Points today. Its seventh consecutive decline. S p sank. 6 . Strong dollar and Lower Oil Prices are once again wreaking havoc on the stock market. Just like it did earlier this year. Until we got that nice respite in july, a respite that sadly now seems over. So how the heck did we end up back in this ugly situation . What are we supposed to do about it . Why dont we start with the key culprit . Oil. Oil declined 20 from its recent highs which qualifies as a bear market. Whatever thats worth. Its remarkable how little investors seem to care as oil plunged from 50 down to 40. The whole market moved higher. Often led by none other than the oil themselves. This paradoxical action culminated in oil crashing down to 41 last friday. The same time many oils as well as the broader s p 500 moved higher. But as of this week, that decoupling, it no longer seems to be the case and as oil blew through today, most of the market rolled over including glaringly many industrials, technology and consumer stocks. Why are those stocks linked to the price of oil again . Because as i mentioned last night, theres a growing belief that the autos, which had very weak Sales Numbers today, are signaling a slowdown in the domestic economy. And the Weak Oil Market is signaling the same thing. This is the demand story i keep telling you about. That there just isnt enough demand out there or oil would be going up, not down. Today, the weakness theory was buttressed by the action not just in the autos but in ablidration of the Airline Stocks. We have to dig deeper, dive into this situation, understand exactly whats going on because frankly were getting some very strange cross currents out there. And i want you to know them. Why dont we start with the bear case . To the bears, oils is going down because not enough is being used which is theoretically what happens in a slowdown. The cruise lines are down because there isnt demand for tickets. Royal caribbean, it reported this morning, it wouldnt be sunk 6 if it wasnt for consumerled weakness because it happens to be a very strong operator. Same goes for the airlines. Theyre all being clubbed. Again, if youre a skeptic, you have to believe its related to the demand side. American which gave up 5. 87 , delta declined 7. 83 . Southwest down 4 . United continental which lost 6. 6. 25 , they dont fall this hard if theres steady demand for seats, right . So given that empirical evidence, should we conclude the economy is weak and its time to start dumping stocks . Not so fast. Lets look at the situation through a less skeptical prism just for a moment. Turn the stories on their heads simply as an exercise in critical thinking. First, oil. We learned from rbn energy, the newsletter i read to get the skinny on oil thats been uncannily correct that in the last few weeks the flow of crude from the Canadian Oil Sands which hazstaunched by the wildfires has come back with a vengeance. All million are back in play. Oil prices have been artificially elevated, not increased demand, not by increased demand but by a lack of supply caused by the conflagration. The addition of the new canadian Million Barrels a day is overwhelming the market, not lack of demand. Driving this summer shows a pickup in gasoline use. Pure demand. That gets in the way of the story but its just the fact and were stuck with them although well dive deeper into the Oil Conundrum later in the show. Royal caribbean that i mentioned earlier, the stock got wrecked today. Why . Not anything the company said other than currency, strong dollar and slower Chinese Market and maybe higher fuel costs. Now, of course, with oil well below where it was when the quarter closed, the negative fuel case, its diminished. The dollar, it is a problem. Ever since the brexit vote, the dollar has been getting stronger. Ive been uncomfortable about that fact. I think the markets been ign e ignoring it. I dont like whats happening to the dollar. Its a real negative for certain. I totally get why people would be concerned if the pace of the dollar rally continues. Lets be candid. When richard faine, ceo of Royal Caribbean came on cnbc this afternoon, what was he asked about multiple times . The zika virus. With the cases in miami being Headline News and cruises emanating from miami, thats the journalistic focal point. The company said on its conference calm al and cnbc cfo described north american demand unwavering, said there are, i quote again, solid trends in our caribbean portfolio, end quote, where the winter bookings are, again, quote, in a very strong position. Now, the analysts on the call took all that positive news as gospel. There were no questions about zika at all in the call but the zeitgeist around the stock is about zika. I would add the entire decline in the airlines and travel and leisure, the spread of zika and the apparent inability to control it, bookings in the future will be canceled. Its not farfetched. You cant deny the concept. During the ebola scare two years ago, we saw a huge decline in the Airline Stocks without anything really ever happening to their actual fundamentals. I dont care if the Royal Caribbean analysts arent interested in the zika viral. The journalists are dead right to ask. How can they not considering how top of mind it is . We can argue its not the demand side. Remember, exercising critical thinking. Its not the demand side drying up. Its the supply side expanding because the canadian tar sands. Argue its not the demand side of the airlines or cruise ships but its zika. So, to take our cue on the consumer for either would be wrong. Wheres it leave us . Once again, in a rational world, you think oil going down is helpful. We should feel better about the state of the economy if the transports are going down because of the zika virus, not lack of consumer buying power. At the same time, if the stock market is linked tightly to oil prices, were going to have to accept the markets judgment is going to it difficult here even if it isnt necessarily based in fact. As long as its in command and control, we need to learn to live with it again. Break out the january to june aybook. So whats the next domino to fall if oil keeps going lower . It will be the banks. When the banks reported a month ago, oil was at 50. Looked like it was going 60. Remember that . People are starting to worry about how the banks are on the hook to the Oil Companies just like they did earlier this year. Again, because im less bearish than most on oil, i dont really think this concern merits you selling everything, but i dont think it deserves that, but like clint says in unforgiven, deserve has nothing to do with it so you need to be prepared for the major blananks to come n off this oil story. Many of the Oil Companies refinanced by issuing equity, banks have been able to sell bad loans. Could see more weakness in technology. Some bad numbers after the close today. And the industrials as investors ponder how deep the socalled slowdown that theyve manufactured in their minds seems to be. Remember, perception always trumps reality when it comes to stocks. At least initially. Sooner or later, though, well settle into a factbased situation where we can try to make money off of whats actually happening, not the bogus nightmare scenarios that are so easily traced out and believe me, i can do on this show, i could do without a problem. Let me give you the bottom line here. Brace yourselves for those continued worries about declining demand. Even as i suspect its really the supply side and the zika virus and its fears that are really driving the bus. Richard in new york. Richard . Caller hey, jim, its richard from new york. I enjoy watching your show. Thank you. Caller i have a question about paypal holdings. Last week, they came out with their earnings. They actually had a pretty good quarter. They met the estimates on their earnings per share. They beat revenue. They announced that theyre going to increase their revenue through the year and they announced a Strategic Partnership with visa. So everything seemed to be pretty positive. And the next day the stock dumped 10 . Right. Richard, my charitable trust, we september out a bulletin saying to sell the stock. We couldnt because, of course, were frozen. The thing that worried us, once you got that deal with visa, maybe that was the upside taken away and there was also a sense that maybe some of the rate of growth has slowed. I always welcome management to come in and clarify the situation, but were not jumping up and down telling you to buy here. Even though i think it can go lower, it had been the subject of something that jack moore, Research Director and i were talking about the whole day but not yet. Not yet. Paypal can still go a little lower. Otto in florida. Otto . Caller hey, jim. Thanks a lot for you and all your staff for all the hard work you do to keep us informed. Thank you. Caller big booboobooyah from ft. Lauderdale. Good to have you. Reporter gopro, with christmas around the corner, the new camera coming out, where does gopro go and where is the future at . This is important. I think gopro can go a trade to go higher. I think it can be a trade, not more than that because youre playing it for seasonal basis because they do have a hotter camera thats out there. Not an investment. And i think when we have to we have to really understand the difference so nobody says im backing up the truck gopro. Im certainly not saying that. All right. Anyway, theyre back. The dollar. Oil. Even zika are top of mind on wall street. And these concerns could make for a bumpy ride. Oil prices settled at a fourmonth low today. Last week the world bank raised the food price forecast. Where is this commodity actually headed . Im going to dust off the charts to find out. Ford is down 13 over the last 5 days because of a worry of a slowdown. Is the drop worth it . Ill give you my tame. Zillow, Kimberly Clark connect their businesses. Could it help your portfolio as well . Im sitting down with the ceo of one of the hottest stocks out there, servicenow. Find out what it has to offer. 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. You tell your Insurance Company they made a mistake. The check they sent isnt enough to replace your totaled new car. The guy says they didnt make the mistake. You made the mistake. I beg your pardon . He says, you should have chosen fullcar replacement. Excuse me . Let me be frank, he says. You picked the wrong insurance plan. No, i picked the wrong Insurance Company. With Liberty Mutual new car replacement™, well replace the full value of your car plus depreciation. Call and if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call Liberty Mutual for a free quote today at thats liberty stands with you™. Liberty mutual insurance. Keeping the power lines clear,my job to protect public safety, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. This is our community, this is where we live. We need to make sure that we have a beautiful place for our children to live. Together, were building a better california. Price of oil has been sinking for the past few weeks, yet until recently as we said at the top of the show, this pullback in crude barely had any effect what stovr on the strength of the stock market which is amazing when you consider earlier this year the averages were pretty much joined at the hip with the action in oil. West texas crude broke down below the key 40 level today and the stock market finally took a real hit. Tonight i want to go off the charts with the help of carly grarner, cofounder of the carly trading as well as being my colleague at realmoney. Com and the author of a new book with the higher probability commodity trading. Came out just last month. Garners our resident oil expert. Shes been very right. We got to know her thoughts about the selloff of crude. I got to tell you, you may not like what youre about to hear. So far, garner says the oil has been fairly orderly which is why the markets have been able to ignore it she thinks. However, as the price of crude drifts lower, she expects the weak energy bulls to get washed out crushing oil, thats right, crushing it and sending the stock market lower right along with it. Remember, this garners view. Garner believes the oil market has to get worse before it can get better and shes got a number of compelling reasons. First and foremost, the price of crude is subject to pretty strong seasonal patterns. Garner says oil has a tendency to trade down through early august. Further, going into the end of the year, the most common pattern is for oil to trade sideways, go slightly lower. While crude might get a boost from potential supply disruptions and could be helped by rising demand, the simple fact is the seasonality issue will still be on the side of the bears for quite some time. More important, though, is the makeup of exactly who owns oil futures right now. Thats why we need to take a look the a that this weekly chae west texas crude. With the results of the Commodity Futures Trading Commission commitment of traders report on the bottom, the sca socalled c. O. T. Report. This is a great tool when were talking about commodities. Every week the cftc measures the net long or net short positions of all the large speculators meaning big institutional Money Managers as well as smaller speculators and companies actually buying and selling oil futures for legitimate hedging purposes. Its the large speculator cohort that we care about because theyre the ones who are really driving the action here. When the price of oil peaked back in june, garner points out that these large speculators amassed a netlong position of 300, nearly 370 futures contracts. 370,000. Put that in perspective, this was the biggest bullish bet by socalled smart money since before the oil collapse back in mid 2014 when a barrel of crude was still worth more than 100. In other words, at the top, everybody was long. As garner has told us repeatedly, whenever the big boys get carried away like this, its only a matter of time before they get carried out. We get a nasty selloff. All these Money Managers who are betting on oil going higher are forced to liquidate. Thats because when everybodys long oil or anything for that matter, it means theres no one left to buy. Since the high in early june, the price of crude has declined by more than 20 . Remember, bear market. Garner says thats the result of liquidation. Even after all the selling, this is whats amazing to me. The large speculated group has only decreased their holdings by 17 . Meaning theyre still net long on oil by about 273,000 futures contracts. Thats why garner thinks the liquidation is far from finished and could be even more painful ahead. Ever since oil prices peaked two years ago, crude tends to bottom when the netlong position drops to the neighborhood of 200,000 futures. Its 270,000 right now. Then we could get a bottom. If thats where were headed, garner believes it is, she expects oil to fall to the mid 30s. Consider the daily chart now of west texas. Given that this oscillator which measures whether securities got an overbought or oversold, has reached seriously oversold territory. You might think that oil is zdu for a balance. Same goes for the relative strength. Rsi. Another important gauge of momentum. Rsi all the way down. However, in this case, garner thinks these indicators may have gotten ahead of themselveses. Sure, she says its possible we get an oversold bounce that briefly sends oil back up to its highest 45 bucks but she thinks its more likely oil will keep trickling downward until the big boys finish the liquidation we just mentioned. Any Short Covering rallies are likely to be short lived and garner believes the speed of it could accelerate. She points out bottoms in oil are rarely quiet. They tend to involve dramatic and painful declines that flush out the weak bulls before a rally finally emerges. Unfortunately, garner says were yet to see a real washout and until that happen, she doesnt think we can bottom. Based on this chart, she can see oil dropping to 38. 50, a buck below where its currently trading or as low as 32. 50 if things get really out of hand. However, garner thinks the most likely scenario is oil will get bushed down near its floor of support, the 34. 50, and if it holds there she believes thats when crude could start to rebound. However, once that wipeout happens, garner says oil can start moving higher again. So take a gander at the weekly chart. This is a little daunting here. Similar to what we saw in the daily, this longterm chart also subjects oil will find some port at 35. Thats where we found our footing when oil briefly sold off in april. After we bottomed there, it managed to rally all the way back to 50. That said, if oil breaks down below 35, heres the nightmare snar wroe. Garner says its going to get real ugly, just nasty. In fact, below 35, there wouldnt be much support, we sink down to the, get this, back to the 20s. Near the february lows. And if oil somehow doesnt hold above 25, traders would start eyeing, i cant even mention okay. 15 is the next logical floor. However, garner doesnt expect things to get that brutal. She thinks its more likely the weak candid bulls will get shaken out as oil goes to 35. The sticastic operator in the rsi will move into oversold territory and on the weekly chart, more important than the daily, remember, we had the daily before. Weekly is not oversold as much. Then things can turn around. Once the big boyce are finished liquida liquidating, that will allow the price of oil to move higher. Garner won be surprised if it heads back to remember, a weak green back sends oil higher. Put it all together, while garner thinks oil is headed higher from these levels, shes not totally bearish. She thinks you should prepare for what could be a terrific buying opportunity in the mid 30s. 35, 34 level before we bounce back. The charts as interpreted by carly garner suggests the selloff in oil is far from finished. She thinks it could drift down about 4, 5 bucks before the pain comes to an end because theres still so many Money Managers out of position and need to sell. Once this socalled smart money gets wiped out, garner thinks oil can start rallying again which would be a welcome sign for this market. First, we need to brace ourselves for more damage. All right. Much more mad money ahead. Where have all the customers gone . Thats what the ceo of texas roadhouse is asking himself after todays big drop. Im telling you what to make of that latest quarter. Is now the time for servicenow . Im sitting down with the cfo to see if the latest results kick started a true turnaround. And a way to play the biotech space without taking your chances with fda approvals . Sounds too great to be true, right . Wrong. Ill reveal the company just ahead, so stick with cramer. Whats better than mad money . How about more mad money . Follow mad money on facebook, twitter and instagram to go oneonone with cramer. Reaction. What other questions do we have . Ah. I always tell people you got to start with an index fund because i need you to be diversified. Get more with guests. How do you stay sure . And go behind the scenes with the most interactive show on television. If you cant explain in three bullets why youre buying a certain stock, dont buy. Follow mad money today. Gain the freedom to fumble with the new water and shatterresistant Samsung Galaxy s7 active. Exclusively at at t. When you cook with incredible thingredients. Ato. You make incredible meals. Fresh ingredients, stepbystep recipies, delivered to your door for less than 9 a meal. Get 30 off your first delivery blueapron. Com cook. What were seeing in the marketplace, were going to have a strong year. Weve said that. But were starting to see some things in the marketplace that we havent anticipated last year or even the first quarter. Listen, were still going to have a strong year but as usual, well provide updated guidance at our Second Quarter earnings call. News flash. When the ceo of a Major Company says the environment has gotten tougher, he means it. Hes not just making small talk. I mentioned this because on our show back on june 23rd as you just saw, then last week, mark fields, ceo of ford motor, told you that things are getting tough in this industry. Today, fords monthly Sales Numbers came out and they showed a drop of 3 when the group of insane dimwhited analysts called consensus thought theyd be down only a half a per sense. So the stock got hit plunging more than 4 on the news. This to me is where i find the obvious nature of investing so unnerving. What the heck did people think was going to happen here . That the numbers were going to miraculously recover after fields said things are not to hot on his Conference Call . Come on. When the ceo tells you things are weak, believe me, he has a read on how his Current Quarter is going. To think that fields didnt have the july numbers in front of him when he lowered the boom last week is to think ford eps track of its sales using an abicus hidden in some utility closet where management will never find it. Gms numbers werent so hot, either. Fields made it clear the downturn was industry wide, just didnt impact ford. I took the words of fields to be Crystal Clear, Crystal Clear shortterm signal. Sell, sell, sell. To sell the automakers for the moment unless you can tolerate the pain and pocket the bountiful dividends while you wait. That kind of extrapolation can be different depending upon the industry. So lets take for a moment the restaurant sector. You can have good and bad performances within this particular industry. We just heard, for example, that panera bread had a fabulous quarter. Companys been remodeling its stores and giving its sales a nice boost. Panera 2. 0 its called. Last night, texas roadhouse told us their business has been softer calling it, i quote, a bit of a slowdown. That freaked people out because lately texas roadhouse has been one of the hottest restaurant chains around. Before todays hideous 5. T90 selloff, the stock had rallied. The problem here, tough to diagnose. I guess you could say theres a problem with the problem because management doesnt know why things are weak which is exactly akin to what target said during its challenging april and may. And like target, which saw its stock plummet a similar amount during that period, the lack of an answer, i find it never reassuring which is why the stock of texas roadhouse got hammered for a 12 decline in one session. Now, i have to admit i was a little more than astonished when i listened to that Conference Call of texas roadhouse and i caught this bit of candor from the very able cfo, scott calosi, because it put the sales short fall in stark perspective. He said, i quote, i think anything about why as an industry or anybody specifically why sales might be tailing off. I think is speculation. Everything from is it related to there being a big shooting on tv every other day, the conventions, to the next thing well be talking about, the olympics in rio which start next week. In other words, the guys of texas roadhouse cant figure it out, why did people stop going as much . What happened . That kind of environment, we cant be sure how to forecast anything unless, of course, we just heard like in the case of panera that things are good. But just like with ford, if the company just told you things are good, theres no reason to doubt anything has changed in a few da days time. Macys got whacked for 2. 56 hit today on nothing new other than rumors of punk sales. When the best operators are arent sure what the story is, you have to be careful. When its good, what do you do . You use the weakness of the other guy to buy the one that just gave you the buy sign. In other words, as panera goes down, right off of texas roadhouse, i guess you could say as part of the pin action of the decline, i think you slowly do some buying. Cant do any other way with panera because its a wild trader. On the behalf of the auto, when gm confirms fords weakness as it did today, i suggest you stay away altogether. Gloria in new jersey. Gloria . Caller Harley Davidson. Im a longtime investor who fell in love with this stock. I would like your thoughts and opinions as to where the stock is going. Okay. First, i will tell you these are just pieces of paper. We can never fall in love with them. Thats all they are. Nothing more than that. You may like it, but were doing a piece for the show on a downgrade and upgrade of Harley Davidson the same day and will give you more insight of which way you want to go than anything i can say at this very moment because weve not done our work. Retail and restaurants have proven to be a total minefield, but if youre up on the homework, it can help you spot opportunities because not all companies are alike. Much more mad money ahead. The last time we sat down with servicenow, the company was down 20 . Can they pull themselves out of the technologywide selloff we saw this year . The health care sector, what if theres a creative way to play the sector with a little bit of yield . Im eyeing one stock, with the features of some o the plays that have thrived in todays market. Youre in the going to want to miss it. All your calls rapid fire in tonights edition of the lightning round. So stick with cramer. Its time for the your business entrepreneur of the week. John grew up in his parents Grocery Store but with competition from the big chains, old World Grocery could no longer compete. So now they dont. They focus on one thing only. Soda. They sell more than 750 kinds. Youre late for work. You grab your 10gallon jug of coffee and back out of the garage. Right into your wifes car. With your wife watching. She forgives you. Eventually. Your Insurance Company, not so much. They say you only have their basic policy. Dont basic policies cover basic accidents . Of course, they say. As long as you pay extra for it. With a Liberty Mutual base policy, new car replacement™ comes standard. And for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Learn more by calling at Liberty Mutual, every policy is personal, with coverage and deductibles customized just for you, which is why we dont offer any offtheshelf policies. Switch to Liberty Mutual and you could save up to 509. Call Liberty Mutual for a free quote today at liberty stands with you™. Liberty mutual insurance. When the whole market gets slammed like we saw today, that can create buying opportunities, stocks of companies we know are actually doing quite well because they recently reported. Take servicenow that helps Corporate Information Technology Departments fill internal applications, providing Enterprise Software that can manage and automat various functions in a given companys human resources, legal, finance, security fields, also facilities management, marketing departments. Many other tech stocks, servicenow got hammered today. Plunged 1. 84. No real news. Thats important because it means much of the stocks move that it put on after a report of fabulous quarter has been era erased. The stock is up 8. 3 since we spoke to the ceo roughly three months ago, its still down. Hasnt fully recovered from the dropping the highflying Cloud Computing stocks that happened in january and february. Last week servicenow reported a terrific 5 cents earnings beat off a 10 cent basis, higher than expected revenue up 38 year ror over yoear, a 45 gain in subscription revenue which is really crucial. Its what i use to gauge things. On top of that, the company gave a stronger than expected forecast for next quarter. In short, we know servicenow is doing well. Thats that makes this kind of stock the maybe one you want to buy into the weakness, but it wont prevent servicenow from going lower in the whole market and tech in particular continue to get crushed. Lets take a closer look with frank slootman, president and ceo of servicenow. Mr. Slootman, welcome back to mad money. Good to be with you, jim. You added, last time we saw you, had 249 customers paying more than 1 million. Give us a sense of who youre adding and how youre able to do so many in such a short period of time. Yeah, thats actually a very key metric that we report every quarter, jim, and the reason is we laid out that 4 billion Revenue Target for 2020. This gives our investor audience an opportunity to monitor our progress because our entire investor thesis really inches on us reaching that number and then you apply a reasonable multiple on that and can figure out what you got to look forward to in terms of stock price. Well, know that thats kind of what salesforce taught us. I know theres a tit for tat comment. You dont go tit for tat with salesforce. I used to say, wait a second, you already have you are in a huge percentage, 272 customers paying you more than 1 million. You landed 26 new global 2000. Got 30 of the global 2000. What makes you think you can get more than that . Thats a lot already. It is a lot already, but, you know, you look at how far along we are in europe and asia. By the way, a third of those logos actually came out of asia pacific this quarter where were still underpenetrated. We view it as having a ton of opportunity out there. Okay. I was looking at some of your customers. I always try to make it come alive. We talked about zillow last time. I say deagio used you to make sure they Service Customers right. Im a big customer of deaggio because of don julio, huge seller of don helio tequila. What makes it so im a more seamless customer for don julio . Yeah, so for deaggio, this goes back a couple years, we did a massive companywide i. T. Transformation with them. Theyre very typical for the type of projects that we do for Large Consumer goods enterprises. 30,000 employees. 180 countries. Its a complete reset on how theyre running i. T. And how i. T. Is consumed as a service by older employees in all those countries. Theoretically, someone might have been doing something by phone or email to another email, to a server, back to an email. This is more streamlined. They know what a customer wants ahead of it . Externalizing the server experience, people can access from their devices in a high degree of automated precisioning. I. T. Has an opportunity to suppress the cost base around providing those services. Last time you were on we talked about i asked a question about whether you were competing against work day, you said, i quote, many of our customers Deploy Service yn now and workday, very good value added. I should have asked you a follow up, but i ran out of time. Workday manages the records of human we tend to manage the work of human resources. That same stymied me. Whats the difference between the work and records . The work of hr really relates to all the employees coming to hr on a daily basis and having issues with a move or a pay raise or a problem with their paycheck. Theres a huge workload that comes into hr departments, just people needing information and needing help. That doesnt have a whole lot to do with managing the records of hr. I mean, a new employee hires on, we need to create a record and an accurate definition of that employee in the system, you know, for compliance purposes, for payroll purposes and so on. We dont do that. Thats what workday does. The workload of hr on a daytoday basis in terms of serving the employees of the enterprise or institution, that ends up on our doorstep. All right. Im glad i got that cleared up. Now, oppenheimer, i picked one of those Great Research firms. They got a market they said something, i didnt see this when i read through the quarter. Maybe im looking at it now. They say theres renewal slippage and slowing in north American Group and sign of moderating beat and raise magnitude, we talked about beat and raise, how important it is. I didnt see those. Am i not looking in the right spot . No, im not sure what theyre talking about. It was a very strong quarter. There was, indeed, there was about 6 million of billings that jumped from june 30th to july 1st. These things happen. You know, sometimes purchasing departments run out of time. Those things are completely anomalous because they close almost immediately in the next quarter so thats just pure noise. Sometimes people are just too focused, you know, looking for inflections on a very shortterm basis where they have really no bearing on the longerterm investment thesis. We pointed that out during all the callbacks and i think investors mostly got past that. Last question, i used med ri metric of how many new customers. Young companies doing what youre doing, operating cash flow, cash flow, it looked very positive which it didnt have to be, rather than using the earnings or using the nongap earnings, is cash flow being positive, is that something you want to maintain the whole time you get toward your 2020 projection . Absolutely. Weve given very specific guidance. Not so much to operating cash flow but Free Cash Flow which for us is a much more important metric. Servicenow is a very unique combination of scale, growth, and cash flow, and i think that really sets us apart from the pack. Excellent. Frank slootman president and ceo of servicenow has the highest growth of all the companies that come on the show. Thank you so much, sir. Thanks, jim. You want high growth, okay, in the cloud, this company has it. If you dont, well, you know what, we got stocks like microsoft, we got stocks like hp. We can choose whats right for you. Mad money is back after the break. Can a toothpaste do everything well . This clean was like pow. It felt like i had just gone to the dentist. It just kind of like, wiped everything clean. My teeth are glowing. They are so white. Crest [hd]. 6x cleaning, 6x whitening. And at two weeks superior sensitivity relief to the leading sensitivity toothpaste. I actually really like the two steps crest [hd]. Step 1 cleans, step 2 whitens. Its the whole package. No ones done this. Crest healthy, beautiful smiles for life. Announcer lightning round is sponsored by Td Ameritrade. It is time. Its time for the lightning round. You say the name of the stock. Buy, buy, buy. Sell, sell, sell. Ring the bell then the lightning is over. Are you ready, skeedaddy . Time for the lightning round. Cramers mad money. Joe in new jersey. Joe . Caller hello, cramer. Joe. Caller yes, thanks for all your great advice, all that you do for us. Thank you. Caller my stock is five below. All right. Five below is like Dollar General and dollar tree and tjx. I think its moved too far. I want to say a little profit taking, five below didnt hurt anybody. Martin in south carolina. Martin . Caller hey, jim. Thanks for taking my call. From a valuation standpoint, can you talk to me about pkx, posco . Look, i know, engineering, construction, steel, i say stay away. If you want to own a company in this segment, you must own newcorp. How about douglas in california . Douglas . Caller thank you. I bought 25 years of twilio at 24. Should i get some more . No. Theyre going to report august 8th. Lets see what happens. This is a play of a lot of growth we see in airbnb, facebook app. Lets hold off this close in the quarter. Lets go to bob in alabama. Bob . Caller hey, jim, love your show. Thank you. Caller western digital. Ive got it. It hasnt dropped to where im at. I dont know. Its such a commodity play. I mean, if you want to be [ buzzer ] im always, look at seagate, went all the way up and all the way down. I mean, if you want to be in a commodity play, i prefer you to actually be in intel where i think you got the yield, good Balance Sheet and management that is concentrated on making money. Angel in connecticut. Angel . Caller booyah, jim. Thanks for taking my call. Of course. Caller my stock is cypress. I think fundamentally and a lot of consolidation happening in this space. So cypress is a keeper. That, ladies and gentlemen, is the conclusion of the lightning round. Announcer the lightning round is sponsored by Td Ameritrade. N take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade Health Care Space has been out of favor now for about a year. Ever since washington declared war on higher drug prices and the once mighty pharmaceutical started to collapse. Investors have been avoiding biotechs, trade on the pipeline prospects, not earnings or dividends which is what this market really likes, it craves. What if there was a creative way to play a Health Care Space, a company that benefits from the work being done in the biopharma industry in general and science to be a little bit more broad, that has the characteristics beloved by the stock market in namely a strong dividend yield. Im talking about alexandria real estate, are. It specializes in earning science and technology facilities. Here were talking about san francisco, new york, boston, Research Triangle park in north carolina. The idea san diego, too, i should mention. The idea is life science and Technology Companies tend to cluster in certain areas typically near major universities or, for example, you cant drive for ten minutes in cambridge, massachusetts, without going past the headquarters of a biotech company. If you read todays the new york times, you might have noticed piece and how huge corporations are moving from suburbs to major cities to attract the best talent. Alexandria invested in gorgeous properties in the research clusters. Last month they shelled out 725 million for one care complex near m. I. T. , where a number of smaller biotech firms apply their trade. A solid business lately. Supports a 3 yield. Stock up 20 year to date. That said, the Company Reported just last night and while they delivered inline funds from operations, higher than expected revenue up. 10. 7 year over year, stock still got hit. I think the weakness has to do less with the quarter, more to do with the fact the stock ran up mightily and doomed to sell off no matter how good it reported. The joel marcus, founder, chairman, alexandria, mr. Marcus, welcome to mad money. Good to see you, sir. Have a seat. The times article is interesting because it talked about the notion of the great expansive suburban campuses that were gorgeous and people want to go urban, but i dont think they want to lose that kind of gorgeous suburban aspect with the gardens and the trees. You seem to be able to combine them both. Indeed. In fact, i brought you some peppers from the largest urban garden you may not know about here in new york city at the Alexandria Center for life science where weve taken what was a contaminated laundry site some years ago, mayor bloomberg asked us to build an almost millionsquarefoot campus and we inhabited some of the best of breed, biotech and pharma, in this campus with the most amazing amenities including the largest urban garden in the city. Those of my generation, we didnt care what it looked like. We just were in it to be able to make some money or historically do better than our parents. This new generation of smart people seem to want a little more than just the money and alexandria gets that, right . Well, i think the most important thing is if you think about ten years from now, not too far away, 75 of the workforce will be millennials. So we try to stay ahead of the pack and we have thought about urbanization trend back for the last decade. So we positioned a company in san francisco, in cambridge, in particular, in new york city, among the major cities, to be the dominant force in collaborative urban science campuses with these great amenities from urban gardens, to great restaurants. We have tom kalikio restaurant. Youre a restauranteur here in new york city. Not in his class, but i appreciate that. To great Fitness Centers to collaborative work centers where scientists and others have a chance to have that collision, the interaction, the kind of collaborati collaborative, innovative spark that really makes great science. Okay. You guys have more unbelievable. I love your transes parentsy. Thank you. I was thinking if i was a builder id say, listen, im going to do exactly what alexandria duds, i see what they do, i have the blueprint. What stops other companies from duplicating . Were the proud recipients of our industry, National Association for Real Estate Investment trust. Two years in a row, the gold award for best disclosure. Thats a wonderful thing. We created a mote. This was a garage startup a little over 20 years ago. When no one even looked at this sector. And weve created a dominant footprint in the Major Urban Centers with these campuses with the great amenities, but all in very highbarriered entry market. If you were to come into cambridge today packing 1 billion, its hard to buy. Youd have to ask m. I. T. , are they going to sell . Youd have to ask alexandria, other great landlords. There isnt a lot of product you can sell and not a lot of development capability. So highbarrier entry in each of these markets. You also seem to know your clients well. I know google was an original client. You seem to actually take a piece of some of these guys. Yes, so we have an 11person think tank, really research team, insided company that really looks into the future trends of our industry. They help us underwrite our tenants. Thats why we have 53 Investment Grade tenants, kind of as good as it gets. And that helps us create this great tenant base and also we spend a lot of time looking at future technology innovations. We did googles first campus back in 1998. They were unknown really to the world before they came public, we did their first campus and asked could we make an investment . And we bought some stock at a buck a share. We still own a bunch of that today. Is that for the shareholders or the management no, no, it does, its on Balance Sheet, indeed. Excellent. Listening to you, i was thinking when i was out at apple, they have a beautiful campus but will be competitive against facebook. Facebook is doing mixed use, actually putting dorms up. Will that be the future . Wed love to be in an alexandria dorm right where our work is. Weve been asked to do that. A very important presence in seattle, guess who sits there, one of your favorites, jeff bezos and amazon. We owned a site directly across the street from his office. They came to us, were talking about maybe workforce housing. Thats really not our unique niche so we actually sold it to a local developer whos doing work for housing for amazon. But i think over time, we built a 90unit Apartment Building in cambridge as part of our recent 2 million square foot development. We built it and sold it off to a reit. We might build it but wont operate and own it. Thats not our sweet spot. People should recognize you just bought Kendall Square but does an offering already. Not like youre going to be on then hear a giant equity deal in order to raise the capital. Youve done that already. We did. We did in anticipation of the offering. We didnt lower guidance. When you have a big offering, you lowre lower guidance. We were able not to be able to do that because of our robust pipeline. Were going to grow revenues in 16 and 17 over 35 . Very unusual for a reit. I should point out in talk about the garage startup, company is up the shares are up 1,000 during the period. Many of the major caps weve talked about have performed far worse although they did quite well, too. Thats joel marcus, chairman and ceo after alexandria real es state equities. Nice combination of sustainability both in earnings and what theyre doing in their businesses. Stick with cramer. Gain the freedom to fumble with the new water and shatterresistant Samsung Galaxy s7 active. Exclusively at at t. Wow. I like to say theres always a bull market somewhere. I promise to find it just for you right here on mad money. Im jim cramer and ill see you tomorrow. Male narrator tonight on the west texas investors club. Our company is nutshellz. We produce the worlds strongest groin protector. It could be a game changer in protecting your cojones. [gunshots] ooh, yes h h outfitters is a company that creates outdoor lifestyle apparel. This business was started to rekindle our relationship as brothers. So why dont we head out to the desert . Were gonna put them in competition to test how they deal with each other. Ahhhh maybe you should try underhand. I think i put more effort into going to the bathroom. Its on now. I honestly think you lost. [dramatic music] all right. Narrator deep in the heart of texas, two men carved a fortune from a harsh and unforgiving land