but i think it has support lower. >> mel, i know everybody is talking about kd the genius of that tarasenko trade. a shoutout to melissa lee when you think about it unh. too cheap here. >> thank you for watching "fast money. see you back here tomorrow at 5:00. you tomorrow for more "fast. "mad money" with jim cramer starts right 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 keep you from losing too much money on days like today my job's not just to entertain but to educate you about how days like this happen. so call me at 1-800-743-cnbc or tweet me @jimcramer. sometimes the stock market feels

like a mosaic where no one piece tells you anything, but when you look at the totality everything becomes crystal clear. so on a day where the averages started strong but then plummeted in a terrible reversal, dow, s&p, nasdaq losing 1.02% i hate these kinds of downturns. let me give you my impression of what's really driving the action first things first when you do look at the whole piece of the pie, you try to figure out what it looks like, it's saying that we have not one but two economies right now. there's the goods economy and the services economy i've never seen the goods economy turn so weak so quickly. just look at mattel. everyone likes toys. and we had them on last night. the toymaker was going full bore into the holidays. made sense all of its toys were coming off record years and everything just seemed to stop sales dried up in october, november then the holiday gift-giving season was truly truncate. severely so. in the end mattel wound up with too much toy inventory just a ton of it and not enough sales that's every retailer's niernl

and it's not just barbie dolls mattel's emblematic of most consumer discretionary goods sales of almost every retailer have hit a wall. maybe we just didn't need more things maybe we were full up after the pandemic on the other hand, when you look at travel and leisure space, everything's spectacular if you've taken a flight lately you know they're always packed no matter what time you travel, no matter where you're going of course there are other constraints on the airlines but the underlying demand is extraordinary. when you get to where you have to go the hotels are booked and they're raising prices as hilton told us today. that company's stock traded up 3 1/2 dollars and bid as high as 5 1/2 dollars. cruise lines royal caribbean, nor weej sxn carnival are racking up amazing numbers. it's like we all forgot those covid petri dish jokes from a couple years ago then again that's the pattern with cruise lines. right? you hear some food poisoning stories, they come right back up it's just what happens i've told you before the travel and leisure stocks are booming

thanks to the life is too short zeitgeist. we all know someone who died during the pandemic. many people have been trapped in jobs they didn't know they despised until covid hit others got to see freedom that comes with working from home or not working and collecting generous unemployment benefits from the government. this covid era create aid virtual landslide of reevaluation, contemplation and ultimately resignation that's been pretty well covered. but the sheer scale of this pivot was so extraordinary that nobody's ready for it. it isn't people learned what it's like to be untethered and they aren't going to take it anymore hey, but you want losers here? it's the flip side of the coin take affirm. that's the buy now pay later financial technology company basically a modern version of lay aquai. the stock was down sharply today. and it wasn't because of a spike in bad debts in fact, the opposite happened bad debts dropped. but usage also declined dramatically especially for electronics purchases. we know electronics has been a

bad group. dell saw a 30% decline in pc sales this last quarter 65 00 layoffs. seemed baffled there could be such a massive pullback in spendinging. people just weren't buying things it destroyed the whole growth narrative. by the way they don't use affirm for travel and leisure it's really for goods. of course affirm's been a -- but things can always get worse, especially if you're in a bad industry these guys are mostly tied to purchase of gsz goods. as i said that's the kiss of death. and there are zero signs that i've seen this turn. if we've got a goods bear market and a services bull market then why is everything so confusing i've got a new theory on that and it took some time but it's coming around. i think it's not that simple there's a key point that's being overlooked by everyone in the media and many in the stock market initially coming out of the pandemic the travel and leisure spike was a broad-based thing but now it's no longer a big tent it seems increasingly like something only the wealthier people can afford. i first heard this story from

kevin hoffman. he's the ceo of brinker's parent -- brinker, that's the parent company of chili's. this company always prided itself on organize food for everyone but inflation made it so many meals are too expensive for working people rather than making everything available to working people, to everybody, brinker's raising prices on the bulk of its dishes while leaving some value options. with that strategy they're now making more money, though, because wealthy consumers are spending on services liquor and expensive dishes. like there's no tomorrow we heard a similar tale from brian nichol, the ceo of chipotle, which took a lot of price and therefore priced out to some degree those who would only be able to afford the burritos again, the rich more than made up for the slack how about disney their theme parks are no longer considered a bargain for anyone save people who are really well off. again, though, the well off have more than enough money to fill the parks and they are overflowing. i'm going to go a step further it's obscured. but the rich have been spending on goods

right now tapestry parent of coach and kate spade we just don't have enough awareness of this trend because of high-end stores they're not public mass retailers sure are. by the way, let's add in sonos that was another one very expensive system. they did great expensive things are selling how do we make money off it? right now i think it's fair to say we've only had one strong number every other number's been weak what is that strong number it's the most important of all it's the non-farm payroll r report and it was truly, truly high every other data point's been weak what hams if you go under the hood of that non-farm report we saw hiring every private sector except professional and business services and more importantly leisure and hospitality. those were on fire 82,000 jobs. i don't yet have a thesis on that but hospitality which enco

encompasses travel and leisure that gained 128,000. i think it's about to get even stronger because it's still below the pre-pandemic level and we need more people. there's a reason the travel boom will stimulate enough boom -- enough business that those jobs will be filled if you're a fed official you need to are recognize the bifurcation. while the biggest purt-sport to hiring still isn't over it is isolated to certain segments maybe you should asterisk some of this travel and leisure bam bug at the same time a huge part of the economy in retail is in real trouble the bed bath and beyonds of the world most likely won't come back but the high ends like the tiffany purchased by lvmh, they are crushing but that doesn't represent the real economy now, you have to ask can the fed figure out this mosaics yaik does the fed want everyone to be able to afford chili's are they worried the price of food which is just as important as labor has goept too fight do they want to solve the problem by effectively throwing a lot of people out of work? it's really hard all i can say is while yes, i'm in favor of the fed hitting us with two more rate hikes, quarter points, this earnings season has proven conclusively that even though the rich are

spending their heads off the poor can no longer afford to get a really good burger or burrito. it's not the fed's job to level the playing field to make the rich equal the poor. jay powell's made more progress fighting inflation than their colleagues want to believe except for this one area bottom line i think price stability therefore is right around the corner. and only the growth in travel and leisure will keep things from making it so the economy's not too hot. then after those positions are filled maybe the fed will declare victory and stop bringing the pain. there's only one area of strength left in this entire economy. and sometimes the feds say let's let that cool off but recognize that the economy's not so hot anymore. let's go to jeff in california jeff >> caller: hey, jimmy chill. i'm having a hard time choosing between two great stocks that you said were absolutely wonderful. and that is crowdstrike and palo alto now, crowdstrike moves kind of

wild and crazy and it's up 8% year to date palo alto's kind of calm and it's up 19% year to date so palo alto's kind of a smooth ride, kind of boring -- >> well, palo alto is my favorite of those two. that is in my bullpen for the charitable trust by the way, alterix was good i think cloud-strike and palo alto networks will go out because fortinet was good too. that's a good idea and i suggest you buy palo alto right here let's go he to rick in california rick >> caller: hey, jim, how are you doing? >> i am doing well, thank you. how about you? skaurl wonderful, thanks jim, i think that you'd have to be a knucklehead to doubt the long-term promise of eli lilly but with that said, since the 1st of december the slide has been pretty ugly that is, up until just a few days ago it seems to have bottomed last week and today it passed through its 20-day moving average. do you think this is is the beginning of the rocket ship we're all looking for?

>> we know interest rates went up today, which is typically not when you buy the drug stocks but i will tell you that the whole group's been under a great deal of pressure this is a wonder drug that promotes weight loss it's not yet approved for people who are obese. it's just for diabetes once that approved, then everybody will know and you need to be in it now and let others take you out 100 points from now. how about matt in texas, please? matt >> caller: mr. cramer, how's it going? good evening >> i'm having a good day how about you, matt? >> caller: doing well. beautiful weather down here. you recently hosted the ceo of a consumer staple company who told a story of a seven-year transformation that rewarded the company with lean price plasticity that was a good quarter in january but since then the stock's been trickling down a bit. yields about 3 3/4, about 15 times next year's earnings what are your thoughts on conagra as an addition to my dividend portfolio >> the whole segment has been

crushed. and you hit upon the one that had the biggest upside surprise. by the way, kellogg's today. nobody cared i think it's a good place to smart -- smuckers for a second there. smart. good place to start buying but don't buy all at once because the group is in bear market mode this group has fallen out of favor and all you have to do is look at the stock of pepsi which had one of the best quarters i have seen this year. and what'd it do it went up a buck and a half after being up more than three points at one point today. i think price stability's right around the corner. and it's just travel and leisure for the rich that's all that's left that's strong on "mad money" tonight xpo fell today after earnings so could this be an outsize reaction and a buying opportunity? i'm taking a close look at the action with the ceo because it was baffling then the second iger era has begun at disney. amid a major restructuring is the magic back in the house of the mouse what you need to know. and soaring after earnings does

new relic's stock has a new lease on life? trying to make a comeback here looking at the numbers with the company's top brass. stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer hashtag 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. ♪♪ i was having challenges with my old bank. lots of red flags. fees, penalties. so i broke up with bad banking and moved on with sofi checking and savings. now, i earn higher interest on all my money,

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journey with a free trial today. i screwed up. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo!

i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck. what the heck went wrong with the stock of xpo? the trucking company's been breaking itself up over the last couple years first they spun off the

logistics business gxo in 2021 then their truckload brokerage business as rxo late last year what is left is a company that's focused on north american freight business with a european division they also had planned to sell but looks like that process may be delayed because of the sorry state of the capital markets. xpo reported what initially looked to me like an in line quarter slight revenue miss but a decent earnings beat look under the hood there were some issues. xpo's yield the revenue per volume moved came in at the lower end of management forecast let's find out what really happened because it could be weather-related. initially the stock was -- opened thereat i get that but over the course of the day it collapsed finishing down about 14%. i'm a little shocked this wasn't a perfect quarter but i don't think it was particularly bad either. certainly not down 14% bad that's kind of crazy don't take it from me, though. let's sort this out with mary o'hara, ceo of xpo welcome back to "mad money."

>> thanks so much for having me. >> so meir, this was a pretty good quarter certainly as you described in the met wrkzrics better than yo competitors. you have a lot of things going right and also a pretty good bullish forecast and your multiple is very low so what the heck happened here >> jim, sometimes the market gets it right. sometimes the market doesn't get it right when you look at our results he we had a solid fourth quarter. we grew our adjusted ebidta by 53% on a year to year basis, grew our adjusted eps by 53% adjusted ebidta by 38% and we grew revenue in a soft macro. so very solid quarter and excited by the long-term outlook of the business and our plan we're going to execute on over years to come. >> could it be was december a weak month >> december was weaker from the overall freight volumes perspective, but it was impacted by weather in the back half of december

but our january volumes are up and to the right they are better than typical seasonality and better than the fourth quarter despite the softness we're seeing in the industry so the industry's going down on tonnage. we are going up on tonnage >> i was positing with ben soto who works with me perhaps j.b. hunter reports a not great number but it's not horrible old dominion reports a good number and really good outlook your stock goes up twice once and then the next time off those two. so then when you're reporting it gives back a lot of what happened during that rally but i could argue that you had a better quarter than both of those companies. >> i agree with you. overall, again, you look at revenue growth, you look at volume growth, yield growth or pricing growth as well, and we continue to see that strength here early in the first quarter as well. >> do you think there could be some people who just say you know what, this company, they told me that if they did all -- if they merged europe with u.s. and they spent a lot of money on brokerage and spent a lot of money on logistics you would love it because it would be all

together and then brad jacobs said you know what, we have -- and he undid it and expected us to like it and maybe people just said i've seen too much break-up here, i'm like moving on >> listen, we are very confident in our plan. when you look at our north american ltl, or less than truckload business, it's a great industry a bedrock of the economy and we have a solid plan to grow margins, to grow earnings and capture profitable market share while capitalizing on a strong pricing environment in the less than truckload industry. >> at one point in your conference call you say volume fell basically for the whole industry but not for xpo, which grew tonnage maybe it's some sort of group move that just says that in the end you'll be pulled down at the same time. >> listen, when we look again at the first quarter, we are anticipating volume to be up as well, which goes contrarian to what we're seeing in the industry >> yes, it is. >> and we saw that in the month of january >> you're spending 525 million on capital expenditures. that is a statement that you

believe. >> we absolutely do. it's the higher return on invested capital business that generates more than 30% auto i.c. so the more capital we deploy we can add capacity so we can gain profitable market share and operate more efficiently >> you also indicate that while we had the supply chain problems you're not part of that, you've been training drivers, you've got the good fleet of -- you also have the trailers you make the trailers. you're training drivers. where are we in terms of xpo's ability to be able to help the supply chain mess-up >> well, first let's start with drivers. it's always been tight to hire truck drivers. but last year we graduated more than 1,700 truck drivers from our driver schools and our own manufacturing facility of trailers and we are the only carrier that can produce trailers we produce more than 4,700 trailers that we added to our fleet as well. >> so you clearly had to have been a part of what people are saying to me that the supply schan woes are indeed easing >> they are definitely easing and we're hearing it from our

customers. today 2/3 of our customers are industrial companies you look for example at the auto sector where the auto sector had pent-up demand but now we are seeing those supply chain woes easing up and they're being able to fulfill more of that demand, which is showing strength for example in the auto industry >> now, i had become a believer in the last four months that europe of all places is actually getting stronger now, i know you had plans maybe to off-load europe is there any sense that maybe you should keep it because europe's suddenly taken a turn for the better >> listen, we always look at every decision we make as how are we going to create the most amount of shareholder value. now, when we look at our business in europe, we obviously spoke in december about stopping the process on the near term however, the business is performing really well in the fourth quarter, jim, we grew our revenue on a constant currency basis by 9% and our ebidta on a constant currency basis by 10% though it was a soft macro in the european market >> i'm just going to have to say that unless people really believe that there's going to be

a recession coming in the next three to six months they have got a chance to buy xpo much cheaper than it was just three or four days ago for no reason whatsoever because it should have been more expensive so i want to thank you for coming back on "mad money. that's mario harik, ceo of xpo, a company you'll be following for years and made a lot of money for you that's doing this break-up what's left here seems very interesting. at these prices. "mad money's" back after the break. >> announcer: coming up the bob iger era is officially under way. again. cramer breaks down the mouse house's earnings call with its new big cheese next

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last night disney rolled out its most successful sequel in ages bob iger 2 now, you never know what you're going to get from a disney sequel maybe it will be a billion-dollar blockbuster like "frozen 2" or "avatar," which

just became the fifth highest movie of all time. or maybe it's a straight to video trash fire like "the lion king 2" or "little mermaid 2." two movies you never knew existed unless your kids were exact liv the right age in the late '90s. iger's return to ceo feels more like the former than the latter. yet the once and now current chief executive only took over a few months ago and the business seems already back on track. becoming one of my favorite turnaround stories which is why we own it large for the charitable trust in iger we trust not too long ago disney was indeed a disaster. under disney's predecessor bob chapek the company was almost run into the ground in a short period of time even though disney's got a legion of wildly popular franchises none of them could offset mismmth he finally got himself fired after the last earnings report three months ago awful quarter. billion and a half dollar miss where chapek sounded out of touch on the conference call he was like giddy. i wasn't giddy we own the stock for our trust

we weren't giddy that's how we ended up with the iger restoration this is the guy who ran the company in its glory days. and though he made some mistakes in the end i wasn't craze by the price he paid for fox, but overall his tenure was phenomenal for disney shareholders phenomenal iger spent the past few months reevaluating the business, coming up with a plan to turn things around and change the narrative. that's exactly what he delivered. overall the numbers were solid better than expected sales up 8% year over year on top of a monster 21-cent earnings beat off a 78-cen basis. that's why the stock flew up it was right to go up. we also got higher than anticipated subscriber numbers for disney plus -- disney plus, their streaming service. the only real blemish on the quarter was softer than expected average revenue per user for stream but that's nothing compared to the strength in the rest of the business disney plus, it's for real at the same level -- okay, theme parks were on fire 27% revenue growth

39% operating profitgrowth these are huge numbers fueled by the life is too short thesis i keep talking about at the top of the show. after being locked up for the better part of two years, anyone who wants to go to disney world is heading there as soon as possible what a fabulous business it's always been. meanwhile, their media and entertainment distribution business had mixed results only 1% revenue growth. they gave you a smaller than expected loss. but then that disney streaming services which include disney plus, espn plus and hulu, only lost 1.05 billion when the analysts thought it would be more like 1.22 billion down from nearly 1 1/2 billion in the previous quarter. let's just say it's going in the right direction. still burning money but not nearly as much as it was and by the way, espn plus doing quite well now, you can argue it was the huge losses in streaming that cost bob chapek his job. the fact that iger's already making progress on this front is a big deal and disney made it clear those losses should shrink by another 200 million in the current quarter. why would you say that unless you can do it? really though the numbers are just the tip of the iceberg. i always tell you to wait for the conference call and this

time disney bowled us over with new positives. he's reorganizing the business into three units disney entertainment, espn and then a grab bag division with parks, experiences and products. basically he's unwinding the previous reorganization under the predecessor because he wants each unit to be responsible for their own profitability of making their own projects. makes sense. when chapek took power away from the studio heads he ended up losing control of the company while obscuring and ultimately obliterating any accountability iger doesn't want that to happen again. the old model worked just fine, why not leave it at the same time iger is laying off 7,000 people that's a lot of people and he's aiming for huge cost cuts 5.5 billion in total 1 billion of that was already planned. still if he pulls it off i will indeed stop worrying about an engorged balance sheet iger said it's really not a problem. i thought i was a worrywart when i listened to that just as important iger changed the narrative on the call last night he talked about how there were two significant transformations during thinks first reign as ceo early on disney had an era of growth where they acquired pixar

and marvel and lucas film only allowing themselves to create huge lasting franchises that would come to dominate the entertainment business then iger said there was a second era focused on the creation of compelling digital platforms like disney's three mainstreaming services iger said the company's now in a third transformational era this time he's focused on profitable growth which i love. music to the ears of wall street listen to what iger told my "squawk on the street" compadre and good friend david faber this very morning >> we reiterated that yesterday on the call. so now as we've looked to basically becoming profitable and figuring out how do we do that, it's clear to us that we do have to continue to grow subs but it's not just about that we have to have the right pricing. i talked yesterday about promotion. we have to have the right marketing. we have to have the right content. and if you go back to the structure that we put in place, which is a direct linkage between the creative side and the distribution side, there is a greater likelihood that we

will have the right content. >> i don't know. sounds like a good plan to me. how about you? finally in a surprise move iger also announced he'll ask the board of directors to reinstate the dividend albeit first in modest fashion and it will be done by the end of the year. that's possible because of cost cuts now, if you don't remember, disney suspended its dividend when covid hit in 2020 and they never brought it back. after that that was bad they were spending so much money to build out the streaming platforms they couldn't afford it i certainly wasn't expecting the dividend to come back. that was a surprise on the call. even at a small level, which is what iger says we'll be getting. to me that's a huge siphon confidence from management but altogether this was a terrific update from disney. i'm a little surprised that after opening up at more than 5% this morning the stock ended the day lower. although that's probably because it really indicate came in hot up nearly 30% year to date as of last night's close as we've been telling members of the investing club and we did this multiple times just today disney's got some of the world's best franchises but they could never unlock their value under the old regime because

management seemed incapable of a narrative flow but iger is just a better storyteller. much better. makes sense, right he's a hollywood guy how can we be sure because so many analysts focus on the number of subscribers of disney plus the company racked up, not how well the company was going holistically and that's something iger is changing that's no longer the narrative see, the analysts had made it into a junior netflix, when it's actually a terrific senior growth company so no more breakout of sub numbers and i say good riddance. they were always a crummy way to look at the company. profitability, on the other hand, is the only way to look at disney and that's what hieger gets i'm not the only one that was happy about the quarter. one of our favorite activist investors nelson peltz got involved he wants a proxy fight to get his hands on a board seat. but after today pelts has apparently seen enough because he's calling off the dogs. shortly after iger's interview within "squawk on the street" pelts called in to speak to me and announced live on the air he's dropping the proxy fight. nelson peltz has a tremendous

record he's working with tryn, which is his company. and if he believes in iger maybe you should too here's the bottom line for the first time in a long time disney finally feels like it's back on track while the stock's already had a monster move since the beginning of the year i'm betting it can have a lot more upside now that iger's turning things around and bringing the magic back. let's speak to tyler in massachusetts, please. tyler. >> caller: jimmy chill, i've got a fun one for you like your eagles this weekend. >> oh, man chill's listening. what have you got? >> caller: yeah. so with the content wars of streaming going on, with cierre ceo and founder reed hastings leading the company and with the account strictness at netflix, do you think netflix is a buy right now? >> well, obviously, i mean, i think we can say as my old trading mate karen cramer would say, are you kidding me? you really missed it, chief. she would chief me, not jimmy chill me but i will tell you i think it's a great situation.

the stock could go down and then you do have to buy it. let's go to rick in my home state of pennsylvania. rick >> caller: hey, jim, boo-yah >> boo-yah, my friend. what's happening >> caller: new cumberland, pennsylvania >> excellent that's all good news >> caller: what's your thoughts on penn national gaming? >> the world has changed now we're back to liking -- that's why my charitable trust has owned wynn throughout this because wynn is the best in vegas, in boston and in macau. boy, thank heavens those guys are back on track. speaking of back on track disney feels like it's back on track. while the stock's had a monster move since the beginning of the year i'm betting it can have more up side and you should buy it as it comes down. check my club bulletins and you'll know when and where and why to buy hey, much more "mad money" ahead including jimmy chill's exclusive with new rella after reporting a strong set of numbers for the third quaerd

then nelson peltz declared the proxy fight with disney was over earlier on "squawk on the street" as i said. so what changed. and what we can learn from the situation. that's my takeaway i'll differgive you my take and all your calls in tonight's edition of "lightning round. stay with cramer

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every now and then we get a reminder that companies can indeed change their stripes. take new relic the cloud-based application performance monitoring play. we used to follow this one pretty closely when the cloud stocks were hot. then the whole space got very crowded it felt like new relic was losing out to the competition. splunk, data dog or even cisco's data dynamics. but then new relic changed its

strategy they adopted a variable consumption base business model. that's not unlike snowflake or even amazon web he services. most of the cloud outfits charge you a flat fee at the same time they brought in software veteran bill staples the ceo. now, it's taken a couple years but now that we're no longer in bear market mode for enterprise software new relic's caught fire the latest move came after they report aid truly blowout set of numbers. up 18% yesterday even after this new relic's down more than 50 bucks from its 2021 highs. so could the stock have more upside let's check in with bill staples. he's the newish ceo of new relic. to get a better read on the quarter. mr. staples, welcome to "mad money. >> thank you, jim. it's a pleasure to be here >> i've got to tell you that trying to get people to understand new relic is a little difficult unless i pick out one of your most marquee climates. it's an outfit i know that i want others to know, which is an outfit called william hill

and people may not know but william hill is a gigantic -- well, it's a gambling site and they do 5 million transactions a day, which i imagine if they go down, say, tomorrow or the next day because of the super bowl it crushes them they can't afford to go down so please tell us what new relic did for william hill >> william hill's a fantastic customer to start with they've been a customer for new relic for some time. and we've worked with them, brought them into the new consumption, modern consumption business platform that you talked about earlier and in this quarter they quadrupled their commitment with us it's because we offer a platform that lets them standardize their observability practice and bring all of their engineers into one place so that they can move faster and continue to serve their customers with world-class service. >> all right let's say someone hacked them or

let's say there's a definitely slowdown you can identify. would it be new relic telling the engineers or would they just see it on a dashboard? >> yeah, our software serves engineers and gives them the data that they need to make better decisions and it's aa cross a whole set of scenarios. but to make it simple we effectively do two things for our customers. and it's especially important in this uneven economy. we help engineers save money right? we help them understand where there's performance problems or inefficiencies or problems with the software that they've built that might be improved to increase the overall company efficiency and we help them make money. so measuring customer experience, optimizing the customer experience and the business performance of their digital business >> all right so lou stern used to come on kind of an anagram, new relic. and talk about a site i absolutely love, which is major league baseball. i'm not sure it's still a logo for you.

but mine was down. and i just swore up and down i would never look at it again it was in the middle of a phillies game, and i couldn't believe it and then they got you guys and i think that what happened is literally they knew when the site was down. and they didn't know otherwise are people that naive that you can monitor it yourself? >> well, as you know, every business today is a digital business and everyone's striving to reach more customers, deliver better experiences through all kinds of channels. mlb's a great one. we've got the super bowl coming up this sunday, right? and there are many of the streaming providers who are relying on new relic to ensure that every consumer that wants to watch the super bowl can have a great experience these are customers like mcdonald's and i don't know did you ever eat an egg mcmuffin >> sure. >> you've got to order it on the mcdonald's mobile app, right mcdonald's relies on new relic

to make sure the moeblg app's up all the time so you can get that sausage egg mcmuffin verizon for their 5g network relies on new relic. domino's pizza i'm sure you've ordered a few of those >> you betcha. >> me re li on new really toik make sure the service is always up and ready to earn every dollar >> take domino's their swebs about as sophisticated as anyone i've ever seen. as a matter of fact, the reason we have it other than they changed the taste of the pizza, is it's so clean you know where the delivery person is, you know everything and it seems like it's pretty mista mistakeproof is the fact that every single time i've ordered domino's it comes on time-s new relic part of that equation >> absolutely we're part of that equation we help customers like domino's understand how their infrastructure's performing and supporting that application and understand how customers are engaging with it so every click they can observe, they can see how things are performing and then they can continue to optimize it. you talked about how simple the

experience is. building that kind of simplicity takes actually a lot of great design but also a lot of great data to understand exactly how customers are optimizing the experience >> when the stock dropped there were a couple of tough quarters. you changed the model. but you also bring a feature that sounds interesting. i can try new relic? how does the free tier work? >> let me tell you why new relic today is the most ubiquitously adopted platform on the planet because it's really kind of special what we've done here in july of 2020 we introduced a perpetual free tier for observability. the only vendor to do this and it's a high scale, high efficiency motion that lets engineers fall in love with our software at their own pace no sales conversations no limited trials. no credit card required. and then as we start to use it more and more as they hit the

free tier limits, they can add the credit card, begin paying for it and motion that is optimized around nurturing that value to increase what they're getting out of our product and ultimately lead them to a sales conversation where they can get more discounts with a contract and continue to grow their observability practice >> wow you guys are doing terrifically and i'm thrilled you were always the nicest one in the group and now i think you've got a fabulous business model which i really like in blue chip clients. i want to thank new relic ceo bill staples bill, it was great to have you on the show. >> thank you so much great to be here >> absolutely. "mad money's" back after the break. coming up, cramer takes your calls. and the sky is the limit it's a fast-fire "lightning round. next

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it is time time for the "lightning round" buy buy buy -- play until you hear this sound and then the "lightning round" is over. are you ready, skee-daddy? start with linda in georgia. linda! >> caller: yes from athens, georgia home of the georgia bulldogs >> oh, my -- yeah! athens it's like greece but it's georgia. yeah >> caller: yes and i think half of the eagles are from the university of georgia. >> we've got a great line, defensive line and we've got right in the middle. what's going on? >> caller: okay. i would like to know about moderna. i bought it i think last year at

a high point, and it has done nothing but go down. and it goes a little bit, almost hits 200, maybe 190, and it starts going back. so i am just wondering what to do with it >> well, linda, you are so right. and a lot of people are tired of it it's a very expensive stock. i have faith in mansell. i think he's remarkable. and i think we saw something great from the pandemic but there's much more ahead expect and i think you should buy more. let's go to dave in illinois dave >> caller: dr. cramer, my mad friend how bullish are you on your eagles >> well, it's hard to not be -- i like kelce oh two guys good so what's up, dave >> caller: after a crash and burn on my last "lightning round" stock, i'm trying to redeem myself now with octa. jim, your thoughts >> a lot of these enterprise software companies, this is obviously cybersecurity, are starting to have a couple of days that are good cloud flare was good

i think octa's come down you have no. i don't like the ones that are losing money if he would just pivot then i think we'd find ourselves in a great situation. todd but right now he's got to pivot first. pivot going from loss in high growth to a little less growth and profits. come on, todd mckinnon let's go to colin in michigan. colin. >> caller: hey, boo-yah, jim cramer >> boo-yah >> caller: i'm calling about a company that makes things, does stuff, returns some of that money to shareholders, that's had a pretty good run last year and i'm wondering if i should add to this position or if i should cut my earnings and move on to something else the company is mcorp >> m corp., boy, does that ever make stuff and -- he's got it right. that's my kind of stock. sells at 18 times earnings go to 17 and then buy more but that's exactly what i'm looking for. thank you. let's go to laurie in connecticut. laurie >> caller: hi, jim i'm a charter member of the investing club and -- >> thank you

>> caller: i so appreciate your tremendous energy and dedication >> a lot more to come. >> caller: great i'm wondering what you think about hess >> i like hess okay. if you want to play the majors i would rather see you in chevron with that big buyback doing quite well hess is okay chevron's better we're not done let's go to irene in new york. irene! >> caller: hi, jim i just want to thank you for all your good advice >> oh, thank you, irene. doing my best. doing my best. what's up? >> caller: my stock has a high yield, and it's tax-exempt and it's alliance bernstein. what's your call >> okay. very tough business right now, the brokerage business and so i am not going to say -- no i will this thing's at 13 times earnings, and i think this is going to get better. i said that last night about svb. i will say it about alliance bernstein. i think you possibly have a winner please don't buy it all at once,

though but i'm changing my mind about that stock because of what i said last night about svb. greg in nevada greg >> caller: hey, jim. feeling pretty positive about the eagles super bowl on sunday. >> i have to hope so >> caller: i know. my question is do we feel as positive as we do about semiconductor sem? >> i think it just had a huge run. it feels a lot like the chiefs i think it's peaked already. what can i say it's very chief-like i'm sorry. and that, ladies and gentlemen, is the conclusion of the "lightning round"! coming up, what's there to learn from two bankable ceos about corporate governance iger, benioff. and your investments next thinkorswim® by td ameritrade

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here's five words you don't hear much on wall street all's well that ends well! ♪ hallelujah ♪ i'm talking about the magical moment disney he ceo bob iger came on "squawk on the street" and laid out his fantastic plan to restore growth and profitability. bam! the moment my colleague david faber finished his interview nelson peltz, who initiated a proxy fight with the disney board, called in and said he's

happy, proxy fight over. most of the time these proxy fight turn real contentious. but iger's transformative vision of disney was enough to silence even his most critical opponents. and look, this fight was not much ado about nothing pelts had real grievances. disney had lost its magic. under the old leadership management only seemed to care about streaming. all the other properties were an afterthought the $1.5 billion miss the previous quarter was a benchmark failure, which is why the ceo got ousted but now iger's given us a sweeping reorganization even bringing back a moderate dividend later this year two things pelts wanted to see when he came on "squawk on the street" he was very gracious, thanking iger for making money along with the other shareholders including any charitable trust the proxy fight is over. to me this disney story is capitalism at its finest sure it got a little rough but the dish tasted great. iger can deliver on his plan i think this stock's way too cheap. especially after its late afternoon pirouette. the tempest may be in that

description, salesforce. ceo marc benioff is under fire from five different activist firms. while everything seems tame so far, this one's going to get ugly he's built an amazing company. i think three of the activist firms have worked pretty -- they've worked closely with pr marc, pretty constructive so far. he agreed with starboard to mutt a mutually agreed upon candidate on the board don't know the intentions. the one that may cause the storm would be elliott management, a hard-nosed outfit that i'm sure is unhappy with not only just the one exec. -- i think they're unhappy with the entire board of directors, frankly and the lack of cost discipline at the company still they think there's still way too many people there. they may even want benioff's head seeking a more hands-on success ovr sooner rather than later as we got tonight from paypal with the resignation of dan schulman later this year initially spiked the company's stock, elliott management. of course salesforce has seen its stock move up dramatically

ever since marc outlined a $10 billion buyback, 10 -- i'm in favor of anything that increases the share price. i'm actually pretty shocked none of these activists have opted to declare victory a la nelson peltz given how much the stock's run in the last couple months. this is not some fiasco like disney before iger took over salesforce has gone from 10 billion in sales five years go to 30 billion on its way to 50 billion. hugely profitable. gold standard in the customer relations management industry. ask anyone what went wrong? i think this salesforce stock had the misfortune of trading with the rest of the cohort the cloud force. it peaked in november 2021 then crashed to 126 just like they all crashed. okay did they hire too many people? not if things had stayed strong but yes if there's a slowdown. and yes, there is. did benioff do a -- salesforce is indeed a public company and what shareholders say matters. i don't know how this one's going to turn out i do think marc will listen to his shareholders as he did when he called off his twitter takeover bid. but if i were working at these activist firms i'd be worried

about antagonizing benioff to the point he retires as much as he loves the company i don't think he needs to work for a living and his departure would be i huge loss he's made this company great he's brought in the biggest customers. but all that matters now i guess is what have you done for me lately then again, maybe i've become too nice a guy i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money. i'm jim cramer see you tomorrow of skims, returns to the tank. i really understand direct to consumer, and i can really help you unlock that. honestly, we're like, this deserves to exist in the world. oy-yoy-yoy. are you insane? what?! this deal for us is about chasing the american dream. i need help -- like, i can't sustain this. yadda-yadda-yadda, woof-woof-woof. i don't care. typical guy. [ laughter ] ♪♪ narrator: first in the tank is a business that utilizes food waste in a delicious way.

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