Management we dont talk about it enough on this show. Once money has been given enough to a specific business sector you have to stay within that business sector no matter what. Today, with the dow dipping 15 points nasdaq climbing. 02 , we saw this dip large, and to find the winners and losers with a host of secondtory sectors and i bet it will do the same thing tomorrow so listen up. The history of tech in the last year is pretty darn interesting. For most of 2014 money will be pouring into what i call plain vanilla technology. The Power Industry the cell phone, what do stocks have to do with Enterprise Spending theyre the back bone of modernized computer business. Slowly, though the interest of what some have described as old tech have gone away. The intel with microsoft and what they need to keep their stocks roaring, they gave you remarkable lines in 2015 guys those were the standouts. Those were a bit of can you do better than that in both of the quarters. Now, if you believe that expectations came down a bit the stocks hit a wall. Microsoft gave you a very uninspiring quarter, with totally lacking in guidance when many things were expected that used to be used in a breakup, it got hit instead with a slew of downgrades. You can measure it in dozens of ways. I like to ask was it a breathtaking performance, a beautiful art that told a story or was it the kind of call where you need to dig paper clips into the palms of your hands just to stay awake. Microsoft gave a latter type of call, like going to a movie where nothing happens. I find myself relating to the organic rice cakes i was snacking on while i tried to combat the Conference Call. Didnt work i slept like a baby on the kitchen floor. Then we had the disappointment the Company Behind flash memory chips that excited so many. Turns out the competition is ubiquitous as well a cheap stock . No. The house of pain. Actually more of a condo, at the same time we saw negative chatter. Inexpensive stocks that have been charming for so long. But are now looking for a value trap. Money managers demand at least some resident growth over punching the pins at atm, and withdraw their money, which is what happened all day today. Same thing happened when we heard the Korean Company was muscling in on business, it was the killing blow. The one that said okay that is it. Were done with that cheap vanilla cat that we loved so many in 2015. Today, hewlettpackard reported and frankly i was so disappointed in the whole affair. In fact i was visibly disenchanted after we interviewed ceo meg whitman. That picture tells a thousand negative words. They were darn near given the business hewlettpackard expands all portions of tech storage and printers. There was nothing positive that i can hang my hat on. One of the two companies will give you the best chip in the 3d printing game it is cool, even hot. The rest of the printing business is being turned over by the japanese. Hewlettpackard called it fierce competition. Fierce competition in the space. You know what i want . I want no competition in the space, which brings me back to what happens when Money Managers get disenchanted. They dont leave it entirely they should be free with the second area, the segment, in this case, taking the growth contingent and abandoning it. Gross value, and that is what they define todays trading, flash flooding not more but flash flooding into high growth tech. We see the wholesale switch, the expensive stocks of high growth companies. The companies have competition, let alone fierce competition. They dont represent a lot of value. We see them plow into none other than facebook and google. Remember them . And then a soaring sales force. Com, well speak to sales force. Coms Earnings Report im calling it the polar opposite of hewlettpackard. I was like hm for months facebook and google have been painful to own, that is unfair it has been a fabulous place to be witness the strength. Now, google deserves the program. Any Company Whose management feels compelled to say that unlike what many Money Managers think it actually cares about a stock price going higher. I find it a bit embarrassing. I have to care about when. That was the google call. Facebook reported a fast quarter, one thing annoying to me, the Facebook Stock typically moves around earnings. Its static if i want a static cleaner i will go by clorox. In the face of all the tech things on the wing the money dedicated to technology chooses high growth even if it has more risk. How do i know this . Putting up queries on social and facebook and twitter, you know what it means . It means that it is just a rotation. Of course, they didnt stop at google and facebook. Couple of days in pain over now in that palo alto of fire ice sector, the Gold Standard for cyber security. And they have been among the biggest winners lately we hear that the quarter is going to show a breakout. Netflix, binging this weekend. I dont know about you but i already have my plans, i often say you have to start to think outside the box. Today is one of those days were seeing growth rotations in more than just tech. I have been waiting for the stock in chipotle to come around, in many ways it belongs to the same sector as netflix. Starbucks, another expensive restaurant stocks breaking out, although unlike kind of like netflix and amazon. Who else trades in the growth sector, again, no news at all. The money is going into growth. I have to tell you, dont get too complacent about the longevity. We may see it reverse back to old tech. In light of the stellar force, the market is now declaring a new winner in the tug of war between the quote, value of today courtesy of the disappointment that was hewlettpackard. A reminder that a monster movement can still create a size and ship. One that very well could lift the fast growth tech laden nasdaq to alltime highs, perhaps as early as tomorrow. Dave . Yeah jim, on behalf of the windy city, thank you for taking my call. Not a problem. Jim, this may be several months away this is a topic in the news with the prospect of the feds raising Interest Rates in june or even early in 2016 shouldnt the prudent investor take property or Equity Holdings ahead of the first rate hike. Dave if youre a hedge fund manager, if you can get in and get out, that is right. And not drive your partners crazy, then i think yeah but if youre like the people who watch this show and youre like me that first one, you will get a quick drop down i am not going to get that in and out stuff. We are not hedge fund managers, we are longterm investors trying to find quality stocks that will not be affected if the Interest Rates go 2 that is my promise to you, were not going to shake you out and do what so many others are doing. Ed in arizona, ed . Hey jim, southwest airline was holding to its two earnings. This was about a 50 gain. When is a good time to get back in and would you prefer southwest or jetblue . My favorite is spirit and then southwest, i am not going to push it here right now. Right now there is an expectation that it goes to 40 41, if it doesnt, these numbers are going to go lets just say, wouldnt go up. The money is going to pour out of them. Lets not sweat the program. There is an exodus from the cheap program, growth is walking out of here as the winner tonight, because of sales force. Checking in with sales force later in the show, ill have more on my exclusive with mark pena. And the answer today, 5 on the great quarter, is this the paradise youre looking for . Why dont you sit with cramer. Dont miss a second of mad money, follow jimcramer on twitter, have a question tweet cramer, send jim an email to madmoney at cnbc. Com. Or give us a call. Miss something . Head to mad money. Cnbc. Com. Every now and then a company will report a quarter that turns out to be absolutely momentous, even if it doesnt seem that way at the time. Last year, they reported a very good quarter but the market turned from high growth and turned to value tech lo and behold, it reported a stunning quarter, spectacular. And i think its when you reignite the super Growth Stocks that fell so badly last time. The stock has managed to work its way back up to 62. 80s going into this interview. I think the quarter will put this stock right out of that range that has kept it down for so long as sales forces become the fastest Enterprise Software company hitting the 5 billion revenue mark. It wont take that long. Plus the company gave us robust guidance for this year. Hence, the stocks come roaring. Lets take a look at the founder, chairman and ceo, find out more mark welcome back to mad money. Jim, thank you for having me. All right, you blew it out on the revenue, on bookings im seeing you 17 better than consensus, is that what makes you feel confident to put out that you will be the fastest ever to get to 10 billion in sales . Jim, number one, we just finished an unbelievable fiscal year, 32 growth were the fastest of 5 billion for software, its unbelievable but jim, our guidance is next quarter were going to be the fastest at 6 billion, youre right, it is absolutely my dream, and im dedicated to be the fastest at 10 billion. Look at the amount that is already on the ballot sheet that is not yet billed. Its amazing. Yeah and i also looked at the geographical balance, most of the companies i deal with including the ones that you and i are close to hewlettpackard, everything was about the currency. I look at Constant Currency but even if i use real currency youre still in a very very high growth mode. Jim, we just gave this amazing guidance for next year over 6. 5 billion. That includes 2. 5 billion in foreign exchange, were going to blow right through it. It doesnt matter to us. There are some countries that people think forget your pan, do you see big contracts in japan . Jim our contacts are amazing, we moved into a building there called jp tower, the japanese government invited us into the Office Building were one of the largest customers in japan with an amazing ceo there. We just signed an incredible new transaction. Were absolutely thrilled with what is going on in japan. Your time spent in france looks like time well spent because the european numbers are much stronger than expected. The numbers are better than everybodys expectations jim. You can see some of our largest deals for the quarter came out of europe. Not just amazing deals in france, certainly we have some of those we have been dealing with schneider. Just take a look at the german transaction, abb, one of the Largest Industrial Companies in europe. A 40 billion company issuing a press release with their ceo saying that theyre going to change their Customer Experience with sales force. And this with sales force and microsoft partnering together to show what the power is of office 365 and sales force, one system and this is a game changer. I know when you talked about microsoft, people felt it was lip service. Obviously if you get abb, its more than lip service. Now, were delivering deals and able to go to market together. We of course had them at dream force, we released the product, built into sales force one. I just saw the new cloud integrated with xcel. Were able to deliver a combined solution, its breakthrough. And everybody knows, doesnt matter, that ge is the biggest competitor, does not bother anyone. General electric that is an unbelievable story for sales force, they just standardized on our new wave cloud. You saw a dream force, the ge capital, one of their most important units, saying this is a product that completely changed how theyre going into business. They want to be doing things where theyre really partners with their customers, not just bankers, and our products are helping them do it. Yesterdays Conference Call at home depot was a thing of beauty, and why, one of the reasons they say it is good to be bricks and mortars. 40 of the people using the internet site actually come in. When i look at what happened with home depot, the only thing that made it a game changer, you got together with them in order to develop Customer Relations management. It has been a big success story. Home depot gets it of course they have an unbelievable deal with the ceos, i think you know they have a very unique vision when it comes to brick and mortar. Its not about the website or the instore experience all the customer touch points working together and sales force has built that in concert with them and we have delivered a beautiful system for them so that those store employees, their contractors, which are a huge part of their business and their consumers can all share and collaborate on one business its a social business a social enterprise, and home depot has broken into an incredible new model for retail. You did great stuff with burburry, and in know theyre going with apple. Anything in the works there for apple stores because boy, it could be used. Youre at the forefront of all of these things im trying to figure out are there any retailers that are not i have to tell you the story with louis viton, who rolled out all their sales force. You will find the retailer will come up right away and know who you are, what youre doing, what is going on. And sales force is making that possible. That is called clienteling, we learned it at burberry and i have to tell you a huge transaction for cocacola was unbelievable of course we had the ceo for germany, how they transactions transformed, how they failed to retail. They want to make sure the right merchandising and layout on all the stores and that theyre marketing and handling the consumers correctly and building loyalty, all of that is possible on sales force, in sales and service and apps and in the analytics, in the combined customer Sales Platform makes it all possible. What does it run on jim . Well, it runs on this. You know i dont even travel with my laptop anymore, i can run in whole business on my phone. That is the way our customers do it as well. Youre the fourth ceo in the last four or five days i have seen or had dinner with and yes, they all took it on founder, chairman ceo of sales force. Com, congratulations sir on a great quarter. Thanks to see you. The last time this stock went up and down, i dont think that is going to happen again. During the sweet spot. Coming un why put your money under the mattress when you can invest in Companies Like la quinta an exclusive with both ceos. Finally got an explanation for one of the greatest problems of our era, how is it that people are spending so much money on housing yet so few homes are being built. How is that the they got a million unit flat lined half of what they were when the American Population was half its current size and still far below it was during the great depression. If housing prices are not rising much, then where the heck are all of these Building Materials going . The answer is that the bulk of the Home Building purchases, the materials and tools that go into it and the kitchen Bath Cabinets are just now coming onto the market and need refurbishing. That is thought of by the biggest home builder. She led a Conference Call earlier this week where it was very clear the company dramatically exceeded the expectations. Only one was wondering where it came from there were 3. 6 million homes added to the rental stock, 3. 6 million homes, undermaintained. As they move out of rental they badly need remodels. She then acknowledged work from a less rigorous source. Just kidding about the rigger but believe me i bet they were tickled to be invoked, saying 2015 was the first year since 2005 that the remodel dollars are up. Could it be some of that . Yes, end quote, makes sense, all the little stuff, the hand tools, the sinks, the lightening are selling, the professional numbers are bigger that is not translating into numbers being built. They delivered a better than expected quarter and deserves to be bought in the wake of todays pullback. The fabulous Home Builders big gains came not from a radical step up in the number of new homes being built but from the production of far fewer homes. Like the homes moving up steadily in price. A much more lucrative line than the 700,000 homes sold out in chicago. We know that the rentals that while some construction being started here its nonresidential. Putting it together it is pretty darn clear, there is plenty of construction going on in this country, its just that new construction, the kind that creates tens of thousands of new jobs, along with roads. Instead what were seeing is rehab, boring plain rehab construction that explains the bulge in home depots numbers. And rehab doesnt have the same effect really just about playing catchup. Finally, the mystery about how it is possible for retailers to sell home goods to be roaring at a time when were not pulling new homes. You have a bunch of home stock coming in on the market these are merely existing homes that people have been renting out for years and they need a heck of a lot more than just a coat of paint. The puzzle explains how we can have the boom without much in the way of building. Maybe that is why it is so sustainable. They would be in the cross hairs of the federal reserve. The strength and Building Materials is deliciously under the radar. And lasts a lot longer than anyone believes. You can still buy home depot and lowes even after these remarkable runs. Lets go to scott in georgia, scott . Booyah, jim, how are you . Thank you for taking my call. The stock im calling about, schnitzer steel, i just watched it for months it closed yesterday at a 52week Atlantic Ocean paying more for a 4 yield. There has been insider buying going on what do you think . Well im not a big fan of the Steel Companies other than new corp i think you did buy a fine one, im concerned the steel business like the iron and the copper just doesnt have the kind of numbers i like to see. Your company is profitable and i believe you will do okay. Just not one i recommend. Can we go to josh in montana . I was wondering what your opinion is on shw what is not to like sherwin williams, the only problem with it, they happen to compete with ppg. I would own sherwin. We all understand why we have a Building Supply boom without a new building. And maybe it is even more sustainable. Much more ahead, should your money stay with the stocks im taking it with the ceo, and today, rising on fabulous numbers despite a down grade later this evening. Time to get away with this one . I think maybe so. Plus your calls, rapid fire just ahead. Stick with cramer. Tomorrow, quick off the trading day with squawk on the street. I mean we sell beer that is like bringing candy into a movie theater. I didnt say anything. It all starts at 9 00 a. M. Eastern. Anything . No. You . No. Aflac what are you guys looking for . Claims legend has it these hills are full of em. It can take months for an Insurance Claim to surface. Claimin takes patience. Aflac paid my claim in one day. They got some newfangled kinda one day payin machine . Hehehehe yea, i got aflac at work. Aflac. In just one day, we approve and pay. One day pay, only from aflac. Aflac. I say look no further than la quinta a midterm select Service Hotel chain. 95 of the service in the u. S. As we have heard from so many traveling places, the lodging business here in america is booming. Regardless of what you hear about the strength of the dollar and travel to foreign places. The stock is running a lot less than other hotel chains even as they have less exposure to the u. S. Laquinta, today could be the day where the stock really starts to roar. Today, they reported a 5 basis with higher that expected revenues, a 4 increase in the revenue per available room. Occupancy room up 290 percentage basis points. The stock value is little more than 3 gain. So lets take a closer look with the president and ceo of la quinta. Welcome to mad money, good to see you. A lot of companies were public through the period. Only one made a lot of money. That was yours. It was priced correctly. These are good times for la quinta. It is we have an amazing brand, im very pleased. It is amazing how they keep asking about 30 of your business in texas, as all of that is in midland and odessa. Most of your business is doing better because of the result of gasoline. We view lower oil and lower gas prices as a net positive to our businesses. Again, we have segments of our business that are significantly larger than oil and gas, retail a bigger segment for oil and gas, we believe as the retail customers, consumers have more cash in their pocket and more disposable income, that translates into them traveling more, more Leisure Travel the segment is bigger than oil and gas. Our drive to market a significant portion of our business is drive. So we believe the Leisure Travel demand will improve, and were seeing it in florida and arizona as the peak travel season is under way there. We feel very good the lower oil and gas prices are one of our largest costs, operating wise is utilities. Very important. Labor and benefits is the number one cost and beyond that the next highest cost is utilities. So wayne, a lot of hotel chains are saturated in this country. When i look over the map at la kwf uintas you have a lot of room. You can put you have franchisees who clearly love you and are choosing you over other hotel chains. They want to take advantage of the fact you have more room . First a couple of things the relationship business we have a very Good Relationship with our partners. In 2013 and 2014, over 50 of our agreements have come from existing Franchise Partners. We also have an opportunity many of the markets that were not in today, the markets themselves are not saturated. Many of our biggest competitors are in those markets today. And in many cases in a big way, were still half the size of our biggest competitors. Its the reason i believe we have been the Fastest Growing select serve brand over the last ten years, according to data provided by smith travel research. I believe that based on the opportunities, continuing to go in the market tracks will continue to be the Fastest Growing. Our Franchise Partners see it in fact our existing pipeline 207 hotels, 70 of which is not in texas. That pipeline continues to include 29 new market tracks that were not in today. It is clear that you were passionate about your partners and shareholders. Now, there is no sin here to say that black stone has owned 45 , should the people who watch who are already in the stock wait until an opportunity of blackstones selling stock to get a better price because i know youre not selling stock you committed to not selling stock on the Conference Call. Is that a better opportunity and you cant control black stone, and whatever happens, happens. Theyre prudent, very smart. They will continue to protect their investment. Theyre not going to do anything that can i think that over time they will continue to sell down. They have to. Over time theyre going to continue to sell down the position. I dont think its something that something should wait for. I think that they will be prudent, but it doesnt have an impact on what were going last question what is with the towel thing . The guinness book of record towel what do you guys do . We focus on driving loyalty and engagement, doing it through different differention, and we do it by engaging people and having fun in each case weve done it weve given back to the nearest homeless initiative. The mattress domino in new orleans, the towels we gave to the military the fisher house in hawaii there is always a philanthropist angle as well. It is our way of giving back. Well its working, this is a great soon to be gigantic hotel, where you can be on the ground. Others are struggling. Theyre all worried about texas, i think dont mess with texas. Youre doing fine. It is time. And then, are you ready . Dave . In michigan. Jim, you gave me the scoop on the wireless im a skyworks guy, that is our name in that space. Lets go to paul in maryland, paul . Booyah, jim, i couldnt be better. Thank you for asking. 13. 25 we have had quite a ride many people many people criticize me for liking the stocks the whole way out. So im not going to double down after 15 i want you to hold onto the stock, luke in tennessee . Booyah, mr. Cramer i was watching the show with my pops. We trade and we invest we trade and invest. What do you think about spansion. Good yield, great match, marco . Hello, mr. Cramer thank you for taking my call. Not a problem. I learned a lot about stocks on your show. I want to learn your opinion about taiwan semiconductor. Its really just a juggernaught, lets go to mason in maryland. Cramer i got a ravens terps, and oilers booyah for you. Where is my ravens super bowl mccormick spices i usually have here, what is going on . I prefer mccormick spice to it. When i got stocks when i got things like regeneron, im not going to go down to that t theravan. Okay patricia in tennessee . How are you, mr. Cramer im a new listener and a firsttime caller, i have a question in regards to alibaba. I purchased it the first week it went public purchasing it around the mid80s or high 80s and it went to a high of 120, and of course now, it started to drop back to mid80s. My question for you and your thoughts is, do i buy more sell or hold okay remember we like yahoo it is going to be terrific. I think alibaba had its first day up. He said listen it has all of this level, did all of this level. I think the higher marks, high growth not buy anymore alibaba. Hey, jim, ron from oceanside. It got hammered the last couple of days i mean you cant disappoint twice and then expect me to give you the high side were going with the skyworks. Hey, by the way, lets go to chris in illinois. Chris . Booyah, jim, thank you for taking my call i bought this at 1727, and the recommendation of you and my broker but it has fallen a bit, around 15 15. 5. My stock is alcoa. We liked it at ten, 15 well like it at 20 the price has not been great this quarter. I dont know sometimes you believe in a ceo, sometimes they take the stock higher that is how i feel. And that ladies and gentlemen, is the conclusion of the lightning round the lightning round is sponsored by tgameritrade. You have to wonder if home away the largest Vacation Rentals, has its groove back. Im a big fan of home away the website and now i like home away the company. Still over the last month they began to start to rebound, and sure enough, when home away reported last month, the company and 16 cents a share, when wall street was expecting them to break even the revenue was 20 year over year and 22 , an acceleration from the Previous Year it is true that home aways guidance usually seems a bit light, but when you back out of the damage the forecast was pretty strong hence the 5. 6 gain the company shares. A huge move today. Lets check in with the cofounder, find out more about the company. Mr. Sharples welcome back to mad money. Thank you for having me jim, always a pleasure. Im trying to figure out if it was the people in the world traveling again, some of them are Getting Better brand awareness, some of it the tenth anniversary, this is the quarter it would start the reacceleration in the companys earnings, isnt it . That is what were planning on for sure as you pointed out we just finished our tenth year when youre ten years old, you spend a lot of time looking to the next ten, the markets move very quick, so were coming out with a vengeance, the business is doing very well. Can you explain the value ive used the site i know the value proposition. People say upon how you can save money and have a better experience by getting a home for a family. This is not necessarily a kid. Its a family seeking a home experience. Walk us through, this new ad campaign everybody is going to see it maybe give us a little preview. Yeah, weve gotten pretty literal about what we do in the campaign. It talks about first of all were in the business of providing whole houses to people when theyre on vacation you have a kitchen, a living room. The whole Family Concept is why should you leave people behind . People have big extended families, we live in the era of a modern family. People like to travel with friends. I know my kids like to have other kids go on vacation when you rent a house you have the opportunity. Well start to highlight that in our advertising. We believe this Group Family Category is very very big. Can you contrast your business say with the marriott vacations, doing quite well, with wyndham and star board last week announcing they want to be in this business. How is your business different from those . Its not, its a very hot category. In fact we List Properties from those providers that you just mentioned. I think a lot of companies do provide two and three bedroom condos with kitchens and allow people to sit around in the living room. I think the big difference is what you mentioned from other companies, pretty institutional, Hotel Buildings with vacations. A lot of what you find in home away, true individual houses and ski houses that are second homes that people put up for rent. I know the comparisons were made, there was a piece air bb has this ridiculous valuation, i am not asking you to disparage their evaluation but there is overlapse in the business. If you worked to compared them one is profitable the other seems a little bit more pie in the sky to me. When you get asked the question you know why arent you air b b, what do you tell people . I think right now were showing this in our campaign we decided the best bet for us is to be a better version of ourselves and focus on what we do well. We think the vacation category which is the high end of the market, the family segment is just a better business. We dont want to be charging into their space and be a worst version of them. Were not going to get into their rooms business the low rent partner business. Theyre different right now. I think the businesses are converging a little bit, for example, well move into the cities more. They demonstrated a lot of people take vacations. I think they want to move in the Vacation Rentals a bit, as well. There are higher room rates and prices. Maybe that is the way that they can make more of a profit in the future. At least today, theyre pretty different. Our campaign is going to start appointing it out to people, so far it is pretty effective. I like this choice the description model, somebody who has places that you always want to rent them that is fine. The pay per model is intriguing right . Its intriguing listen our subscription customers get a great deal our average customer makes about 28,000 a year for entry subdescription prices of only 50 a year what we find having a paper booking model which is essentially zero dollars to come on the site and pay a commission is really attractive to people who have never been in the category. You know you have almost 20 million vacation homes in the u. S. And europe today. About a third of people that represent them today, we would love them to have these types of rental services. So having a free option gets people involved in the category that will be great for everybody including the consumer. The fact youre up to 5 is a very good prelude. Thank you very much for coming on the show sir. Thank you. Get the 5 gains, not a sign its over. It took a longterm play. I really like it. Stick with cramer. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts mean your peace of mind. Now you can get the works, a multipoint inspection with a Synthetic Blend Oil change tire rotation, Brake Inspection and more. 29. 95 or less. This time there is a big move into high growth and crm is going to lead it i think its going to be real. Im going to try to find it right here for you on mad money. Im jim cramer, and ill see you tomorrow. Tonight on the car chasers. Ive got a shot at a classic corvette worthy of its whole transformation. I dont think theres anything that would keep you from buying this car. Money. If i can work a deal with the savvy seller. How about 13 grand . This is kind of like ping pong. Its my ball, its my game. Meg and i take a trip to a jurassicsize car museum. How many cars are here . 550. But when it comes down to business, im not sure if this owners anymore more than a billionaire tour guide. Weve digressed from Neiman Marcus to kmart. [ laughs ] im jeff allen, and i buy fix, and flip cars. Along with meg, my partner in crime, and eric, our mad scientist, were flat 12 gallery. My main competition is still my dad, the toughest negotiator i know