Behind us, we can go back to our regularly scheduled earnings. No, we cant. Ill give you explicit instructions about how to handle the stock, but overall the damage i expected from the too hot opening meaning an opening that was much hotter than i would have liked wasnt that threatening to the rest of the market. The average is worth much more in anticipation of alibabas open bug it wasnt that unhealthy. Not that much Collateral Damage given the deal speculation on the floor of the stock exchange. Which brings me to the game plan for next week because i think we can focus on events at hand and not just ipos. Although theres an intriguing now we take it for granted because credit is so hard to get and the average person cant take advantage of the low rates the trawl rich hedge funds managers cash in on. Id like to see the number that tells us the recent dip in ratespurred sales. We also hear from auto zone which has a history of selling off after it reports and almost instinctively rallying lazarus like the next day as people realize the old the cars on the road the more we need auto zone. I expect well hear it continues to buy back stock aggressively and thats amazing given that auto zone is among the most voracious crunchers of its share count. In other words, by the dip. After the close on monday we get the results. Heres a chain thats been putting up disappointing numbers. I expect cnet stop like kohls. I wonder if this quarter wont show the same upside surprise we used to get all the time. If so, its a buy just like kohls, tjx turned out to be. Companies can also benefit from the huge dedplien the cost of cotton which has been a boon. How about bed, bath and beyond . That reports tuesday. Its a place i like shopping even has azt Company Ended in the culdesac of heart break. And get rich carefully, i detail about how the coportfolio manager of my actionalertspl actionalertsplus. Com bought this for my Charitable Trust. Didnt rally back but we gave up on it. Here we go again. I expect nothing good from Bed Bath Beyond although theres chatter it might attract equity money because its gotten too darn cheap to stay public but i think the private equity guys feel theyre too easily hurt by amazon so i think the stock will most likely continue to twist in the wind even as i spend a fortune at one of its divisions. Z sometimes stocks signal changes before that happens. I think that will map with carnival cruise. The stocks have been going up quietly the rest of the players in the cruise sector, as if the tragedies are finally being left behind it. If we get a decent number, i have to tell you, its not done climbing. It can go higher, much higher. I also expect to hear about the pricing of the Citizens Financial Group ipo, philadelphians know the bank, thats citizens financial. This is being spun off from the world bank of scott land. Banks have been red hot and while this is no ali ban baah be ill give you the parameters for it. Wednesdays chock full of earnings. I like to get the skinny from pay chex but the stock has been flat lining, thats because i believe Small Business formation has taken another step down, perhaps because were coming closer and closer to the penalties of the Affordable Care act and thats making it much more difficult than what your payroll should be. Alsoing a censure. This is a stock thats had a history of disappointing. Yet it finds itself trading above where it was by the time the next someone recorded. This is a classic dip bought equity. Thursday we get nike. Once again, remember, we here in a red hot bull market from what i can tell. Weve heard from Companies Running shoe lines delivering smoking results. We know underarmor put up great footwear number. The only problem is that nike stop has run up too much because of how great decker is doing and how great underarmor is doing. Micron also report there iss a real tugofwar going on with micron that doesnt involve demand, which is robust. It involves supply. Mainly a potential for too much supply from korea where the two other companies that make the same semiconductor are located. I havent liked the action of micron of late. Finally friday, blackberry. I think company is in a longterm decline accentuated by that new apple iphone. I would be very careful about speculating blackberry because its been inching up too much for my liking. I know many of you cant resois if you feel compelled to own this thing, ring the register if the number seems strong because i expect analysts will distance themselves from the stock. Heres the bottom line, its back to business as usual with alibaba behind us. We survived it and wednesdays fed meeting without much damage and i think barring any more geopolitical catastrophes that we can be in for decent sailing from here until the real earnings season begins a fort night from now. Lets go to irwin in my home state of new jersey. Irwin . Caller how are you, jim . Im good. How are you . Caller my question to you is in the not too distant pass remember some third world country that said the price of gold would spike 20 to 30 an ounce. Ive had groeld the 1800s and now the world is in turmoil and the price of gold has dropped down to 1200 level. Is the play on gld done . I dont think it is. Im telling people you can have up to 10 of your none gold. My retirement money is like that. Dont expect the insurance of gold to make you money any more than the insurance right now of your auto or house but thats all we have it for is insurance. John in arizona. John . Caller jim, thank you for hosting such a great show. Thank you. Caller my question for you today is about aflac, symbol afl. Its near its 52week low and i wanted to get your thoughts about that. Im not crazy. It doesnt have earnings momentum. It yields 2. 5 , if it yielded 3 id take a shot. I think travelers and hartford is better and i know aig is better and that stock was down after the resignation of a key person. Were pitching to buy more. Were back to business. I think we could be in for decent sales until the real earnings season begins. From printers to paper clips, staples has you cover bud it could use Nuclear Weapon the growth department. Ill tell you how it can pinch a deal. Then alibabas record breaking ipo made a former english teacher one of the richest men on the planet. What can the stock do for you . Plus pier 1 is taking a beating after another weak quarter. I kell can ask the ceo if ther any hope for a comeback. Theyre custom made trains. You cant get any better than that. Siemens trains are not your grandparents technology. Theyre something thats gonna change the cities we live in today. I find it so fascinating how many people ride this and go to work every single day. Im one of the lucky guys. I get to play with trains. People say, wow, we still build that in the United States . And we say, yeah, we do for over 60,000 extra curricular activities help provide a sense of identity and a path to success. Joining the soccer team. Getting help with math. Going to prom. I want to learn to swim. Its hard to feel normal, when you cant do the normal things. To help, sleep train is collecting donations for the extra activities that, for most kids, are a normal part of growing up. Not everyone can be a foster parent. But anyone can help a foster child. Theres one thing that can keep stocks heading higher. Recordless of the pessimists out there who keep saying this red hot yaibl deal is signaling a top, im talking about consolidation, especially in sectors like retail where theres too many competitors and stores unlike china where alibaba thrives so the whole industry could benefit from taking a few players out of the equation. A couple weeks ago i suggested a massive merge saying gene see should buy vitamin shopp, an idea i stole from the deed of retail analysts at credit suisse. Sure enough, yesterday we started hearing rumors that gnc is exploring Strategic Options and vitamin shops shareholders are pushing for a sale, hence why both stocks rallied nicely. Although i bet the move is far from finished if theres any truth to the chatter. I think where there is smoke there is fire. Buy, buy, buy. In an increasing omni channel world where the biggest competition comes from the web, there are huge benefits from consolidating the bricksandmortar side of the business and the market recognizes these benefits instantly. If you look at mergers in hard line retail space, the stock of the acquirers average rallied 40 . Thats dramatically up from the s p 500 from the same time. No wonder theres so many mergers and acquisitions and thats why tonight i want to propose another retail merger. Once again borrowing an grd the great gary balter who is singing this is the end about sears and that seems to be resonating from the plunging stock of that company. He thinks its time to consider some consolidation among the Office Supply retailers and i agree. I think that staples, which has been a real dog lately, down 18 year to date, should buy office depot. Now, gary laid out his thesis for why this deal makes sense last month but since then the conversation, its fizzled. Ive taken some time to stud think analysis and after deep review i have to say a merger would be the best thing that could happen to staples and office depot. The synergies would be enormous and the combined company would be stronger than either player on its own. It makes a ton of sense both for the companies and especially shareholders. How do i know that . The n part because two years ago office depot announced it would require office max. Term time people said it was too drunken sailors trying to hold each other up. Wrong. This is the number two and three players in the Office Industry combining to form one larger competitor. The results of the deal . Theyve been fantastic. Office depot stock has doubled since the deal was announced. A double in two years, not too shabby. Just as important, by closing overlapping stores, shrinking their sales force and slashing corporate overhead, Office Depots acquisition of office max created 700 million in synergies. That was astounding. In fact, the synergies from this merger were more than six times greater than the combined earnings of the two chains before the deal. They were killing each other gigantic. Buy office max and then aggressively cutting stores and Closing Costs made office depot more money than they could have generated on their own. So given how well theyve done since acquiring office max, it makes sense for staples to turn around and snap up office depot. Especially since staples seems to be really struggling on its own right now. All right, so now i can hear you. Many of you are saying hold up, cramer, theres no way the government would ever let this deal happen. I mean, staples tried to buy office depot before and the federal trade commission shot them down in 1997 to which i say a lots changed since 1997. Dont take my word for it, heres how the ftc put it when they blast Office Depots acquisition of office max. The market for the sale of Consumable Office supplies has changed significantly due to proliferation of mass merchants and club snores the explosive growth of online commerce. The evidence of anticompetitive effects that caused the ftc concern in 1997 was simply absent in 2013. Translation with all the competition for the likes of target, walmart and costco not to mention amazon, all of which have gotten into this business in a major way, there was nothing anticompetitive about office depot buying office max and i think the similar logic applies to stay ps buying office depot. So assuming regulators allow the transaction to happen, how good would bit for staples and office depot to combine . They are both already out there Closing Stores aggressively. Staples has more than the 2,100 locations. What were they doing . Earlier they announced plans to shut down 225 of them in north america, including the one two blocks from me which i have to tell you was almost always empty. Heres what i thought of every time i went in there. It was a bowling alley. And back in may, office depot told us theyre planning to close at least 400 stores in the wake of office maxs transaction a little more than ten months ago. Both companies have embraced a shrinkingtogrow strategy. Office depot is expecting 100 million in synergies from their store closures. But if staples were to acquire office depot, i bet they could make even more money per store closure. Because theres much moror lap between the two chains. How much . In addition to the locations theyre particular planning to shut down, a combined staples and office depot could close another thousand stores. Thats 300 million in synergies, or 300,000 per store. We have so many more we need. When you throw in that corporate overhead that could be cut, the consolidation of the two sales forces and the increased purchasing power of a larger chain, i think buying office depot could lead to over 1 billion in total synergies for staples. That could be conservative. Can you imagine how high stock would go . Instantly it would go. Instantly. What would it mean for profits . A billion dollars in synergies would represent a 50 increase for the earnings for interest access depreciation am orization in 2015 which would translate into 110 boost per share. Buying office depot would let staple doubles its earning power. No wonder gary thinks they could pay an 80 premium and still make a killing. Heres the bottom line, the numbers speak for themselves. If staples wants to turn things around in the midst of a challenge environment, if staples wants to nick its stock off by 50 , the easiest and smartest try do that is by acquiring office depot. I think the deal would be a win for both companies and more important a win for the shareholders. If staples drags its feet, i wouldnt be surprised if an activist or two forces the issue. It just makes too much sense not to happen. Larry in massachusetts. Larry. Caller jim, sincere compliments to you, david, and carl this morning on your respectful, efficient, and probing interview of jack mott. Sometimes in life youre fortunate to be a journalist. How can i help . Caller his plan to help money to help young people succeed reminds me of bill gates and warren buffett. Major kudos to you. To a favorite other subject of yours, beer. With asb miller unsuccessfully approaching the heineken family monday, theres been speculation about other possible spiritual consolidation. The growth is slowing by almost half and various others tap are being suggested as either buyers or sellers. Monday on half time i expected stephanie to at least mention cramer fave constellation. Is it getting lost in the shuffle . I think that a whats happened is people feel that if molson coors were able to buy miller, it forces the sale of miller that would make it so molson coors is a better performer than constellation. If youre just looking at earnings, constellation is a better play. Basically what im saying is constellation is probably two down and seven up. I like that, but people think coors can be gigantic. Merger mania, listen. Sometimes consolidation fixes things. If staples were to turn itself around i wouldnt be surprised if an activist comes in. Much more matt money ahead including what could be the hidden secret behind alibabas success. Then pier 1 missed the quarter. Can the ceo rite the ship . Ill find out in my exclusive. Plus, big tech news that has nothing to do with apple. Stick with cramer. If energy could come from anything . Or if power could go anywhere . Or if light could seek out the dark . What would happen if that happens . Anything. In a we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. My Immediate Reaction this morning when i met jack, the man who built alibaba which just became public today into what may be the most lucrative fast growing company. Not just z not just the ecommerce. I figured alibabas stock would be red too hot and thats what happened with its opening, a huge gap up from its 68 pricing. And i thought it would sour the whole fair with excessive exuberance. I know it would meaning deals like facebook which dishearten investors or the dotbombs from 1999 and 2,000 that ended in such heart break. I wanted to point out that you could argue alibabas valuation is too high. You know what . A few minutes into the conversation of the new york stock exchange, i found myself quite taken by this mildmannered 50yearold gentleman. Frank frankly, his humility aastounded me and not just because overnight hes become the richest man in the peoples republic of china, yet he acted as if he were one of the gang of hundreds of thousands of teammates with whom he works. It was when i asked him who his here rewas who he aspired to be he positively took my breath away when he answered. The hero i had was forrest gump. 14 years ago you know hes a fictional character, though. I liked that guy for coming to new york. Because i watched the movie again telling me that that a few years ago i couldnt earn that. Theres more too lifetime than anyone in history but he carried himself like the humblest man on earth. What a perfect man this fellow just might be when he pulled out a present for us in neatly ribbon tied golden box. All i could think was he was about to pass it the candy box from forrest gump because for ma life is just a box of chocolates, i wasnt disappointed that the box contained a alibaba tshirt, but the chocolates would have been a fitting gesture after the revelation of his true gold model. Wow. Forrest gump as your role model. Ive read the coverage and i regard much of despairive the. Theres mugness basically suggesting the companys ipo could represent the key dmard the house of cards that is the stock market. Im bracing myself in the stories that say it marks the beginning of the end, another dotcom bomb from china, i know the cynics wont be able to resist the story line of the ipo, how can they not . I mean, put it this way, whos going to remember that you called the top of f the marquee goes higher. No one, free pass. But you can be the sage of wall street for years if you say that the largest ipo of all time was the death nell for the bull and you turn out to be right. Hey, i wasnt happy with the deal, i was hoping the stock would open ten points lower, you watch the show, ten points lower than it did so it doesnt overheat and you can make money if you bought it there. Lets go back to jack ma and what hes created. He Battalion Company that fulfills retail needs for half the people in his home country. They have internet access. The other half await usings alibaba as their all around retailer because theres so few retail outlets in china. The country as understored as we are overstored and theres no way its going to need to build as many stores as we have because of alibaba. And unlike amazon, mas done this without sacrificing profitability. In fact, alibaba is more reminiscent of the early days of walmart where sam walton always thought that growth and probability go hand in hand. Ironically, at its peak today, alibabas marking cap was almost exactly the same as walmart. But because he cares so much about making money for shareholders even as he professors a love, an obvious love for his customers, including having a lucky 8 of them ringing the opening bell, off stock that even at 93 isnt classically overvalued. At this price, for example, alibaba trades at 37 times next years earning. Its going faster than facebook and just for comparisons sake twitter sells at 140 times earnings but thats a bet on big numbers to come. With alibaba you have a burden hand. I wasnt just taking my mas edition of profits, though. I found him to be a Great AmericanSuccess Story except hes from china. He was dirt poor when he started, he had a vision of using the internet to harness retail for the masses, not just retail but wholesale, matching entrepreneurs for from all over the world, poor people from africa, people poor people all over the world. And you can match those entrepreneurs with craftsmen worldwide to manufacture products to help them realize their dreams. Hes an inclusive capitalist in a country run by communists and i got the feeling he wants to make everyone worldwide as rich as he is. There is nothing zerosum about this man. Hes not a modern day mao making everyone poor, hes trying to make everyone wealthy. So, yes, i like ma. Which we had more ceos that shared those deals. At the same time, i fear my judgment is so against the grain right now that if the stock falters ill be regarded as a fawning acolyte of just another overhyped stock. Ill take that risk. Oh, and about the stock, im sure there will be plenty of people who wake up on monday with the negatives i just described and theyll ring the register. Possible to theres a swoon and you can get the shares of the Capitalization Company at a discount where i said it was worth it back in the low 80s. I think you do it. I believe in the company. I believe in the man. Heres my bottom line on the largest ipo of all time. I think alibaba is not crazily expensive. While i prefer to own both facebook and google here, i cant dismiss either jack ma or the enterprise hes built as overvalued. Even though both do seem almost too good to be true because maybe, just maybe, theyre not. Much more mad money ahead. Pier 1 is making a habit of taking a dive. Find out if the sale of the century or maybe you should be eyeing different merchandise. Then arguably the biggest thing to happen in tech in the last hours is not the iphone 6. Dont miss my take. Plus all your calls on a fast fire friday edition of the lightning round and the week that was. Stay with cramer. Z. Whats the matter with pier 1 imports and can it be fixed . Not no that long ago, pier 1 looked like one of the greatest turnaround stories of the post recession era. But after a string of missed numbers, including a disappointing quarter reported this wednesday night that caused a stock to lose 18. 5 of the value, just yesterday, we have to wonder if the company is facing serious longterm problems and if so can it be turned around . When pier 1 reported they missed on the top line and bottom line and slashed their four year guidance, at the same time management said they have a strategy to turn things around and provided a plan to get back to profitable growth. That has stock been overly punished . Lets look at alex smith to learn more about the quarter. Mr. Smith, welcome back to mad money. Jim, thank you for inviting me. Alex, you say it up top in your release. You say we were challenged by soft store traffic and, more significantly, by declines in our merchandise margins. Can these be reversed within the next two or three quarters, sir . Well, jim, we have a great confidence in our merchandise thats coming in in the third and Fourth Quarter and as you know, pier 1 is good at the holiday season. We know our store execution will be great and were confident in the enhancents were making to pier 1. Com which come in to play the next month or two. So well give it our best shot. Do you think i was trying to youre online is very compelling. One time when we spoke a few years ago it wasnt that good. Are we at a position now where i detect from the call that maybe you have too many stores because online is so good . Online is amazing and our customer is voting and saying this is how we want to shop which is why we accelerated our whole omni channel strategy which we call 1 pier 1. But the amazing thing about this, and this is so whats so cool about 1 pier 1 is 50 of our sales are actually touched by the store in some way or other. So what i mean by that is 25 of all online sales 33 of our order online is pick up in store. So thats a very powerful model and we see stores and online linked. They play together and thats what our customers like. Now, having said that, on the margin are we going to take a very, very close and hard look at our store portfolio . Absolutely. Maybe there are threestore markets that should be twostore markets and maybe sevenstore markets that should be fivestore markets but rest assured well look at that very, very carefully. Your company has been buying back a lot of stock. It bought stock back this quarter yet the can quarter was poorly received by the analyst. Was it a mistake to buy that chunk of several million shares. Should you pull back from the buyback . Maybe rethink until you offerings come through that youd like to see . I think thats a very a very good question, jim. Heres what we think. Were going through that bumpy patch in a moment but we have a strategy which were confident in. But this major transition as we move from the hugely successful bricks and mortar business which you kindly kindly alluded to i introduction which will be a successful omni channel business, we know that as we move a little further into this transition and the investors start to see some of the benefits of all the investments we make coming through, we know our stock will start moving again as it did in the past. So we feel really comfortable about buying back stock because in the end its going to be great for our shareholders. One last question. I know that you talk about the omni channel and how youve been integrating the stores. When i go in for halloween, for instance, i might go in for one particular item. I have walked out for my daughters when i go for when theyre at school, i have walked without maybe twice as much merchandise as i thought i would when i went in. But if im on the web site, i dont do that. Im targeted. Dont you terrific idea that people like kme just go and get what we want and not necessarily what we didnt know that we wanted because we went to to store . Well, i think thats one of the interesting things about this whole sort of move to online. Were very focused on building the omni channel multichannel customer. And heres why. We are the moment let me back up. At the moment 60 of our sales or thereabouts are coming from brand new customers who are shopping as online only. The bulk of our sales are cofrom store shoppers who have converted to online shoppers. And what the data tells us is that the multishopper shops more frequently and spends more money than the store only customer. In other words, we get an extra visit and an extra purchase. So what were trying to foster is the best of both worlds because to your point when you here in the store and browsing youre going see something you didnt know you wanted and youll pick it up. So we have to make the two work in harmony and thats, again, why were so focused on not only the instore experience and the online experience but the two working side by side. I appreciate you coming on. I know it was a tough week, you didnt duck it. I want to thank you. Alex smith, the president and ceo of pier 1 imports. Good to see you again, sir. Mad money is back after the break. Anncr now you can merge the physical freedom of the car, with the virtual freedom of wifi. Chevrolet, the first and only car company to bring builtin 4g lte wifi to cars, trucks and crossovers. Hi mom. You made it anncr its the new independence. Sfx ambient park noise, crane engine, music begins. We asked people a question, how much money do you have in your pocket right now . I have 40, 53, 21, do you think the money in your pocket could make an impact on something as big as your retirement . Not a chance. I dont think so. Its hard to imagine how something so small can help with something so big. But if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge sfx crowd cheering might not seem so big after all. Take and. Exhale. In. Aflac and a gentle wavelike motion. Aahhh ahhhhhh. Liberate your spine, ahhhahhhhhh aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. Find out how fast aflac can pay you, at aflac. Com. It is time for the lightning round. Are you ready time for the lightning round. Jay in new mexico. Jay . Caller thank you for taking the call, tremendous amount of training today in yahoo please tell me whats going on. People are feeling that they bought it too high and now they got remorse and its going to come down and marisa meyer wont know what to do with the money. I say own yahoo. They have so much money and alibaba is not going to go down that much and theyll be able to ring the register over multiple years and they will reinvest in the good things. I like yahoo brad in massachusetts. Brad . Caller jim, ive been watching etn. Whats going on . My Charitable Trust owns it and im horrified. I cant believe someone doesnt try to do something here. This has been a big disappointment. And the stock does seem to go down everyday, it doesnt have the yield support that i like. Im very unhappy with etn. They have to deliver this quarter. Lets go to harriet in illinois. Harriet . Caller yes, hi, happy friday, jim . Exactly. Whats up. Caller what do you think about txt . I think its a very inexpensive stock. I should have included it when i did my my big long pieces about defense, the Defense Budget is going up, i think its a good idea. Tim in california. Tim . Caller hey, cramer, i speechless over the run in schwab. Its forecasting that higher rates are coming and that the individual investor is back. I dont see either but i see that thats how people are playing it. Ive been playing it with Goldman Sachs so i understand schwab. The whole come splex goiplex is. Lets go to zach in new york. Zach . Caller how are you doing, jim . All right, how are you . Caller good. Good. Go ahead. Go ahead, zach . Maybe zach dropped and we should take another call. Why dont we go to chris in rhode island. Chris . Hey, chris. Caller hey, jim. Big booyah too ya from rhode island. Hows it going . Not bad, you know, kind of a long day but a good interview with jack ma, i was proud of the work dewe did. How about you . Not bad, my question is about apo. Has a decent dividend, special dividend been good and the ee is attractive. What do you think . If were going to go down that path id want to go with kkr and henry kravis. Thats an outfit i want to be more closely affiliated with. Mark in california. Mark . Caller booyah, cramer. Your thoughts on steel dynamics. I like them but all the business is going toward letter x and new corps. New corps in particular overlooked. Id prefer you to by b there. Brian in mississippi. Brian . Caller booyah, cramer, welcome to alibabapalooza. Whats going on . 1300 shares of nokia, bought it in 2012. Hold on to it. They reconfigured themselves. The rest is good. I think you can own it. Andrew in new jersey. Andrew . Caller jim . Youre up caller thank you, jim. Quick question, jim. Hudson Citibank Corporation located based in new jersey. It was supposed to be a merge we are mnt bank and theyre having troubles. Your prognosis . Id rather own other banks and there are many other banks i would like to own but i feel badly for the family of ron hermanse who was a fan of this show and a friend of the show but i wont recommend that stock. Lets go to bob in new york, please, bob . Caller jim, the most entertaining way to learn about wall street is jim cramer. Thats the plan. I gave a talk at nj pac and im thrilled. How can i help . Caller how much do you love fnfg . What is it, eight bucks now . That is too darn cheap. I think you buy it, maybe ahead of citizens finance. Fnfg is for me. Agnes in florida. Agnes . Caller yes, jim, thank you for taking my call. I want to know what your feelings are on nee. Hold or fold . Thats a growth utility company. Its very good. Juneau beach, i have new buddies staying with me. I think that stock at 3 with a good growth pattern is good. Not as good as dominion and ill take letter d over it. Ladies and gentlemen, thats the conclusion of the lightning round. Remember in wh2007 when i sd the fed knew nothing. They know nothing [ various languages ] news flash. The Federal Reserve is run by intelligent people who make judgments based on the facts. Caller booyah, jim, this is jerry. Im the caller from philly. Thanks to the best looking man on tv. Caller booyah, booboo. I like the miguel tote. Lets have the empanadas with salad in them. My friend had the skirt steak. Thats my dads bag. His company makes. It you wear purple really well, too. Well, thank you very much. Maybe ill donna outfit tomorrow. Ding floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. So the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with thinkorswim from td ameritrade. Get live squawks right in your Trading Platform your studied day and night for her drivers test. Secretly inside, you hoped she wouldnt pass. The thought of your baby girl driving around all by herself was. You just werent ready. But she did pass. cause shes your baby girl. And now youre proud. A bundle of nerves proud. But proud. Get a discount when you add a newlylicensed teen to your Liberty Mutual insurance policy. Call to learn about our whole range of life event discounts. Newlywed discount. New College Graduate and retiree discounts. You could even get a discount when you add a car. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. If you give me what i want, i can still call off the other two but ill need to borrow your phone. Red is the new black. Lost amid all the alibaba hoopla, a pair of moves made by two software companies, the departure of Larry Ellison from his ceo job at oracle, the company he founded at the purchase of concur technologies, 129 a share, a whopping 24 premium to where the stock was yesterday. I think in many ways these two very different changes are related, at least metaphorically. One company, oracle, represents the twilight of a different way of computing, the traditional noncloud style of software that ellison pioneered and the other, the sap sack we sigs of concur embrace new role of cloud computing, albeit at a steep 7. 4 billion price tag. Concur recommended endsly on mad money pretty much owns the silo for cloud computing. Larry ellison was a great man who organizebly made oracle into a great company. They helped name traditional ibm style obsolete by embracing Client Server technology which leads your desktop to bigger equipment located in house. Everything sits on an trawl proprietary internal system that you pay oracle a huge amount of thetolicense creating an annuity steam for the giant thats almost i believe possible to rip out. Hence why Larry Ellisson became one of the richest people in the world. Another company often goes head to head. Suddenly out of nowhere along comes salesforce. Com, crm, with a disruptive untethered platform that stores your data not only on the expensive hardware but in the cloud itself. You bring in salesforce. Com and you get a cheaper, better system that has become much beloved, hence while sales force was the Fastest Technology ever to hit a run rate of 5 billion in sales. And 4 billion, and 3 billion, and 2 billion. And Larry Ellison didnt see it coming. When they were taking off, he paid up for Sun Microsystems for 5. 6 billion. That acquisition which oracle has defended year after year has been a disaster and was one of the chief reasons why the quarter was so disappointing, hence the stocks 4. 2 decline today. Tough. Now oracle does have its own fastgrowing cloud initiative. The only bright spot i saw as allison said last night, were focused on becoming number one in the cloud, being bigger than salesforce. Com in the cloud. Whichtowhich i say ouch and good luck. Its now a slow growing Legacy Software company while sales force gives business that one time would have gone there. If anything, i can argue the goal is getting wilder. How about that competitor sap . It has to catch fun salesforce. Com and i think buying concur which has the best stop one cloud soft swear a great way to do it. We talked to steve singh the ceo of concur many times and recognize this company has become unchallengeable. Its this far ahead of the competition. This is type of Company Oracle should have bought rather than buying back its own stock. Now, i have a lot of respect for the two people taking over the ceo position from ellison, mark hurd has been doing a lot of the day to day heavy lifting at oracle and sophra katz. Ellison stairs on as the chief technologier . But its now herd katz show. Herding cats, tough job. It was time for change. Oracle has consistently tried and failed to play catch up to salesforce. Com. Maybe with this manager shift it can happen faster but the simple truth is that ellison, the vicious competitor who crushed the old guard on the try michael oracle a Tech Software powerhouse got beaten by a younger version of himself. Mark beniot, the founder and ceo. Lets hope its not too late for oracle to stay competitive that n the world it ignored for too long that has become the Gold Standard in the Information Technology business that oracle really started. Stick with cramer. The all new, head turning cadillac ats coupe. Its irresistible. We do . I took the trash out. I know. And thank you so much for that. I think we should get a Medicare Supplement insurance plan. Right now . [ male announcer ] whether youre new to medicare or not, you may know it only covers about 80 of your part b medical expenses. Its up to you to pay the difference. So think about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. 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Join the scientists and engineers of exxonmobil in inspiring americas future engineers. Energy lives here. I expect alibaba to have another move, another assault up to the mid to high 90s and if you bought it at the end of the day or the opening, you probably want to trim some back because i think it could hit back to the 80s where i might pound the table because its not that expensive and i like that fella jack ma. I dont want to be too cynical about this man. I think hes got a lot of heart. I think hes doing a lot of things i wish other ceos would do. He seems like a real good capitalist, even as he is, indeed, from the peoples republic of china. I like to say theres always a bull market somewhere and i promise trying to find it just promise trying to find it just for you right here on the following is a cnbc original production. It may be the most recognizable brand on the planet cocacola. The heritage of this company is equal to none. 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