awesome hair products. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. ?? hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to teach and educate you. so call me at 1-800-743-cnbc or tweet me @jimcramer. all this week i'm coming to you from cnbc 1 market in san francisco for our invest in america series, defining the future, where we're taking a closer look at some of the biggest names in tech and how they're changing the way we

it's an amazing thing. you know what? it's also a beautiful thing when the old economy and the new economy converge. that's what happened today with the averages with the dow jones rallying 113 points or 0.62%,, s&p advancing 0.43%, nasdaq increasing 0.5%. for much of 2016, that's not been the pattern. either the industrials, financials, and oils rally, distinctly the old economy, or you had the tech stocks, the household name companies that dominated our cell phones and soon, if not now, our minds go higher. but not today. today they coexisted. what makes this delectably bullish combination come about? two different stimuli. for the old economy, it's the price of oil. for the new economy, it's the price of innovation. let's start with the former. today we got oil inventories, and once again they showed a downturn. remarkable given the glut we know does exist. now, it's entirely possible that one day we'll find out that these 10:30 a.m. numbers we so

of oil. but all the market cares about right now is the thermometer is flashing red hot with oil up a dollar, closing in on $50. it was almost $40 a couple weeks ago. traders can't resist equating that rally in oil with a robust economy, so they extrapolate. what do they extrapolate into? how about caterpillar, up once again as people presume its business has got to be better, right? now, i do think that the recent asian numbers which showed long ago at last justifies some rally that's taking cat to a new high for the year. up to $89.87. that's an amazing $1.91 gain or 2% on top of a lot of other points, or they buy the stock of boeing, which increased $2.41 or 1.82%. that's a solid move given there's been negative publicity for its accounting for the dreamliner flight. or they buy the rails.

increasing $1.87 or 1.93%. now, i need you to understand this. you have to get that in each case of the stocks i just mentioned, these rallies are what we call animal-spirited rallies. it's the animal spirits of the market talking. that's because do you know that all three, there is no new news on any of them. you know what, there's hardly any news on any of the dozens of other big industrial stocks that rallied today. in other words, the move can't we haven't even had any reports. the season hasn't started. it's being justified by people willing to pay more because somehow, based on oil, they think things are getting better. what else happens when things are getting better? well, interest rates go higher, demand for money. what happens when that happens? the banks profit from it. so of course the stocks of the banks had an excellent day. when the financials do well -- and here i'm even talking about -- i mean get this. i mean stop trades.

then it's going to be a huge rosy hue for the stock market. it's what happens when they go up because it creates a terrific backdrop. we know the banks have continually disappointed in the end, so please don't get too excited. i know i'm not. it's the quarter, the reports right around the corner for the group, and i do not expect good things. but every dog has its day. hey, today was the bank's dog day. needless to say the oils went up, and the oil stocks levels we haven't seen since mid-august when oil last looked like it was breaking out. the oils, like the banks, they tantalize. when i say tantalize, because they tend to fail, and they tend to fail because oil fails at $50. why is that? pretty simple. do you know at $50, so many u.s. producers begin to make a lot of money so that the spigot that they can turn off and turn on gets switched on. oil flows big in the country and prices fall again.

i bet this time is no different. but how about that second economy? the new one. the one we came out to the west to cover. now, here the themes are totally apart from the old economy. they have nothing to do with oil or interest rates or the fed. they have much more to do with data, reams and reams, trillions of pieces of data, and mining that data and making sense of that data whether it comes from the cloud or social media or mobile or iot. could they just call it internet of things? ha machine learning, to find out what the data is saying. it's about using artificial intelligence to intuit what you should know about what the customer wants because these things aren't smart enough anymore. we got to use the machines to figure it out, or you want to put it another way? maybe one way that's more to the point. it's about trying to keep up with or beating a giant, a colossus that happens to be 807 miles to the north of where i'm

that's what i heard all day today. amazon, you see, is the one that seems to stay one step other head of every company, trying to sell in the multi-trillion dollar retail market, the largest tam out there. that's because amazon has the best artificial intelligence in the world. hey, if you like this, then you'll like that. if you like jim cramer and "squawk on the street," maybe you'll like him for "mad money." that's like amazon, okay? how do you rival it? salesforce.com has made a strong case at this year's 171,000 strong dreamforce, that you can have the best mining and best artificial intellegince if you put your info on the salesforce platform and hook up with some of their allies. how much do these companies prize and want more data? how hungry are they to process what you know and how you know it and what you want and what you might want and when? do you know that's the actual real driver behind all of this talk that can't seem to be killed. i'm talking about the talk that mark benioff, the ceo and

going to buy twitter, the last big fire hose of data available that isn't being interpreted or used correctly because twitter management isn't up to the task. how many times did i hear that today from different people? so will salesforce buy twitter? i'm a tease but not that much of a tease. mark rope-a-doped me when i asked over and over about whether he was going to do it, saying, hey, he has to take a look at it. and i think the company's even pondering of it, well, we're talking about a company spending $20 billion to buy another. so if he's looking at it, admitting to pondering has driven salesforce stock down 5.8% today, or $4.21, as many owners of salesforce, large mutual funds, mostly growth stock funds, voiced displeasure at either the high asking price or the declining asset that salesforce might be purchasing. how do you express displeasure in the stock market? you sell, sell, sell. call it a trial balloon that the market shot down.

occur if, say, a $29 bid were launched. much more on this story later in the show. no matter, these are long-term trends, and today the companies that benefit from the plumbing of the oceans of data, chief among them amazon hitting another all-time high today, up $10 to breach the $400 billion mark, well, they clearly shine. bottom line, today the two economies coalesced and the market put on a darn good show. don't get too confident. soon we're going to get actual and companies in these groups, and when we do, i wouldn't be surprised if some of the big rally stocks today are not backed up by the facts of the company's results. let's take questions. amy in maryland, amy. >> caller: i own 500 pre-split shares of rr donnelley. could you please explain the three new parts, and should i hold or sell? >> well, the three new parts, this is tom quinlan's goal of

including the old line publishing business, some data businesses. let's put it this way. i have opined on this many times. i think tom's got $20 worth of business tied up within that stock, and you got to hold on and let the pieces make the money for you. i think they will. all right. listen, the old and new economy converged today. it was a beautiful thing. but be careful. i don't know if it can last. coming up on "mad money" tonight, whether it's 500 million accounts at yahoo! or the legitimacy of the entire american electorate, high-profile hacks have made cybersecurity priority number one for business. tonight i talk to one of the industry leaders. plus constellation brands is buying another bottle in your liquor cabinet for a cool $170 million. find out more about the booze big shot in my exclusive with the ceo of a stock that hit its all-time high today. and is salesforce ceo mark benioff preparing this bid, or is it chimerical for twitter? we'll ask him and learn more

people to dreamforce just ahead on our special invest in america, defining the future. 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. ? ? ? ? ? ?

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some companies, well they just don't know when to quit. take a look at longtime cramer fave constellation brands, the terrific alcohol company that's the world leading purveyor of largest brewer in the united states. constellation stock is on fire because they have the u.s. rights to corona, modelo and pacifico, some of those popular beers, by the way, at bar san miguel, my mexican restaurant in brooklyn, and they also make my favorite tequila. plus they are killing it in wine and craft beer. just this morning they reported yet another fabulous quarter, delivering a 12 cent earnings beat off a $1.65 basis, taking the stock to an all time high. higher than expected sales, up 17% year-over-year. this is about the fastest

there by making shrewd acquisitions and then growing them and taking share in every category they touch. today they announced a foray into the high-end whiskey business with the $160 million purchase of high west distillery. will they work the same magic here that they worked with mexican brews ballast point, the craft beer, meiomi and prisoner wines, and casa noble tequila? let's check in with rob sands. he's the president and ceo of constellation brands. mr. sands, congratulations on a monster beat in this morning's earnings report. >> thanks, jim. appreciate it. >> rob, i got to ask you, you did it again. you bought a company, this time for $160 million, that a lot of people were questioning what are they going to do with whiskey? but i have seen what you've done in terms of igniting a brand. can whiskey be as big as what you've done for prisoner and meiomi? >> yeah, i think that it can be. look, high west is a fantastic brand.

rye, one of the hottest categories in the business today. this is one of the hottest brands in the craft, bourbon, and rye whiskey category, and so if you take a look at prisoner, you know, growing 35% in iri. you take a look at meiomi growing 60% in iri. you take a look at casa noble, 40%. we can use our sales and marketing expertise and our organizations and our distributor network to, you know, really jump start a brand like high west, which already has unbelievable momentum. >> all right. rob, let's talk about when you speak of momentum, july 4th is a big beer holiday. and from what you said today, you won july 4th. how can mexican beers win july 4th in america? >> well, i guess that's america today. but, look, we've basically won the whole summer, right?

summer period and promotional activity. this is the most important period for us. you know, we have generated 60% of the entire sales growth in the entire beer industry over that period. so, you know, we're really the leader in growth. it was a terrific summer for us. we gained share totally across the board. you know, our fantastic craft beer, bell as point, very, very strong results during the period. corona, modelo especial, pacifico, the new 24-ounce can is the number one growth sku and iri of any new beer sku introduced during the period. so just terrific momentum behind our brands. >> let's talk about wine.

weekend, and i saw what i thought was a very, let's say, mid-range price, $80 meiomi prisoner. you figure out the price point, and you exploit it. that wine, below opus, above some of your other up brands. how do you price these things, and how do you know what sells in america? >> well, you know, obviously we know sort of where to fish as it relates to price points. in wine, ibe premiumization story with the consumer moving up towards more expensive products. so you take a meiomi at about $20 a bottle that's really right in the sweet spot of what's really hot right now, and you take a prisoner at $40 a bottle. you know, 91 points in the wine spectator this year, which means that it's extremely highly rated

you know, how do we price it? it really is a function of the cost of the product. it's about, you know, the type of grapes that go into it. and on these higher-priced products like meiomi and prisoner, which are produced out of some of the most expensive grapes, they have a cost structure, and they're of a quality that warrants the price. so it really is about, you know, the quality and the cost and the delivery of price of the product is. >> well, rob, you got it right again. congratulations on an amazing quarter and the stock at an all-time high. rob sands, president and ceo of constellation brands. good to see you, sir. thank you for coming on. >> thanks a lot, jim. yep. >> "mad money" is back after the break. >> announcer: coming up, is the ceo of salesforce planning a big acquisition? >> what my shareholders want, i'm confident of this, is they want me to look at every single

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>> announcer: from humble beginnings in a san francisco apartment to today, salesforce is venturing into the tech of tomorrow. but will big deals and bigger rumors help it claim the crown in a consumer economy, or will the stock fall short? >> could there be a more momentous time to be in san francisco? we came out here for salesforce's dreamforce conference, the annual pilgrimage for all things related to cloud computing. this comes right after the company's $700 million acquisition of krux, a marketing data startup at the same moment when rumors are swirling that salesforce might be in the

hounding the company's stock. as i said before, i think twitter has the potential to become a valuable asset under a company like salesforce. that's not how it's run at the moment, but if you look at twitter as a treasure trove of data, you can see how a potential deal might make sense at the right price, right price only. either way, though, a high-quality growth stock right now is getting slammed, and i think it's creating a buying opportunity. so earlier today i got a chance to sit down with mark benioff, chairman, and ceo of salesforce, who also of course happens to be the ring master for the dreamforce conference. take a look. mark, why do 171,000 people congregate each year -- this year the most ever -- for a conference? >> jim, this is our family reunion. it's our customers, our partners, are employees. we're all getting together to welcome each other home. this is a very important day in salesforce. it's when everybody is able to

their path is going forward, and celebrate. that's what dreamforce is. oh, and give back. we're giving back in scale. >> one thing that i've learned from this trip more than ever is the people who can use your platform don't necessarily need to go to stanford comp sign. >> that is 100% true. you know there's only 1,500 programmers in the world and i think you touched on sales force's secret sauce. we have this amazing platform. every year we add something new in that platform, to give our customers the power of the best first it was the cloud. then it was social. then it was mobility, you know. then it was iot. this year we're adding artificial intelligence. so all of these incredible customers are going to have all the pours of machine intelligence, machine learning and deep learning right inside the sales force platform. >> let me ask you. this is the event, okay? and yet somehow it's gotten caught up with something that

tires, twitter. you're trying to figure out whether to pay for it. and let's just end it and just talk about einstein. let's forget about buying somebody else. >> well, jim, you know the reality is that salesforce is a super innovative company. forbes has said one of the most innovative six years in a row, even innovator of the decade. innovation comes both organically and inorganically. we look at a lot of deals. in fact, we look at most every deal, but we do almost no deals. >> a $20 billion deal, would you ever say, our shareholders do not want me to go borrow a lot of money even if i have partners? they don't want it, and i'm beholden. >> what my shareholders want is they want me to look at every single company, pick out the best ones and do the ones in their interest, and that's what we do. that's our strategy. you can see how well that's served our company over time. and if i was to address any specific deal at any specific time, it sets a precedent. then all of a sudden, i have to

doing, and as you know like just this year, we've done some amazing deals with demandware and with quip and this amazing deal this week, krux. and the reality is we're going to continue to do amazing deals, but we do deals that are in the interest of our customers and our shareholders. >> but perhaps people don't understand what they need as steve jobs said. i look at twitter as this. bobby kennedy once said there are those that look at things the way they are and ask why, meaning how come twitter is so bad. and other people say i dream things that never were and ask why not, how i can fix twitter. come on, if we look at twitter right now, it is so bad. but if we look at it the way bobby kennedy would look at it, it's huge. >> you know it's a great product. it's an exciting product. but obviously the business has a lot of challenges, very severe challenges. >> it could take the stock down huge if guys would just dump your stock because it's going to have a disaster quarter. 18, 19, maybe it's a price issue.

i don't know. but here's the deal. the reality is, look, all i can do is one thing, which is wish my good friend jack dorsey well. that's the most -- he is the ceo of that company. >> right. >> it's his job to make that a great company. it's my job to make salesforce a great company. >> can we wish sacha will because this leaked in. it seems like a tussle. he's a guy you told me i ought to get to know and now you're trying to get him to -- i don't know, linkedin, you're not crazy let's change that right now. say, listen, i'm sorry. >> sacha, number one, is a good friend of mine. >> right. >> number two, you know, in our industry, we have a an old phrase which is the enemy of my enemy is my friend. but i guess in this case, the enemy of my enemy is my frenemy. >> fair enough. >> the reality is -- >> you're cool with it. >> since microsoft has kind of announced linkedin, i'm cool with sacha, for sure, but some

very aggressive statements about what they're going to be doing with this linkedin data, jim. it's amazing what they've said. they're doing things that are absolutely anti-competitive, and that's what i wrote on twitter. you read that. we did an op-ed on that. we brought that to the attention of the regulators because, look, if they're going to buy linkedin, it's a great company. we looked at it too. we would have loved to have linkedin. >> at a price. >> it had great deferred revenues, so it made it very exciting. when you buy a company and if you are the largest and most important software company in the world, which microsoft is, or as our attorney david boies says, he says microsoft is different than other companies because of their size and scale, shape, and position of power and monopolistic characteristics that you have to look at if they're going to buy a company, what are they going to do with the data? and data is the new currency, jim. >> right. >> so they need to be held accountable. some of the things they said they're going to do with that data, i field might have been a little bit on the wrong side of

stated that on twitter, and you say it here. if it weren't for the twitter discussion, we would have been sitting here talking about einstein, artificial intelligence, machine learning and whether the machines are so much smarter than we are that we can't intuit the way they can. >> i think the most important thing with artificial intelligence is what we said first, which is that all these amazing customers, which represent hundreds of thousands of companies all over the world who use salesforce, need artificial intelligence to make their sales people better, service people better, marketing build more intelligence around their products. but they can't get there because of a block, and that is the people don't exist. but now they can because the salesforce platform has that. >> but they exist at amazon. your customers need -- people need to be able to compete with amazon. are you enabling them to be able to do that? >> absolutely. our customers can compete with amazon. they can also have incredible experiences by building

they're going to be able to know, what's this great territory that i'm not in that i should be in? or why is this salesperson not selling more? or the salesperson may be guided and say, hey, you're not going to close that deal unless you e-mail the cfo today. and that's going to make for more productivity, higher revenue, higher market share for our customers because we are only successful if our customers are successful. that is what so exciting about how salesforce is architected. >> i went to the quip cafe. had to wait in l what is quip? >> well, quip is really the next generation in productivity. i mean we've all grown up on spreadsheets and word processors and we all know what that is. but when was the last time that you got a spreadsheet or word processor in an e-mail? that's a productivity drain because as that travels around the company, you lose all the institutional memory. and customers are kind of looking at, okay, well, hey, i got microsoft office 365 and

management, especially around word processors and spreadsheets. can you help me? and we have deeply integrated quip into the salesforce platform again with our authentication and powering our customers and it is super exciting. i mean i've never been honestly -- i mean i'm really excited about demand ware, a lot of our acquisitions. i have never been so excited about an acquisition such as quip, and i'm going to tell you why. i just was on a three-week tour around the country. i hit the eight major cities in i met with hundreds of customers. i looked them one-on-one, and they reviewed our whole product catalog, and for some reason when we demonstrated quip to them, they jumped out of their seats. they just go right to the app store, right to the google play store. they can download quip. they got going in the meeting and they saw the difference, and they started to get their companies on quip. it's incredible what's happening with quip. >> last question. it always seems like there's something else other than salesforce going on. last time i saw you, we were

going to buy you, and that was all anyone wanted to talk about. why is the narrative not just artificial intelligence, cloud, and making customers be able to connect with you? >> i have two major narratives, and one is this is the age of the customer. you can see the world has changed dramatically. social, mobile, cloud, that was in your book. >> yes. >> iot wasn't in your book but next book. >> next book. >> and now ai, next book. it will be in the b i don't think it's in the current book. >> no, it's not, but it will be. >> these will be the five characteristics. what does that do for customers? more revenue, more competitiveness, for market share, more efficiency, more productivity. that's what everybody needs today. the second thing we do is the age of equality. we believe strongly in philanthropy, making the world better, fighting for people's rights. you know that we have a lot of lgbtq employees. they want to make sure we're looking out for them. we have a lot of women

and we want to make sure we have pay equity, which means women are paid the same as many. we have a chief equality officer reviewing all of our quality programs. and the last thing we do is everyone has to adopt a public school. >> absolutely. >> so important in today's world. >> let's leave it at that because these are the things i know you care about because just doing great for your customers. >> we want to build a great company that's doing great things. >> mark benioff, chairman and ceo of salesforce, thank you. >>at >> announcer: coming up, the social media storm continues. >> twitter would be complementary to many of these companies. >> yes. >> announcer: early investor and venture capitalist chris sacca reveals his thoughts. veryday itm to become dangerous. always keep laundry pacs away from children.

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even though we all know that cybersecurity has become a major issue and a huge business tough year for the cybersecurity stocks. the whole group got slammed at the beginning of the year coming off another big meeting last december. however, in the last few months, the whole cybersecurity stocks group has come roaring back, in part because growth is suddenly back in style on the wall street fashion show. lately, it seems like nothing can stop them. take palo alto networks, one of the leading cybersecurity players that pioneered the next generation firewall. for years the stock was beloved. but then from last december through this past july, it got hammered. whole groups fell out of favor.

although i don't think anything ever happened to the stock other than the company did well. but shares are up more than 35% for the last few months. even when the company gave cautious guidance for the current quarter, it only took a few days for the stock to bounce back and start roaring higher again. the revelation about the big yahoo hack last month has given palo alto even more momentum. can this stock continue its recent rally especially since it's still down 8% for the year, or do we need to be more cautious after such a big move? let's take a closer look with mark mclaughlin, the chairman and ceo of palo alto networks. mr. mclaughlin, welcome back to "mad money." what is a great disconnect for our viewers at home, it's so clear not only are there bad guy individuals, there's ransomware. there's countries that are hacking. this problem is transcending any macrogrowth, and yet somehow we got caught up in the idea that maybe cybersecurity is ho hum and we don't need it anymore, it doesn't matter. it couldn't be more wrong, though, that conventional view. >> i think that's right. i think cyber is going to be an

things may ebb and flow about the number of attacks or nation states attacking or not right now. the reality is the number of attacks right now is growing dramatically across the board and nobody is going to bring them down. so the trick is how do you stop successful attacks, not the attacks themselves? >> well, i think that one of the things was a really good article in "the wall street journal" about people yawning at the yahoo! hack. we talked about the idea that if we knew how little companies were spending on cybersecurity, maybe that would change our ew you told me many years ago the companies still weren't spending the way they should. has anything changed? >> i think the recognition of this has grown dramatically. i think people are willing to spend. spending has gone up. i think it's high now. it's going to continue to be high. that's my guess over time. it's not so much more about how much people are spending. it's how they're spending it. >> okay. >> there's a big difference between those two things. >> you are a platform company. there was a time when people

that's not working anymore, is it. >> i think that's very clear. so the 25 years of security has been there's been a product to do one particular thing for one particular problem, right? people have no choice but to buy all of them, and then you put them all together. you've got a lot of complexity and you need a lot of people to try to get them to work together. so platforms like we have today have just gone away from that approach and said let's build a way to work together with gives high degrees of prevention. a company we like, like we like yours, and we said they're partners of yours, which mean they sit on your platform when we hire you? >> there's a number of things that have to happen in security from an outcome perspective, maybe a dozen. the companies who are doing very well as platforms today have taken a non-legacy approach, and they're delivering on those out items. we deliver on a couple of them. gary and proof point deliver on a couple. so what we're doing is working

are next generation companies like that to do integration of the technologies that the customers would otherwise have to do if they bought them. so we do it in advance so that these things are starting to work seamlessly together to give a real sense of fabric of how this should work. >> this is all well and good, but on the conference call, people were kind of amazed that you went from 24% growth down to 12% and 13% projection. you're a cautious guy. then the stock came back. is that a reflection fortune 100 clients and there's not enough business and new clients to go around? >> for clarity purposes, that number you just said is product revenue. >> okay. >> so total -- >> that's important. >> total revenue growth, what we said is we would be in high growth, 30-plus percent at scale or billions of dollars there at scale for years to come. so what people are focused on the product side was the shift that's going on in how you deliver these platforms.

has moved into services. 65% of our billings last year was in services. >> yet they still have to pay up front, right? >> that's why cash flow is so high. >> right. the cash flow is humongous, up 72%. i'm glad you cleared that one point up. election coming up. do we have to worry about being hacked? i felt after the yahoo! hack that everybody is vulnerable. can someone rig an election? >> anything is possible. i think we're seeing the concern there, rightfully so -- >> it is a concern. >> yeah. any computer system is susceptible tok. it doesn't matter if it's used for elections or electric grids, so everything is susceptible to attack. the question is what are you doing about stopping it from happening in the first place, and if it were to happen, how could you mitigate the damage fast enough? >> you've taught me a great deal and one thing i know is unfortunately the business is stronger than the world's economy. i'm glad you clarified. i think people got it wrong on the conference call. we got it straight here.

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it is time for west coast lightning round edition of "mad money." you'll hear that sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." let's start with derek in washington. derek. >> caller: hey, jim. how are you doing? >> i am doing well. how about you, derek?

they've been down some since the merger. q2 loss. i wanted to see what your thoughts were of buying in on that? >> i got to tell you, we've got to have them back on because when they did that, we had them on. the stock has done nothing. let's hold their feet to the fire. bring back diebold. the stock does seem cheap, but that's not enough for you or me.. sue in california, sue. >> caller: hi, jim. do i hold or sell glog? >> bel i talking to rusty braziel from rbn. i got to tell you, i am feeling more and more bullish about that liquefied natural gas market because of how much we have versus how much they need overseas. i think that rusty is right. steve in michigan, steve. >> caller: hey, jim. my question is on mgm international. >> man, mgm is one of my absolute favorites. i've got to tell you i think that jim murren know hows to run a casino. it's tough because adelson is good.

but mgm is cheap, cheap, cheap. richard in new york, richard. >> caller: happy new year, booyah to you, jim. >> done your way, my friend. how can i help? >> caller: honeywell just spun off asix. what do i do with asix? >> i think that you can hold asix but i really like honeywell. i think that i do feel badly that we are going to see mr. cody retire. but i bet you he's got a good person coming in after. and that, ladies and gentlemen, is the conclusion of the lightning round! >> announcer: the lightning round is sponsored by td ameritrade. omega-3s... but did you know your eyes, your brain, and your joints really love them too? introducing megared advanced 4in1... just one softgel delivers the omega-3 power of two regular fish oil pills...

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strong is beautiful. whenever i come out here to san francisco, i try to put my valley and few people have a better read on innovation in the tech industry than chris sacca, the venture capitalist behind lower case capital, which owns a portfolio of wireless technology startups. here's a guy who got in the ground floor of twitter, instagram, kickstarter. now, yesterday i got a chance to speak with chris sacca and get his take on what's happening in the tech world. check it out. chris, i follow you on twitter. i'm starting to think that even though you've made these

that worked out, you seem more interested in the smaller ones that are in "shark tank." >> "shark tank" brings me back to what made be passionate in the first place. as the dollars got bigger, there's a lot of politics, a lot of back-stabbing, blood all over the walls. that's not what got me into investing in the first place. >> the people on the show are every bit as real as travis and uber? >> there's no doubt about it. we don't know anything about those companies when they come in. nobody tells us what to say or which deals to do. if you see a shark fight break out, that's real. they just roll the tape and let it happen. and so what you're seeing is actual hustle. these are people who beat out tens of thousands of other -- i think last year they had 40,000 applications to be on that show, to get up there and get a few minutes in front of the panel and they got to make the most of it. >> i wanted to ask you, you're seeing this real would-be entrepreneurs or entrepreneurs looking for money. we've got this weird dichotomy

>> alleged billionaire. >> we'll go into that in a second. but there aren't a lot of business people who are for the guy. and yet he has presented himself as the uber businessman. >> this is what's funny, and please don't associate donald trump's name with uber, okay? >> you're right. that's kind of a prefix. >> as much as people talk about the country being as divided as it's ever been, what we don't talk about is that the business community has never been so unified behind one candidate. you can't find anyone from out and support this guy. they are desperate for surrogates to get behind trump, and they can't find anyone who has actually had genuine success and willing to stand behind him. that's because he's all smoke and mirrors. we know he doesn't have all the money he claims he has. we know the money he did get, he didn't get through any means he'd be proud to tell your kids and grandkids. he's probably got it stashed offshore. he doesn't give it away. he only gives away money he takes from other people. he preys upon the less fortunate. he's racist. he's xenophobic. he's sexist.

>> i'm not going to represent him being the strawman to argue with, but i think it's important that you are a very successful venture capitalist, and this is your view on him. i'm not here to say he's none of those because i can't do that. i think that your opinion matters. >> even if i came at it from the greed case, so for me as an investor, investing in a tech and consumer sectors, i really want to see stable capital markets. i want to see low interest rates. i want to see talent be able to come to this country and build their companies here. i want to see availability of capital to go ahead and build up larger investment bases in our companies. i want an ipo market that's open. i want a limited regulatory environment. i want there to be no censorship on the internet. i want broadband to grow, more mobile devices available. i want stem education to go ahead and fund the next generation of engineers. he won't do a single one of those things. >> well, we don't know. maybe he gets an advisor who says he should. >> well, he hires the best

and i haven't seen any of them show up yet. >> fair enough. i want to talk about what you were saying, which is you're painting a picture of meritocracy, and our country is really maybe the only meritocracy left. is it still happening? are many of those forces that you just mentioned in play? >> yeah, i mean there's still a much higher hurdle to clear if you're a woman or a person of color, if you come from a poor neighborhood and you don't have access to computers or even a good grocery store right now. but we are a beacon for social and economic mobility. our chief export used to be, you know, either weapons or entertainment depending on how you looked at it. >> we were soda. we were movies. remember when they used to make fun of us? what the heck happened? >> i think the chief export is the american dream of entrepreneurship now. >> what changed, though? immigrants? >> absolutely. if you look at who founded companies around the silicon valley, if you look at who is behind what started with intel but all the way up through google, you're just saying this is the place you want to build. this is the place that parents came to create a better

meritocratic system. there are some obstacles, but in spite of all this mess, i'm an incredibly proud american. >> i think that's really important because i think that we're way too cynical, and you're not cynical. you're a tough guy, but you're not cynical. >> in our business, you have to see a path to the light at the end of the day. but what we see obstacles are as work. we t i do think we have a justice problem right now. i think there's been an imbalance in how people arrested, prosecuted, treated. i think video cameras are servicing that now, but that doesn't mean we should light the whole country on fire and walk away. we need to roll up our sleeves and get involved and fix that system. >> you're a big fixture in social media. i'm not sure how it fits in in the concepts of the enlightenment that you're talking about. i hear people who are emotionally trapped by a stock,

twitter, and you've got some of those same characteristics as some of our colors. >> i got a lot of trauma, a lot of scar tissue. it's one thing to be a stock trader, and i did that for years. >> right. >> you know, abused margin limits and found myself on the wrong end of that trade. >> i'm glad you pointed that out because that's how you learn from your mistakes. >> oh, god, yeah. millions of dollars and years of indentured servitude to learn from that mistake. but as a venture capitalist, you do need to get emotionally wedded to these companies because you are it being a marriage or whatever, but it's what you talk about at the dinner table because it consumes so much of your passion. so, you know, i don't think most really good vc and early stage investors can be objective about their companies sometimes. we don't plan for the down side failure. we don't hedge when we invest in a company. we only plan for world domination. anybody who is shorting it, you know, we don't look at binary outcomes. it's just -- >> got it. >> yeah.

twitter as it is versus what it could be because you talk about. >> underachiever. >> i just think if i were to be say mark benioff, i would say, listen, i've got to figure out behavior. there are not many -- >> you know with the beard and the hair, you don't look unlike mark benioff. you could get a little more on the back. anyway -- >> i'm not as cool. why is benioff so cool? how can he be cool? >> he's got u2 playing his event down the street. >> that is one tough ticket. facebook, google, amazon, i don't want to say that's binary. they can all win, right? >> uh-huh. look, twitter would be complementary to many of those companies. there's no doubt about it. look, you know, it has a unique set of data that nobody else has in the world, and it has it faster than anybody else in the world. >> yes. >> their problem is not the input. their problem is making it useful and easy and accessible and fun for all their users. so the good stuff is in there.

which guy? >> i don't know who, but i can say why google finally has -- i think google has filtered a bit from thinking about it as not scientific and computer science enough to, wow, that's the world's best data. if we don't have that, our search results won't be as relevant anymore. i can see facebook looking at it and saying, we've tried to copy it over and over again, but we need it defensively. sacha over at microsoft was the guy who did the first revenue deal with us at twitter. he understands it well too. so i don't know about apple's really been good at social and community. but benioff loves it. it might be too expensive for him. i don't know. >> we don't know. we actually don't. that's chris sacca, founder and chairman, lower case capital, shark tank regular, and just a fun guy to talk to. >> right on. i want you to stay this bright blue forever... that's why you will stay in this drawer... forever.

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this place is exciting. i'm so thrilled i am out here. tomorrow morning, some of the

i like to say there's always a bull market somewhere. millions of americans are bracing for potential devastation at this very moment as hurricane matthew slams the bahamas and barrels twarld the united states. good morning. i'm ayman mohyeldin. >> i'm frances rivera. at this is rapidly intenifying as it nears the atlantic coast. a state of emergency is in effect from florida to the carolinas where the impacts of the storm will be felt as early as tonight. forecasters now are projecting an historic level of damage to the state of florida as this monitor storm nears category 4 and potentially category 5 level strengths. president obama issued this