard to maintain 60%. >> it is hard to maintain that george is a great guy. when he grows up, he will be as big as palo alto. >> let's put that aside for a few minutes. maybe not get back to that something that's changing is something you talk about, which is that we need to have new zero trust approach maybe if we do this, the government will join you

if people don't do this, they go after you. >> yeah, look, jim we have ten years of legacy infrastructure in it stacks everywhere the government, our country, other countries and every enterprise so you can't just wish it away it is going to take us ten years to replace that stack with better answers now, for that you can start now. if you don't change it now, if you don't do the right thing now, you are never going to get out of this. what you are noticing is that bad actors figured out there is money to be made they shut you down from remote places they don't have to be here physically law enforcement doesn't know how to find them they're sitting in some country that's far away. they're sitting there holding the ransom and asking you to pay in bitcoin all of this is true. so people are paying using cryptocurrency they're not being traced in certain instances. certain instances they are, so it is the wild west right now. >> but this is extortion

this is actual extortion. >> economic albatross. >> indeed! let's be grand about it. they could shut down any product line in this country you're making coins, they could shut it down. >> think about it. on average it is 13 to 1,500 companies being held to ransom in a year. now, this is a good case the good case is you pay me. i have a help desk i will teach you how to move the money to me and help you fix your problems. customer service on that front. >> i know. >> this is the good case the bad cases, they get a superior order from someone saying, don't take money let them stay shut that creates economic chaos. that's why we have to be worried about in ransom attacks turning into chaos creating events. >> let's step back for a moment because you are the leader in the industry right now if you pay ransom for a kidnapping, the government will go after you. >> yes.

>> do you think if the feds go after someone paid ransom ware, the feds would know this is getting too dangerous? >> i think there are a lot of ceos i have been in touch with personally who are caught in a mind where they don't want to pay the ransom and to be fair, some of them mustered enough courage to say i'm not going to pay i will deal with the consequences they have to rush and fortify their infrastructure they have to make sure their backup is available. they have to bring it back up and run their business again so you see a set of ceos and cios make that decision and be brave enough to stand up against it in some cases the impact is so large and they're meantime to get back up is so high that they succumb and end up paying ransomware law enforcement is involved. the government is involved they're trying to figure out a way to make sure we can help businesses tied to this. but it calls for more security awareness and spending more

money to make sure your defenses are fortified. >> i have another way to do it if the bad guys are smart, they will look at who has got palo alto and say it is easy to hack. let me go to the other guy they're not looking at the car with the doors that are locked. >> yes. >> they're looking at the car with no locks. if you are a customer of palo alto, doesn't it pay for you to say i feel better. just don't go after the other guy. >> yes, of course. they are going to buy palo alto there is a likelihood they will be secure in other places. we have a lot of gap between where we need to be and where we are. this requires the entire industry to rally and make sure our customers are secure the most important part is this has to be taken seriously by management teams it has to be taken seriously by boards. >> and colonial didn't make them what does it take to make people feel serious >> sometimes like, oh, it didn't

happen to me sometimes somebody got hit by a car. thank god it didn't happen to me thank god i'm safe it can happen to anybody it can happen at any point in time and the effects are as devastating to you. >> after all these stories, shouldn't we presume it is going to happen to you we all carry auto insurance because we have to presume it will happen to us. why isn't that the case in your business >> there is a reason all of us are showi ing growth george is a wonderful guy. they're doing a great job. >> it is more like yale/harvard? >> it is not a winner takes all. it's we can all survive in a market where we all have the right incentive to secure our customer. >> i'm glad you are out here to do this because i have seen it personally and it is ugly. >> it is it is very ugly. >> and very scary. that's the chairman of palo alto

networks i liked it since you joined it what did you buy it at >> i bought 25 million shares. >> 25 million. yeah 25 million here, 25 million there. right here on "mad money."tomorw "the news with shepard smith" starts now uvalde, texas, native matthew mcconaughey's pitch to curb gun violence. i'm shepard smith. this is the news on cnbc this should not be a partisan issue there is not a democratic or republican value in one single act of these shooters. we want secure and safe schools and we want gun laws that won't make it so easy for the bad guys to get these damn guns. a test on crime for the democrats at the ballot box. the progressive district attorney in liberal san francisco facing a recall. plus, the other primary races to