so their crm product is growing faster.n fact, they say that 75% of their growth -- of the growth area is competitive replacements and a good chunk of that is coming from salesforce. so we believe as microsoft increases their drive in the space, as oracle increases what they're doing in the space, as their partners -- because this is a massive partner channel that microsoft has -- >> sorry to interrupt. any chance microsoft makes a bid for salesforce? >> no. it doesn't -- it's not going to be eps accretive. the company has guided next year to 51 -- negative 51 to negative 56 cents gap. so there's no way microsoft's going to buy it because of the issue of how it's going to affect their bottom line. in addition, the multiple is very high. and frankly, marc benioff really believes the story. i don't see that he would sell. >> if we've taken out the microsoft takeout premium in this, could you then set up some kind of a trade where you buy microsoft/oracle and sell crm short? >> i could see that happening. i could see microsoft

crm. software is a service company that practically invented the idea of cloud computing, which remains one of the hottest trends in tech. sales force has built a confidence of cloud platform for the enterprise. it's old-fashioned enterprise scrambling desperately to catch up because they're mobile and they don't have social to go with cloud. i like to think of sales force.com as the king of the cloud, but in this case it's tough to be the king because if you disappointed on one metric. they storm the palace and cut off your head. that's what happened to sales force.com last time when it reported back in november, and the company beat the estimates of every metric except for billing. it wasn't fast enough to satisfy the growling bears. next day the stock lost 10% of its value. learn, at that point we talked to the ceo that night, and he reassured us about the company's long-term strength. did anybody listen? well, lately they have because sales force has been on a tear. rising 25% so far.

>> they won't buy crm. i think the stock is overvalued.with herb on this. >> i was just pointing out what people were saying, because this has been a tricky company. i've certainly raised red flags over it, and mark over at bernstein has been a fairly big bear with the stock on it. >> i hope you're not standing up yelling. i'm sitting down. >> you made that promise. >> i'm very quiet. >> we'll see how long that lasts. >>> let's good et to some of your tweets. grasso want to take this? >> i've been looking at this, a bit per president-elected. i don't know if i jump back in. i'm not confidence that the sell-off is done. >>> is the recent weakness in the dow jones trst suggesting a pu pullback? >> yeah, downthey're. >> you're saying that's the only reason the transports are week? >> that's one, but i think there's not belief in the economy rite now. >> just a reminder, that is a tag on to weiss. that is the most profit a -- if you watch them they felt off. >> nvidia. it's getting set to report fourth quarter earnings. how should you position

as the second largest provider now of crm in the world.oftware or cloud. >> amazing. >> that was a huge accomplishment, and now we're targeting number one, and you know who they are. >> yes, i do. mark, i do greatly appreciate that you gave us that additional data, which you know i felt the heat from by not having, and i really think it was a great quarter. no flies on it. well done, mark benioff, salesforce.com. >> thanks, jim. great to see you. >> great to see you. >> guys, look, i asked for a series of data points because i felt that people weren't able to get their arms around how well the sales force is doing. we now know to get the data points, and it turned out to be much better than expected, and the stock is reacting with alacrity because we have that data. crm. stay with it. stay with cramer. >> coming up, reservation renaissance? open table's footprint continues to grow, but concerns over competition have the bears licking their chops. should you have reservations? or is it time to pull up a chair? cramer is setting the table in

software side, sales force.com, crm is the ticker symbol. its had a heck of a quarter, and has a record order on the books for the current quarter. how can it move higher? >> i have sales force as one of the big tech rebound stoblgs twr 2012, and it's starting to live up to that bill. this company is one of the first cloud trail blazers, and if you look at resources, what we're seeing is more and more large entersurprise deals. >> now the both protential -- i k maybe we're seeing it's overblown, and there's more growth. >> tom: finally. thirst seconds on rack space. this is seen as a pure play in cloud. and the stock price kind of renekts that as the excitement as picked up in several weeks. >> like competitors they focus on the cloud. customer support, and i spoke to the executives there, and they have new product plans for this year, and on the financial side of the company, there's a lot of upside. >> tom: can you or do you own any of these stocks, james if >> no, none whatsoever. >> reporter: you can read the article at the street.com an

at 83 or 84 times forward earnings, do you chase crm? my answer would be no. it will go higher than where it is now. big short interest in the name and they will chase, but at this valuation, this quarter was not good enough for me to justify where the stock is going to trade tomorrow. i'm not saying shorter, but don't chase. >> here brings up valuation and this is exactly what they did because of that valuation. you have to see the growth rates continue. you are starting to have that here, but i would agree that you don't chase this tomorrow. i would trade this. see if the gap holds and you have a point of reference. >> to the options market and a big pop in the after hours session. >> the options market suggest that is will move sharply. a lot of them are skeptical about the valuation. these got extraordinarily expensive, rising about 35 in the last couple of days on the weeklies, the ones that were trading most before the earnings. what people want to consider is that tomorrow now that the numbers are out, the options will get less expensive. that might be

so this unlike crm, sales force.com, the valuations on that one don't make sense. the valuations on this given what they're going to do so actually does make sense. >> hotel strength was cited for the reason they're vying higher. 55% of revenues total bookings is from european hotels which would concern me going forward. >> that's a great point. analysts -- investors had an opportunity to look at expedia's earnings a couple weeks ago. as far as priceline's concerned, they get an amount from overseas. you also have foreign exchange worries. this is one of the reasons analysts thought they were going to beat in q4 but cautious or guide down for q 1. that didn't happen. that's why you see the stock up here. this stock has 6.5% short interest. trading 20 times next. this is a cheap stock. this is not netflix here. don't let the handle fool you. at the end of the day you're going to have shorts climbing all over to cover it. but i don't think new longs should be initiating here. >> let's bring in aaron kessler. he's got a $685 price target on priceline which he just rac

take like a sales force for crm, the only thing you have to know about the chart is the moving averagehen the rest of the sector is in a much stronger technical spot here. selling on rallies. a nice move back from 100 to 120. >> but you don't think overall the technology is in a bubble phase at this point. >> certainly doesn't seem that way. again, ten years in technical purgatory here. ten years to repair. a lot of the stocks are just beginning to break out. microsofts of the world, googles of the world, healthy looking chart. >> chris, good to see you as always. thank you for joining us on "talking numbers." >> 30 minutes until the closing bell sounds. the market taking a breather this week. market experts tell us whether they expect the market to move higher or lower from here. and what will be the catalysts in the coming week. another big slate of earnings after the bell tonight. we have results from linkedin, expedia, ak tivision and lionsgate. you're watching the "closing bell." >>> and tomorrow, he's won praise for italy's ket fighting efforts. prime minister mario monte explain

>> caller: picking up crm before the report. >> you know what? i think you have to wait. why do i say that? i think it will be a good quarter. thought the last quarter would be a good quarter. people bought the stock got killed in it. let's see what they have to say. i think he's terrific. i would buy. if i'm a betting man, go deep in the money. i'm chastised. i'm chastened. i have to see the number. let's go to jim in south carolina. jim. >> caller: hi, mr. cramer. a big alabama boo-yah to you, sir. >> roll tide, sir. what's up? >> caller: sell or hold, please, netflix and frontier if can you tell me? >> you know what, comcast unveiled something that to me sounds like the definitive netflix killer. today it is going to be the lead story in "the wall street journal" because i work for the company i want you to read that story and not take it from me. but to me it reads bad for netflix. and that, ladies and gentlemen, is the conclusion of the lightning round. >>> incredible rally we had this year, high-quality problem. it has become really hard to find high-quality stocks

>> three letters, crm. they're back, it's big. right here at "mad money". i'm jim cramer. see you tomorrow. zeerchlg has the oil spike turned barack obama into an energy policy republican? good evening. i'm larry kudlow. this is "the kudlow report." sizzle story number one tonight, and it's a fwood one. have high energy prices turned mr. obama into a republican? now, as prices climb past $108, president obama fought back today against his critics. here he is mocking republicans on drill, drill, drill. take a listen to this cut from the president today. >> they're already dusting off their three-point claim for $2 gas. i'll save you the suspense. step one is to drill and step two is to drill, and then step three is to keep drilling. >> all right. very clever. very cute. wait a minute. i read the speech carefully, and the very next line tells me that oil spikes last year and now have actually taken the president into republican territory. that's right. you heard me. listen to this cut. >> in we're going to avoid being at the mercy of these world events, we've fwot to have a

and, finally, today a lot of people talking about crm salesforce.com reports after the close. i think what you want to watch here is you want to watch the margins because they've been getting some big orders at the end of the quarter. but as mark from bernstein's been pointing out he knows those have been done at big discounts. >> i would imagine look at the asp, average selling price, see if that's coming down. >> you might see interesting dynamics. might see backlog, deferred revenues, how much are they making on those sales? >> good point. your etf point was a nice segue. >> just for you. >> well-done, sir. many of you were outraged yesterday after we showed how we chose single stocks over etfs and how the single stocks just surged and how you might be costing yourself returns. you said you're not being fair. got to show the worst. so, guess what? we will. show you the worst performers. and how bad is america's tax code crushing our competitiveness? a new survey has scary stats. that is coming up. "for starters, it didn't cost me anything." "and i got a one-hundred dollar c

you look at stocks like sales for crm which gives a great indication where the u.s.arket is in accordance to sales and growing entrepreneurial business and, you know, it crushed earnings for the fourth time in the last year. so what we feel on the floor is if we can hold that 1350 level we're set to have a really good second and third quarter. as long as we can hold that technical level of 1350 right behind me. >> well, chris, it took a long time to get to that 1350 level. you know, if you move an inch a day you'll eventually get to a mile. we've seen a lot of range bound trading. how long will this last? yesterday up less than a tenth of a percent. yes, it's in the green but you can't really make a whole lot of money on that. >> you can't. and, really, what individuals are worrying about this constant uptick is the volatility is so low, here in chicago with the vix is right about at 17. and everyone, you know, is sort of waiting for the next shoe to fall. but all the earnings continue to be so good, the iran conflict has sort of taken hold and what i feel as a curre

crm did have a good quarter. i was wondering about guidance. guidance seemed unclear.ue was ahead of estimates. in terms of the eps number the range they gave, the top end of the range was -- >> i mean, i think they want to -- i think the range -- i don't want to say it's meaningless. the deferred revenue is really the way i calculate earnings per share. if their deferred revenue is as big as it is -- >> let's talk shoes. i know you love to shop. you're a big retail fan. crocs and decker's. >> disappointed by decker's. some is weather. some a higher price point. i say ugg to uggs. >> it was warmer weather. nobody wants to buy sheep skin booties. it's 50 degrees outside. >> maybe uggs is no longer in. it's not exclusive. it's everywhere. speaking of everywhere, that's what happened to crocs a few years ago. crocs also disappointing. morgan stanley has a really interesting piece about how under armour is taking share in the footwear business away from nike. missing in that piece was an analysis i like to do. under armour is a technology company. they have invented cotton