Eeked out a two basis point gain but it could have been worse and it should have been worse and was at one point in the day very ugly but the nasdaq rallied in the close taking the market with it. I kept from the very beginning, from the opening bell, where are the sellers. Where are they why arent they reacting to that ugly warning that we got monday from apple why is everything no matter how negative treated as a buying opportunity. It is like there is always something to be said for instead of and i think i know the answer. I think it is the index funds. 60 is coming in via index funds and they buy everything, including the stocks that should be getting hammered by bad news. And they buy in waves and they are in control of this stock market not mutual fund or Hedge Fund Managers either. Yes, index fund buyers i know people call this market a bubble and blame an easy fed but maybe, just maybe, listen to me, there is no one toblame. You simply have Many Companies doing well and companies that have nothing to do with the coronavirus which is what hurt apple. And buyers use any weakness to back up the truck. They dont want to see if the stocks are down, theyre too eager to pull the trigger. If they dont use the dip to buy, theyll miss out on a rare and shortlived moment of weakness between waves cascading waves, of index funds buying consider the case of apple yesterday my wife and i used the day off to walk around Downtown Manhattan and i greed not to use the pc and not to examine the latest coronavirus news and not to tweet and something that tweeting and coronavirus im obsessed with. Despite my best efforts though nothing stops the news and i got an alert on my apple watch and the phone about the apple warning. They will probably miss the Sales Forecast this quarter and perhaps longer depending on the course of the virus which no one knows because the epidemic messed up china. I said to my wife, lisa. We could crash if we get more announcements like this. Apple is the most Important Company on earth if they cant make the numbers that means many others wont either you have to presume this is just the beginning. Her reaction her reaction, apple a tough go in china and would anyone else expect otherwise. Nobody is going out and shopping nobody is working. So what did you think would happen well, i explained to her the domino effect that apple could have and she asked if they were at their highs i said no. Then why sell. Stocks come back m that is what they do they come back it wasnt a rebuke as an honest view of how people feel about the stock market these days and the index funds waves. This could be the ground zero for the epidemic and they have Retail Stores and it is slowing and they make product in china and her reaction, then lets go to the apple store and get all of the iphones we need before they run out i asked why do we need more iphones and she said you never know and she immediately asked for the nearest apple store. I did not protest. Maybe it is time to go home and do some work when i explore the apple issue when i got home, this is what i came up with apple has six or seven supplier plants in the affected area around wuhan but theyre parts companies, sub manufacturers that could be replaced somewhere else in china. That could leave any could relieve any shortages even the ones caused by my wife however the more important question may be how many people can the Chinese Government get to go back to work the communist parties doesnt want to be a bottleneck but dont want to kill their own people i think it is a push if they could do it but we dont know yet. Even if the chinese could get manufacturing going again and supply the rest of the world, the demand within china is not great. You think this news could be devastating and it was certainly as we saw particularly at the opening negative pin action. The stocks dropped on apple broadcast and sear works and others didnt feel it and nvidia had a good market and supplies so tight, demand is strong which is all that matters to the maker. Amd, geez, the hottest of the hot. And soared since the last quarter the one that was supposed to be bad and it wasnt they put out google is using their processors crazy thing. I figures amd would get that business but people were wowed and stock surge nearly 3 . If you were worried about apple and what it could do to the rest of tech you fight amazon and facebook, the nasdaq kings with the latter benefiting from Mark Zuckerberg soothing words in europe that he was less recentive to and microsoft didnt get bogged down it rallied 1 . Tesla up 58 but honestly is that a news story any more why wasnt all of tech brought low by apple isnt that the question. I think buyers are waiting for dips so when we got them, at the opening, they bought stocks hand over fist to get ahead of the index funds hit. Only stocks called out by wall Street Research get hit like emerson. It has more china exposure thar most and that is the one think picked on. I thought that the sellers might say, if apple cant get parts what about retailers who source from china, arent they at risk. Isnt that should i wait on. And walmart investor felt comfortable buying the stock and a quarter with doug hick milan the ceo he told us, i know many purists were about the blowup and that could allow them to rival amazon and walmart is down from in the premarket to being flat and up and as they told a good story the 30 of the Digital Business could control the narrative helping the stock close up 1. 5 at the end of the day. Why not. Retailers walmart look cheaps on the number and it had had a floor. No wonder it closed up nicely. And you know the irony, the worst performers there was no news whatsoever. The banks. Why because of a sudden drop in Interest Rate that could get into a recession and not a lower one so the stock at jp morgan and others are doing awfully since they reported even though they reported great numbers ironic, bottom line, an apple preannouncement drives Interest Rate downs which hurts the banks or in tech of all places sometimes truth is stranger than fiction. Terry in michigan. Terry . Caller hey, jim. Thanks for taking my call. My name is terry burk heart, im a long time listener and the first time identified coming from the Upper Peninsula i took a position in [ inaudible ] hoping to get some gold exposure. I like the story but after the recent Earnings Report is significantly down i wonder if you think i should double down or cut my losses. I went immediately to heather and kate i went to the two producers who want to get people on, their own people on and i said i want mr. Boyd on and i do want you sir because i did not understand what happened with that quarter. And i need explanations. Im looking right now at Katie Spencer who was a person who was integral in my anger of finding out what happened. Shaerj gains being the other person and im not going to tolerate that lets go to kai lorb in illinois. Caller booyah, jim cramer. How are you . Im good. How are you. Caller doing great talks on beyond meat, holding it for three months now just hold onto it it is an ecosystem. I know people feel it is overvalued im a big believer in ethan brown and absolutely not going to distance myself from the stock and i think it has a lot of upside over a five to tenyear period. And that is how you have to think about it when you deal with beyond meat the market is ironics. Most stocks were unfazed by the devastating revenue and most of tech did well but the banks got crushed because a drop in Interest Rate and worry about recession with apple mad money tonight, a live person that helps over 18,000 people communicate with the customers and i have the ceo after a severe post earnings decline and Companies Like apple and walmart are feeling the pinch from the coronavirus but which stocks are taking the other side of the trade . Ill reveal. And cloud fair is one of the hottest to hit the tape last year but it stalled. What do the earnings signal . I have an exclusive. Stay with cramer announcer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer, madtweets send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc miss something head to madmoney. Cnbc. Com. We set out to make the best bike on the market, find the best instructors in the world, and tie it all together with a worldclass software experience. We ended up creating, as you all know, so much more. Peloton is truly a category of one and were just getting started. Now, lets do this. Together, we are going further than we ever thought possible. Im part of a community of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. We are solving problems that improve lives. Doprevagen is the number oneild mempharmacistrecommendeding . To one that can take on a bigger challenge. Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. You got to accenttchuate the positive eliminate the negative slow it down a little and latch on to the affirmative its okay but dont mess with mister inbetween wheneveryone is different. A, which is why Xfinity Mobile created a different kind of wireless network. One that saves you money by letting you design your own data giving you more choice and control compared to other top wireless carriers. Now you can choose unlimited, shared data, or mix lines of each and switch any line, anytime. No one else lets you do that. Design your own data with Xfinity Mobile. Its wireless reimagined. Simple. Easy. Awesome. What the heck just happened to the stock of live person. Here is a Cloud Based Software company that used Artificial Intelligence to help with customer rell aigs management. You make bots that could text with your users. Live person is one of the hottest stocks in the red hot group but on thursday night the Company Reported what it considered to be a disappointing quarter and the stock plummeted on friday before falling 4 more what went wrong. The revenue came in higher than expected live person had a larger than expected loss and the guidance for the next quarter and full year was discouraging and management is forecasts much larger losses and the revenue number for next quarter was also a bit light we talk to that live person since the ceo person is stepping down which is what wall street hates to see with a not so hot set of numbers but then again the stock is now plunge from 45 to 32 maybe it is overly plennisheded. Lets dig deeper with rob lacascio rob, welcome back to mad money. So lets go right to it. I know that you thought it was a great quarter and that is very clear and i know that the Conference Call was filled with positives. Yes. So what happened to the stock . I mean, we put out that we grew 20 in q4, that was 14 in 2018 and we grew guided 22 this year and we decided were going to invest more in the company because were a leader and well invest in innovation and i think the shareholders thought we would take off innovation this year and just focus on getting more leverage we will at the end of the year but were leading the pack and we have to innovate as we do this. Now i believe i just spent a read a great book by dave cody who is the former successful ceo of honeywell and talking about that you need to be both longterm and shortterm and opco is saying youre not giving us shortterm results and theyre toke used on the First Quarter guidance below because those who bought the stock at the head of the quarter were crushed. Growing 20 to 22 this year is what people expected and that is what we put out there i dont look at inter quarter, im looking at full year you know i take a longterm perspective and were going offer at giant space so the quarter is lighter than they wanted not for us. Were looking at the year of 22 growth which is awesome from last year. This is all organic by the way we are not buying companies to grow the business. No. Absolutely from how you do, i care about operating cash flow and the cash flow was light as jp morgan saying investment driving lower than capital profitability and and the ocf was light. So absolutely youre doing great in your eyes the stock is saying that youre eyes are cloud and i have to deal with the stock because that is the four walls of cramerica. Sure. So what do we tell people this is the right level . I think theyll see leverage and we told cheryl well see leverage in the end of the year in the model were boxing our investments and doing 16 million in innovations an the rest is leverage off the bottom line but i think were a Growth Company were looking at a giant space and so i care like you do about rating leverage, that is where were setting a rule of 40 we want to get to get to a 40 because now youre not at the rule of 40. That is correct but were investing and growing and going after a big segment of the market. How about the live intent analyzer which seems very proprietary. When i look at the space and we call it the conversational space, i think it is going to have as much impact as ecommerce or search or social. I agree. And weve talked about this the ability to talk to a machine and have a natural conversation, it it is in the collective consciousness of people. We all believe the alexa type situation should happen with every company. And we do with delta and tmobile and all of the big brands so were looking at now how do we take that to the world and live intent is technology to look at the intense that a consumer is having with a brand. I want to buy something, we have a way to analyze that and then use Machine Learning algorithms to scale those conversations that is what this is about. I felt that it could be a competitive space and you have so go for game, set, match. You have to. And i wish you would have telegraphed it more because then people would be happy with with it. I used the year to say were going to be a Growth Company and were going to bax our investments in innovation about 16 million and the rest is leverage off the bottom line i think it is good it is better than pretty good and were once again doing it organically. Cfo departing normal course of business. I decided i want to make a change in that department because i looked at that is the department full of data, were an ai company and i hired someone who is a leader in the ai space who has a great pedigree in Financial Services and all of that and he is going to take this but bring ai to that function. If were the guest ai company in the world i want all of the leaders to be experts at ai and hes one of them and john collins is taking it over. So we had a plan we looked at that and i just want to game change that role too. So if you have bots, say youre china, that would say people a third of the people are showing up because the virus, bots could take that place but i wonder whether the customers or the airlines are under such pressure because of the virus they could not spend as much as they did. There is a big pressure that is this, in q4 we signed a couple of health care companies. Yes and they want to talk about defending themselves from amazon because amazon want to go into health care and the way they think they could do that is scaling the conversations theyre having with customers and creating a different experience you go to a doctor, you have an experience with them and you capture that on a messaging platform and ai will help you with whatever is wrong with you. You want to process a bill instead of calling and being put on hold and you do that through a conversational experience. They want to game change it and the only way to defend is to get into the conversation after space. That is what they say. And were the company trusting to scale operations with the conversational platforms. So who do you think youre pulling away from where this kind of thing because i think people are saying, im a little frustrated but maybe they shouldnt be given the moat that youre putting up. I think the conversation base is as big as search and social i think one day there will be a trillion dollars company in this space and i want it to be us the things were investing in right now will allow us to do that and that is what is important. So the amazons and the facebook and the apples, theyre in the space. Jeff bezos made a big bet on alexa to say this is the way yes, he did. But it cant just be amazon and alexa but other companies have to have access to that technology. And you could be that source. Who else is providing it. No one else is. And ear were the Largest Company and were not big tech but we could go ahead and go after them and define a space and win it. I tell our viewers, look, the stock is down over the idea of investing more not because they failed because the top line was it is terrific. That is rob locascio. Do your homework and take a look and understand some of the analysts and how they feel but the transcript is very positive. Mad money is back after the break. Imagine traveling hasslefree with your golf clubs. Now you can, with shipsticks. Com no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. Sending your own clubs ahead with shipsticks. Com makes it fast easy to get to your golf destination. With just a few clicks or a phone call, well pick up and deliver your clubs ontime, guaranteed, for as low as 39. 99. Shipsticks. Com saves you time and money. Make it simple. Make it ship sticks. Its a masterstroke of heartache and redemption. The lexus nx. Modern utility for modern obstacles. Lease the 2020 nx 300 for 359 a month for 36 months. Experience amazing at your lexus dealer. Lease the 2020 nx 300 for 359 [narrator] at Southern New Hampshire university were committed to making college more accessible by making it more affordable. Thats why were keeping our tuition the same for all online and campus programs through the year 2021. [woman] i knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look we can do this [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. Free free uh. Free free, free, free. Free. Free free free thats right, turbotax free is free. Free,free free free. I dont want to profit ear off an epidemic that killed 2,000 people but we need to see how it is changing the world and some companies are benefiting because they benefit from keeping us healthy the first that comes to mind is clorox and this covid is persistent and some say it lasts for days and one product to kill it and that is the surface issue is bleach and that is why i carry clorox wherever i do. I dont think there is much choice you cant afford to have wipes because of the surface issue you also know the bleach could kill it on contact if they touch the virus. So you have both wipes and bleach now here is what is important. I cant recommend cost on this because the bleach in the wipes are just a small part of the repertoire the company gets 34 sales from home care and laundry and these products are a subcategory if they are struggling outside of home care then the stock would be untouchable but the weakest is bags and charcoal and 21 of sales and a Strong Enough driver could offset that. Stocks are well run and i think the stock is a buy which is why it is an integral part of my Charity Trust as ive been telling members of the action alert plus. Com club i talk about this. I say this is a product that, well, i think you got to have. We know that even the w. H. O. Says it works. Second winner is zoom video. Now every company i talk to with substantial exposure to china is thinking about installing zoom software and stay in touch with people working from home which is why people are supposed to work that is the new rule we spoke to ceo eric quan and he said the phone is ringing off the hook i thought it would go higher in the interview and it did next to nothing. Now it is on the move. Up 6 today. Zoom is at 96 and i imagine sales slowing down when the virus starts to spread beyond the epicenter. I wish i could recommend cisco but that is a large enterprise and not large enough to move the needle for a big company like cisco. Third there is teledoc from the your own home. People are realizing the benefit is why it went up 5 you should have bought and gilead, a drug company with the best collection of antivirals in the market. Theyre the ones who cured help tig hepatitis c. If you want to know what to give people from covid, it is gilead. Ip think they could probably fail because this seems indestructible in virals what should you avoid. The surgical mask but i dont think it works because the mask wont be enough to offset the weakness it is the opposite of clorox i know that is a short list. This virus has been a contributor to a slowdown in the Global Economy it doesnt lend itself to goods that are working. Gilead on hope and that is about it chuck in tennessee, chuck. Caller jim, thank you for all you do. Of course. Caller hey, i have a small position in bbby ive had it for about two months what is your thoughts on buy, sell and hold my answer is absolutely buy ive been steadfast. I know the shorts are never going going to quit. I like the ceo people dont understand that ridiculous preannouncement that he had was worthless he didnt need to preannounce. I want to know who his lawyer is so i could tell them they ought to hang up and move on because theyre not doing any client any any hope whatsoever the company did announce a big buyback and they have a strong cash position. Im looking at some of the things they said and i wrote 600 million Share Buyback and lets think about that for a second before we dismiss it like many of the shorts will. 600 million Share Buyback and the company is valued at 1. 4 billion do you want to buy or sell with 43 short. How about going to sherman in california reporter booyah dr. Cramer hello from sunny palm springs, california. Thank you. Caller is right now a Good Opportunity to buy more shares of tyson tsn. So it acts horrible i could tell when it acts horrible that means you should sell however i believe in the thesis that theyve got the food and china needs the food but there is a possibility that china they cant go out or whatever, the stock acts terribly and they did have a bad quarter and i think they should try to explain why it was bad it is not clear to me and i think the stock is a buy my travel trust own it but im not pounding the table because there is something clearly wrong with this stock or else it would be going higher. As coronavirus fears persist, i think clorox and zoom video and teledoc are buys there is much more mad money ahead as the 2020 president ial race heats up, campaigns could be right targets for disinformation and im talking with one ceo working to protect all of the president ial campaigns in the 2020 election cycle. Dont miss my sitdown with cloud clear. And then the greatest hollywood ipo that wasnt but what does endeavor say about the decision to pull the Public Offering and then tonights edition of the lightning round. So stay with cramer. At leaf blowers. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Dont get mad get e trade and start trading we sunleashing the promisegas of clean energy. At emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Othroughout the country for the past twelve years, mr. Michael bloomberg is here. Vo leadership in action. Mayor bloomberg and president obama worked together in the fight for gun safety laws, to improve education, and to develop innovative ways to help teens gain the skills needed to find good jobs. Obama at a time when washington is divided in old ideological battles he shows us what can be achieved when we bring people together to seek pragmatic solutions. Bloomberg im Mike Bloomberg and i approve this message. Some exciting cloud stock that had the miss fortunate of coming to the ipo and it is called cloud fair. A company that helps businesses run the websites and make them more secure and enhancing performance and rolling out a bunch of different content delivery into one seamless platform this is exciting shortly after it became public the stock spiked from 15 to 22 and then dropped back to 14, 15 in october and answer then it is working back up to 17 and that is where it closed today but the company is doing great cloud fare just reported excellent numbers last thursday and bullish for next quarter and the full year but the stock couldnt get any traction. It is down since it reported so is wall street making a mistake or is there something im missing. Lets take a closer look with matthew prince and the ceo of cloud fare to get a better look. Welcome to mad money. Booyah. Here we go. This is your first time on so i want to give you the floor to talk about what cloud fare does and why it is different from others in the space. So cloud flair is the service that makes the cloud possible. When we started the company was that the internet had some core problems and need tods be secure and reliable and fast and the fire walls and load balancers didnt work in the cloud there was nowhere where you could ship a hardware box to box. And yet you still needed to solve those problems so at cloud flair we built one of the Worlds Largest networks, in 200 cities worldwide to solve those problems and that means stopping 50 billion attacks every day for our 2. 6 billion excuse me million customers and 26 different Million Properties that rely on our service. And you have 51 Revenue Growth but what i thought was most interesting is the election. That you guys are big in making the election secure. I think that is a great thing to talk about. One of the things that we saw in 2016 when a lot of Technology Companies platforms were being used to sub vert democracy was that we could play a role in protecting it and so we worked with different political campaigns and with u. S. Both local, state and federal Election Officials to make sure that they could use our platform at no cost to keep their Services Online and available. We couldnt have built cloudflare without a stable and functioning democracy and os duty to help protect that. And i think you make this acquisition, the s2 systems acquisition in january and that helps the idea of security which is important and everyone is crazy about it. One of the things that weve seen is that there is literally nobody that likes their corporate vpn. I dont know what you have to use here at cnbc but it is a pain to get it up and running. So what we launched was something called clauoudflare fr teams and to say how can we use our threat data to keep our customers safe online and make it so you could have ays positive experience and what is we launched a version for free for consumers that are out there so if you go on on app and look up 1. 1. 1. 1 which is the easiest ip address you could be safe and use the cloudflare network. And people say are these just another acami. That is not a fair comparison. They are someone that weve admired and what we did was we started with Security First and built a network to support that. I think acami has seen what weve done and coming around to us over time i think there are five Global Networks that will matter cloudflare, acami and google and microsoft and amazon and those are the networks if you are online and you have to rely on them and what is powerful about us is were only two that are independent from the public cloud. You have 10 of the fortune of the fortune 1 thousandment that thousand and that continues because you have 95 and we dont have the 2019 figure. There are 550 customers spending over a 100,000 a year with us and Companies Across different sectors and industry if you look at big Cloud Companies that you admire that i admire like salesforce, shopify and zen desk and hub spot. Plus youre getting consumer packaged goods which is the holy grail of what were looking for. This last quarter on mars which was a huge mars . They signed up for cloudflare because they were worried about they dont want to give all of their data to an amazon or to a google exactly. So what cloudflare can do is be that independent network that sits in front of any of the public clouds and lets you as a business not have to put all of your eggs in the amazon basket because you never know what product amazon is going to launch tomorrow and be competitive with you and cloudflare is an extremely easy to use way. And versus google and azure. What they want to do mars wants to hake sure they were able to move between those two and you say that in your in all of your documents it is about going back and forth. They could have that luxury if they want. That is right dont get locked into any one of the public cloud providers and what we are is we make it easy to move between and mars wanted to replace the legacy hardware who were competing with are the legacy hardware vendors that were selling things that were expensive in terms of a capex spend and also in terms of maintaining the people just to make sure those boxes still work. And you mentioned sales force and maybe theyre doing the same thing. I cant speak to theyre strategy but theyve been a terrific customer and we admire them if you look at where cloudflare is today it is where salesforce was years ago and same market cap and same number of employees and were trying to follow in their footsteps starting with consumers and moving up over time. I want to mention lockup expired february 19. So we dont know what will happen or who will sell or not i expect that a lot of them wont because your stock is so low but i want to oint that out so people didnt say how you could not mention there was stock coming on the market. Im not selling any shares tomorrow and i dont expect to be any time in the shortterm. And when weve talked to who our largest investors are, they believe in the vision of this for the future and there is a lot that were just getting started. I agree i wouldnt sell. That would be a big mistake. All right. That is matthew prince, and chair of claude flare. I i was thrilled that he came on the show because it is such a good story in a year where everybody says everything is overpriced not everything is. Mad money is back after the break. You ever get the urge to go a little crazy . You know what im talking about, right karen . Huh . You wanna let yourself woah, but you cant do it here. Or here. It hurts more when you fight it. But totally cool here. Woah and here. Woaaaahh oh yeah. Woah, kid. She gets it. [ roars ] woah get it all out. So when youre ready to let yourself woah, theres only one place to go. Universal, baby announcer lightning round is sponsored by Td Ameritrade it is time it is time for the lightning round. And then the lightning round is over are you ready skee daddy rob in new jersey. Rob . Caller booyah jim from new jersey. What is happening my friend caller not much. I would like to first thank you for your knowledge and as an investor over the years here and i would like to ask you about a high dividend yielding stock underperforming by a big brokeage house on february 7th the stock is dupont. Dupont is now run by ed breen. It looks like the previous ceo is now gone. Why is he gone because he didnt deliver and it is not anything, it is just temporary so therefore i think i believe there is a down side i dont think there is more than that lets go to mike in West Virginia mike caller jim this is mountain money and i like booyah from West Virginia. I like the gorge there. Caller lets talk about kehmors, the spinoff from a couple of years ago. Beat the street by 14 cents last up week and dividend over 6 , what are your candid thoughts high priest. I worry about the there is liability there that is actually could hurt dupont. I just mentioned dupont. Im not a fan because i dont like the commodities and there are some issues involving a verdict that could come up soon so take a pass there that is a form of pollution that does hurt ground water to lee vonn in new york. Caller how are you im good. How are you. Caller im good. First call and my question for you is about ericson communications because it is possibly a 5g turn around and well ericson is okay. My problems with ericson and nokia are these are companies swamped by crushed frankly by huawei and the western nations in europe dont seem to be interested in helping their own which is wrong susan in california. Susan . Caller jimmy choo, thank you for searching for great advice. Chill man is in the house what is up caller ive been watching a fortune 500 science and Technology Lead got a contract with cdc and goes head and head with northrup and lockheed and just rose 11 today in the middle of a down it is named ldox. Such a winner we have liked this company ever since the spinoff continued to like it it is not done going higher even though it had a big move to jerry in texas, jerry. Caller jimmy chill. Yeah. Caller a big booyah to you from el paso, texas. Nice, i love el paso. One of the most fun towns. Lets go to work together. Caller all right so im looking at this company down about 10 from the 52week high as of of now. They have a Good Business and theyre Imaging Solutions as well as networ theyre down on the Network Services the company im looking at is sony sony is a Great Company and the japanese market is taking a little bit of a header because people are worried about coronavirus. People feel, including dr. Gottlieb who put the kibosh on japan. Im willing to stay sidebyside with sony. Lets go to rob in pennsylvania. Caller professor jimmy chill. Booyah. Ive been so friendly online. Just block, block and people to me what is going on. Caller what is your take on cherry Hill Mortgage we dont know what cherry hill really owns that is the problem. It is another one of the black boxes. I do not like the black box of Mortgage Companies and that, ladies and gentlemen, is the conclusion of the lightning round. E announcer the lightning round is sponsored by Td Ameritrade fiftysix straight, come on thats it, left trade right trade. Come on another trade, i want to see it more 80sstyle training montage . Yeah. Happens all the time. And now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Try to win by attacking, now, we know the trump strategy distorting, dividing. Mr. President it. Wont. Work. Newspapers report bloomberg is the democrat trump fears most. As president , universal healthcare that lets people keep their coverage if they like it. A record on job creation. A doable plan to combat climate change. I led a complex, diverse city through 911 and i have common sense plans to move america away from chaos to progress im Mike Bloomberg and i approve this message. When that lousy we work ipo imploded deals got canceled and sooner or later theyll be back and i want to check on one postponed im talking about endeavors the Parent Company of wme the Talent Agency known as William Morris and the sports media and Fashion Company and ufc. That is right. The profissional mixed Martial Arts League on fire. Im a client of William Morris so i speak from experience when i say they are great at what they do. Now endeavor was supposed to become public and they got pushed back on the ipo market turned hostile and i think it was a good decision to drop out. Im betting theyll be back. Probably sooner rather than later and a better price than they would have gotten and that is why were thrilled to have ari manuel the ceo here tonight. Welcome to mad money. Great to see you, sir. Hey how are you. Okay. So a lot of people say youre a Talent Agency. When i look through your financials, that is like a legacy view of your company. And yet were somehow unable to change the dialogue. Why is that . Well, you know, i think where you start is kind of how people see you. What weve done over the last march 29th is 25 years where weve changed the business into an operating business kind of a aware of the dynamics because of the entertainment business of how we operate most of our business at the time when with we started, when solar light came in, about 80 was in the representation business. Like the sports or people in the entertainment business about five years ago we decided the mix would be better at 50 economics and things we own like the ufc or freeze or things like that and 50 things we represent. So were a very fluid business but i understand it. I started in the Agency Business there was a show about me. Well, a show about you is funny. And not necessarily from what i can tell accurate. But back in the day maybe so. But i want to talk about is that ive always felt you have a unique view and vision if somebody wants to do something, you should take a stake in it. Here is my opinion about it we dont have any legacy infrastructure, i dont have to defend the cable channel were in the best position for where the entertainment business is going so if you just take one vertical, the television business, there is 150 billion ecosystem in the business whether it is abc, cbs, usa, cnbc there is an additional 35 to 40 billion coming into the business which is it a third more money coming into the business every year over the next five years. That is Just Television that is a really good place to be and that is just domestic and in ufc we know has been a tremendous source of just programming. For someone that was able to make a lot of money with it. It was great on fox were having the best year weve ever had with the espn and our partners at disney and espn plus i think theyre doing great too. So it is incredible. So lets talk about what happened with the deal i know that this Hollywood Reporter i dont know if they are dealing with the guy who used to be like the old guy from the hbo show but dram aftic last minute decision to pull the plug was a embarrassment but the temporary end of hope of raising capital to pay down debt and create a morale problem for some 7,000 employees who hold shares and ive been convinced by the leadership to sit tight. That is about as negative as they get what do we say to the Hollywood Reporter here is what i would say to you. We got caught in this we works growth overhang. We werent like other people we didnt have to go public. We were raising 500 600 million we averaged doubledigit Revenue Growth, doubledigit ebidta growth so were doing well. If you saw recently, we hit or ebidta numbers in the filing we hit it last year. We did the acquisition of on location which well talk about. Right we gave a dividend to everybody at the company because we had the cash flow to do it. We reduced ing with well delever based on normal ebidta growth were in really good shape i was not going to not i was not going to hurt my partners that invested in me and backed up by a bad ipo market. So how about this acquisition done which you were supposed to not have any money according to hollywood. Correct i guess they were wrong. And the acquisition to me seems to be a great way to be able to do a lot with sports maybe even gamble. Well here is what i would say to you is, were in the business with the nfl, with one of the great assets of all time and the nfl rolled into our acquisition. Rolls their what . Equity into our right. And we have a lot of events whether it be ufc, fashion, into creating an experienced business, starting with the super bowl and our partners with the nfl and all of our assets globally that we could bring to the table. Is it possible that when you do try to become public again, that there is a shift in the amount of revenue that comes from agent versus programming that would plaque it so that you are a unique Programming Company at a time when the world is thirsty for programming . Here is what i would say to you. 50 of the economics comes from representation locked in longterm deals and 50 comes from things that we own. At one point you and i talked about in the medical area accompany that kind of had a a balanced approach. Iforgot the name of the compan that we discussed. Were the same way were flexible we look at things on a global basis. Sometimes with we just represent it, sometimes we represented and then we acquire it like the ufc, like bull riding, like freeze. And that is the way we look at the business and i think it is for where the world is going, i think were best positioned as one of the guys best positioned in the entertainment business. Know that abbvie was the was the drug part and the device part and people said we could make more if you split it. To me that is not the right time youre building Critical Mass and pay down debt but it does occur to me that the idea that you are an agency is just the way it was. It is a very small piece right and the software is a Service Business for entertainment. Some of it is, correct. But then you could accumulate more and that is the smartest way to make more money and no one has that model it is very hard to be in this place to have that model. Exactly right. I dont think any of the major studios could do it and disney has done a great job in acquiring asset and growing their business. And what happened to the old from the tv show. A lot of meditation wow okay ill give that a try it is ari manuel ceo of endeavor dpen they are my agent i want to be sure that you know. Theyre private. But that is full disclosure. It is really important mad money is back after the break. 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Stay right there because you dont want to miss a cnbc special report, yes, when the coronavirus outbreak tell us about my friend Tyler Mathisen is coming up next i like to say there is always a bull market somewhere and i promise to find it just for you right here on mad money. Im jim cramer se good evening everyone, i am Tyler Mathisen it has been 51 days since the Worlds Health organization alerted to this health crisis. The who confirmed 92 kaess of human to human transformation. Human to human spreading increases. Tonight china releases a new report showing which age groups are most susceptible to the killer virus it is not the usual