People to focus on stocks, not policy. I found the change truly refreshing, even if today was a pretty blah session, dow inching up three points, s p spansing 0. 05 , nasdaq rising 0. 16 . N next week, im sure well be looking for it to go right back into that trump prism as hes pledged to talk more about trade which is code for buy american. Well have to look out for anything that could scream trade war. Were also going to need to Pay Attention to the possibility of a rate hike this month, something i think well take as a given after we see the labor departments nonfarm payroll report next friday. I dont mean to jump the queue of the calendar here but friday is the most important day next week because believe it or not, we actually need to see a strong jobs number. Why . Because so many financials, the banks, the insurers, so many of them have rallied so hard in anticipation of a march rate hike that if we get the weak number that might discourage the fed from taking action, it could cause these stocks the leaders. Most election rally to get slammed. Speaking more generally, though, you have to understand that something we once feared, a series of rate hikes, we actually now welcome. Why . Because were confident the economy can handle it, and we want normality. Regular viewers know that i was adamantly against raising rates as long as we had International Turmoil and anemic growth here at home. But if the Global Economy is improving, and it is, and you u. S. Hiring is strong, and it is, then its vital for us to get back to normal with higher rates. Thats exactly where we are, so its time for the fed to move. In fact, if the fed doesnt tighten, i think the market would actually react negatively in part because the banks need higher rates to make money, and in part because wed start worrying that maybe janet yellen actually knows something we dont. Maybe theres some potential problem lurking that we havent thought of. Yes, thats how far weve come. Were actually begging for something that could have caused a crash literally a year ago this week. How about the rest of the week . What are we looking for from individual companies . You know that experience is going to be a big theme of tonights show. Experiences are the one thing that trumps the stay at home thesis. In a world where you can order just about anything right to your door, a compelling experience that you can snap or instagram is pretty much the only thing that can get people off the couch and out of the house. Ill go more into depth on this later, but with that backdrop, i have to ask could there be a better story right now that fits that depiction than thor industries, the number one maker of recreational vehicles that reports on monday. Think airstream. Weve been huge fans of mighty thor, which just hit another alltime high today, but its still a bargain relative to most stocks out there, and its the cheapest of the experiential companies that i follow. Thor tosses its hammer of an Earnings Report after the bell. I bet its going to be dynamite. Now, retail, its been hellish of late thanks to the analyst assault by amazon and the fears of a possible border tax. On tuesday, we hear from two former market darlings. Geez, people used to love these two, dicks and urban out fitters. While both stocks are so beaten down they might be tempting, im going to caution you against buying them because i hate apparel here, and they both sell a lot of apparel. I suggest you sit on your hands. Not that long ago, we had h r block on to talk about the tax prep business. Blocks been getting its head handed to it by intuit, so the company has launched a visible ad campaign with jon hamm to try to step the tide. Did it work . Well find out when the Company Reports tuesday after the close. You know something . Im not as interested in their earnings as i want to hear about the notion that tax refunds are coming in later than usual this year. We have heard retailer after retailer cite this bizarre phenomenon as a reason why they missed their quarterly reports. I want to know if its real, or is it just still one more bogus alibi, just one more thing theyre using to say, hey, were okay. This time its tax. They never talk about amazon. On wednesday, we get results from tech data, and i bet it will be a winner. If you dont know tech data, its a gigantic worldwide supermarket of technology, and judging by the performance of what we call the component stocks, these guys should put up a terrific number. 60 of tech datas business is in europe, and i, unlike pretty much everyone else, believes europes economy is running hot, hence why i really like tech data ahead of the quarter. Thursday, we have beauty and the beast, namely ulta beauty, which reports after the close, and the beastly Signet Jewelers which gives you the numbers before the bell. What makes signet a beast . I always tell you you need to read more than the business section if youre going to make informed decisions about stocks. Sometimes its just right there on the front page like the purchase loin the letter of edg edgar allan poe. This week the washington postpublished a piece about signet which caused the stock to get walloped. I read the story and said to myself, self, these guys better offer real rebuttal when they report or this suckers not going down. If you feel like bottom fishing in kind of like a love canal situation, please read the piece first because there was enough smoke to the article to make you believe there has to be a release sexist fire at signet. Nobody wants to get an Engagement Ring from a chain with a reputation for mistreating women. Lets hear what they have to say. Maybe theres another side of the story. There often is. Ulta beauty on the other hand is one of our absolute favorites because were in the snap economy. These days whenever you step outside, you presume youre going to have your picture taken, and that means you need to go to either ultas website or the store to load up on cosmetics in order to look your best. My youngest daughter tells me that snaps quick catch and releaselike philosophy of shortlived pictures allowed you to be a little less make up centric, but the permanence of instagram and facebook make ulta an imperative. The Company Reported a terrific number last time but sellers came out of the wood work and drilled the darn thing. Its now worked its way all the way back to where it was before the last quarter, and if they nail it, this sucker is going to bring out bigtime. If that happens, ulta will join only a handful of retailers with stocks that are doing well, and all of them are either closeout companies where they buy merchandise from stores that are closing or enterprises linked to your home. Ulta could be the lone exception simply because you need to look your best while you seek out experiences that are worthy backdrops for endless vanity. Ulta and thor, who would have thought it . Finally besides the nonfarm payroll report on friday, we get an Earnings Report from vail, the resort company. I think its going to be a good one. Why . Maybe im just doing this to drill it home but its all about experiences, the kind that we snap. Vail plays right into our thesis, hence my belief that a better than expected quarter could be in the offing. Well also listen in to an analyst meeting. Utx is one of the Big International conglomerates that has seen its stock soar since the election but i worry about the protectionist issue. Is the move deserved . Could it be threatened by trump . Hayes is enough of a straight shooter that hell let us know either way. Heres the bottom line. Weve got an employment report thats going to drive the bus when it comes out on friday, and we need to be strong. We need it. Its got to be a riproarer, a snorter, to confirm ourt belief that its time for the fed to tighten. A rate hike affirms the growth weve seen. We get a weak jobs number, i think it will repeal a lot of the gains i expect to see next week. Wow, what a difference a year makes. Lets go to john in florida, john. Caller hey, jim. Booyah. Booyah, john. Caller whats your take on costcos disappointing earnings . I know that i make most of their money from memberships. They just raised the rates. Lets talk about it. You know, look, i talk about the mistakes we make for the Charitable Trust. We sold costco last week at the high, and one of the reasons we sold is because i thought the expectations had gotten too hot. They were just the thing had gone up too much, and ive got to tell you after listening to the conference call, i think thats what happened. I got to tell you, my Charitable Trust wants to get back in there because exactly what you said. I think the fee will be good. But, remember, it was a very confusing call and it left a lot of people scratching their heads about what was really wrong at costco. It wasnt really answered on the call. Lets go to george in florida, please, george. Caller hey, jim. What do you think about zoes kitchen . I like the Business Model very much of zoes. Id like them to come back on. Ive got to tell you, i am not a fan of restaurants right now. They offer that fresh mediterranean approach and there are not a lot of competitors. But in the end lets understand each other. This going out trade, unless its experiential, it aint working. Lets go to michael in massachusetts, michael. Caller booyah, cramer. Booyah, chief. Caller dynamics, been doing well this past year. Sell it or hold it . No. General dynamics is my favorite way to play the big spend. Formerly was Lockheed Martin but its too big a move and too much on the griddle. General dynamics had a magnificent quarter. I also like raytheon even though thats somewhat out of favor for the group. All right. Fridays employment report is the focus next week. A strong number is crucial, but a weak number could repeal any gains. On mad money tonight, wish you could buy stock in beyonce . Dont we all . Tonight im eyeing one play thats gets us about as close as im ever going to get. Dont miss my top play on experiences. Then pack your bags and sun screen. Im spanning the globe to find the best place. Consumers are paying up to wind down on vacation, but is there still time to hop aboard the hot trend. And its a private company at the next sus of fitness, technology, and media. Tonight im talking to peloton. Youre going to love it. I suggest that you stick with cramer. Announcer dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. At bp, we empower anyone to stop a job if something doesnt seem right, so everyone comes home safely. Because safety is never being satisfied. And always working to be better. I keep telling you, i keep telling you how the new stay at home economy, where you can order just about anything right to your couch as you watch netflix or play video games is wrecking so many different businesses that require their customers to actually leave the house. Sell, sell, sell. So many retailers have been on lit railed. So many restaurants crushed. But theres at least one big exception here, one area that remains immune to the stay at home thesis. Im talking about the experiential economy, companies that traffic in experiences, not stuff like apparel or food continue to get customers, especially the coveted younger demographic. You may not need to go outside and drive somewhere to buy yourself dinner or a sweater, but events theyre a different story. Hallelujah. At least for now, theres no way to duplicate the feeling of being at a concert in your living room. It doesnt work. Not unless you have a lot of money to burn and youre willing to totally trash your house. So how do you profit from this experiential slash entertainment economy . Do you know theres really only one pure play on it . One. Thats live nation entertainment, lyv. A company we brought on the show just last week. Live nation operates 167 venues worldwide. They produce and promote shows. They manage artists, and they run four of the five largest Music Festivals in north america, including one that my kids love. La lapalooza. And on top of everything else, they own ticket master which means if you want to go to a concert, these guys get you coming and going. They also get a lot of nice sports action too. When i spoke to livenations ceo Michael Rapino after his Company Reported last week, it became clear to me this business is on fire. You know what, i wanted to do this piece tonight because i dont think this stock is getting the credit it deserves. I got to revisit it and drive the point home to you about how much i like this story. First lets talk about that quarter. Live nation delivered a nice top and bottom line beat with robust guidance but the stock got slammed anyway. Mainly because it had run up pretty hard going into the report. Their concert business, its red hot. North american stadium and amphitheater attendance up to more than 70 million. They keep buying these new festivals. Theyre just cash machines. 11 last year, bringing the total up to 85 across 12 different countries. Attendance increased by 15 last year. Sponsorship and advertising revenues increased by 20 because advertisers see events as being some of the best ways to connect with, yes, the coveted millennials. As for the ticketing business, the gross transaction value was up 15 , including a 36 rise in mobile tickets sold. These are excellent numbers. I mean big league. What you have to understand here is that the Music Industry has changed and changed dramatically over the last decade, and the changes are only accelerating. For the better part of the 20th century, if you were a musician, you made most of your money selling records or tapes or cds. Then around the turn of the millennium, mp 3s became a big deal but even with lots of people pirating music, artists still made plenty of money selling their music on platforms. The rise of streaming has totally changed the Business Model. Among spotify and pandora and apple music, there are so many ways to listen to whatever you want without paying very much for it, which means artists make a lot less money selling music than they used to. These days, they make money by touring. House of pleasure. By performing at concerts and selling merchandise. That means live nation has a hammer lock on the one part of the Music Industry thats still really profitable. Thats why the company has such great relationships with pretty much any band you care to name. Look, like i said, people still go to live entertainment. Its the one thing thats immune to this stay at home economy, in part because, well, yes, its a fabulous place to snap or instagram. I mean this drives everything, doesnt it when you think about it . How did apple get up to where it is . This drives everything. Last year live nation hosted less than 3 more concerts, but the number of fans who came to those concerts increased by 12 . Not only is the experiential economy unharmed, it actually seems to be doing better than it used to, which is how live nation managed to increase its concert ticket prices by an average of 5 last year. Heres how ceo Michael Rapino put it when we spoke to him last week. Live experience, that two hours of magic is a real kodak moment. When you talk to consumers around the world on what do they want to spend their disposable income on, concert events right up in the top two or three. Oh, i just like taking pictures of myself now. In short, with people spending so much of their free time at home, experiences that really stand out have more value than they used to. And with Something Like a concert where most of the costs are fixed, every incremental customer is basically money in the bank. Hence how live nations concert business could see its adjusted operating income double in 2016, and this business looks to remain strong through 2017 too. We know the advertising side of things is in terrific shape, and the company has already contracted for 70 of its budgeted advertising revenue in 2017, much better than they were doing at this time a year ago. On top of that, ticket master is doing very well. Here the companys made Big Investments in improving the technology and on the conference call, management indicated that those bets are now paying off. Just from the beginning of the new year through midfebruary, ticket sales were up 9 . Guys, im telling you, nothing is doing as well as this company. How on earth can ticketmaster stay relevant in a world where amazon tends to devour the market share of anything that can be sold online . Rapino had a great answer for that one too. Listen. You look at two businesses. On the live nation side, we have 77 million tickets, and we get to decide how those are distributed, right . We can decide at live nation whether we want to use amazon, ticket master or stubhub. Thats one of the unique parts of our business. We control the content as well as the distribution. Amazons taking orders from them. When you remember that a huge part of the ticketmaster business involves selling tickets to live nations own events, you can see how theyre really in an incredible position, a league of their own as rapino put it. To him, amazon is not really a competitor, its simply an additional retail point. Theres one last thing you need to know here. Live nations largest shareholder is an outfit called Liberty Media, which owns roughly 34 of the company. Thats good news for two reasons. First, Liberty Media is a brilliantly run media giant which owns several businesses that offer great cross promotional opportunities. Second, liberty is the sticky institutional owner that effectively reduces the share count, creating some artificial scarcity value. Of course that only helps so long as liberty wants to hang on to its shares but at its annual meeting, the ceo explains he likes it for the same reason we do. Touring is the only way to make decent money in the Music Industry. Who knows . Maybe someday theyll just buy the whole company. They are such smart guys. David faber always interviews them, and im always mesmerized by anything liberty wants to do. Let me give you the bottom line. In this experiential economy, live nation is king they own practically the whole live music and entertainment space, which makes this a Fabulous Business at a time when concerts are the only way artists can get paid and one of the few things millennials will actually leave the house for. If only so they can take a selfie and send it to their friends of course via the hottest stock on earth. Snapchat. Had to work it in. All right. Much more on mad money ahead. Finding the right investments is no day at the beach, but could an investment in the Online Travel space be the trip your portfolio needs . Ill tell you which company is looking like a fivestar and which is more like a bates motel. Then thinking about skipping the gym today . Think again. Im eyeing one Company Offering on demand spin classes from the comfort of your own home. Dont miss my exclusive with the private company peloton. And the Company Behind snapchat went to unbelievable 40 billion valuation. Can it possibly be worth as much as Companies Like cbs or marriott or more . My answer is going to surprise you. So stick with cramer. This car is traveling over 200 miles per hour. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Ive talked to you about the fabulous resurgence in the airlines, but i think its time to take one step further into the travel and leisure space by looking at the Online Travel agents. At this point weve now heard from expedia, priceline and trip adviser, so we now know how they finished 2016 and how the beginning of 2017 is looking. So heres the big question. Which of these stocks is really best of breed because you know i falk about them all of time, and which do you need to avoid at least for the moment . Regular viewers know that i just think this industry is fantastic. Expedia and priceline have both been taking the world by storm, making it easier and cheaper to book flights and hotels and rental cars all over the world. Trip adviser is a bit different, which is why its stock has had a much more negative trajectory. Trips the Worlds Largest travel site where you can find advice and recommendation from real travelers while expedia and priceline make most of their money by taking a cut of hotel rooms and Airline Tickets they sell, trip adviser has got an advertising driven Business Model. For a long time, ive maintained priceline is best of breed, and the action in the stock bears that out. Priceline is up 33 over the past year. Expedia is ub nearly 11 . But trip adviser is down a stunning 36 over the same period. Now, taking a longer view, pricelines been a consistent outperformer for years. So well run. Expedias momentum seems to be slowing of late but i would never count them out. Trip adviser, they cant seem to get it together at all. So what do we learn when these Companies Reported . Lets go through them one by one. Expedia announced its results a little less than a month ago. It delivered a 20 cent earnings miss off a 1. 37 basis, slightly stronger than expected revenues up 23 yearoveryear. The earnings miss on the surface looked alarming but its mostly related to the Company Spending more money in order to grow business. I think its a good thing. Now, in recent years expedia has made a ton of acquisitions and last year they integrated the biggest purchase of them all, the 1. 6 billion takeover of orbitz which closed in late 2015. Overall, though, expedias core Online TravelAgency Business was up 13 yearoveryear. Home away was up 30 , and tri va go, the mostly european based weapon site that expedia owns a controlling stake in climbed by an astounding 65 . Expedia has already started reaping the rewards of its orbitz acquisition and the home away deal. Its really paying off now. They changed that Business Model, shifting from a tiered subscription business into one thats much more based on transactionbased fees. Thats so smart. The old business just never really panned out the way i liked. Home away growth is expected to slow as we move further into 2017. Expedia also plans to spend roughly 100 million migrating parts of its platform onto the cloud. In response, the stock barely budged, falling about half a percent. Not much of a reaction. Then again this was a better quarter than the headlines might have led you to believe, and we stuck with our recommendation. How about priceline, which reported this past monday after the close and i mentioned yesterday just a little bit. There was nothing complicated about this quarter at all. Pricelines results, fabulous. Every single line. The Company Reported yet another monster earnings beat. They earned 14. 21 per share. Wall street was looking for 12. 98. Revenues came in higher than expected, up 17. 5 yearoveryear. This is a big company. Pricelines gross bookings increased by 25. 8 . Room nights sold were up 31 . Rental cars levitated 14. 4 . Now, that is much stronger than expedias 8 increase in gross bookings or its 15 uptick in room nights sold. Guidance seems conservative but thats what this company does. I think priceline is probably the master of upod, which is underpromising so they can overdeliver down the road. But this time the strength of the Quarterly Results showing through is maybe wall street has finally figured out the pattern here. Hence why the stock rallied more than 5 the next day rather than selling off from the guidance. The other crucial thing is on the conference call, priceline pointed out that 2016 was actually an investment year for their core brand. They put in a new leadership team, spent money to rebuild their technology, and overhaul the website and grew their kayak and booking. Com brands. That means priceline is in good shape for the rest of 2017. All right. Lets talk about the elephant in the room. Lets talk about trip adviser. It always feels like the odd man out when i compare it to the two other big Online Travel agents. Remember, trip adviser isnt really in the same business as expedia or priceline. They sell ads, so maybe it shouldnt surprise us anymore when the Company Reports disappointing results, something thats becoming a pattern. I do not like the ad supported model as much as i used to. We heard from trip adviser about two weeks ago. They reported a 15 cent earnings miss off a 31 cent basis, weaker than expected revenue, up just 2 yearoveryear. Management talked about how happy they are with the roll out of their instant booking function. Its a better kind of advertisement. They talked about potentially doing a major multiyear rebranding effort to get the business going again. If you listen to the people running trip adviser, they made it sound like the company is finally turning the corner after years of struggling with monetization issues. Their forecasting doubledigitity Revenue Growth this year and that would mark a big acceleration. But wall street isnt buying this one. No, theyre not buying this turnaround story at all. Analysts slashed their forecast for 2017, and the stock lost nearly 11 . 11 of its value the next day. I got to tell you, i think this is a case where the numbers really do speak for themselves. Priceline is firing on all cylinders. Expedia might be out of woods after a year they had to spend heavily in order to grow their business. Trip adviser, i think its just tried to put a happy face on the same old disappointing results. I am pulling for them. I really like the companys product, but the stock digging a little deeper, expedias numbers should improve this year now that they dont have to spend so much time integrating orbitz. Meanwhile the tri va go business is on fire and home away is doing well. Even though expedia plans to spend a lot on the cloud this year that should be offset by lowering Infrastructure Capital expenditure requirements which should provide a boon for the companys earnings. This improve. Is why citigroup upgraded the stock from sell to neutral today. I knew they were going to do that. They noted a faster than expected pickup in room nights sold. This is part of the rerating that im expecting about expedia. I think their issues last year were mostly about focus. With the stock now trading at 22 times this years earnings estimate, its really cheap for a company with a 24 long term growth rate. However, priceline is still the undisputed best of breed. They are doing incredibly well. Managements brilliant execution remains almost flawless. Even after rallying more than 100 points this week to 1,735 today, this stock remains cheap. As i mentioned last night, its one of the Unsung Heroes of this entire stock market. As for trip adviser, this is an abject expect of what happens when a growth stock loses its mojo and transitions to a value stock. That transition can take years. Trip adviser peaked in june of 2014. Since then its lost 62 of its value and i think the declines not done. The bulls really need to lose all hope for this one can bottom, and that clearly hasnt happened yesterday given that it sti heres the bottom line. After looking at these latest quarters, the Power Rankings for the Online Travel group remain unchanged. Pricelines still the top dog. Expedia is improving but still comes in second. And trip adviser, its in a distant and untouchable third place. Kyle in florida, kyle. Caller booyah, jim. There you are. I didnt know you were in florida, kyle. Thats great to have you. Whats going on. Caller i think the whole cnbc team did a great job with the Warren Buffett coverage. Beckys so great, man. So great. Go ahead. Caller so on that note, id like to ask you about the airlines as a whole. I know buffett is heavily invested in the airlines. What i want to ask about is Spirit Airlines and more specifically how do you think these other airlines doing the economy bundles affect spirit . Spirit is the one i have the least conviction in. Its had a nice move, but im not familiar with management. I have to have that new management on. I happen to think that southwest, thats gary kelly, is just so good. By the way, the deregulation by trump today shows you how powerful deregulation can be those stocks levitated as soon as we saw the new regime. Its time to rides the tides of the Online Travel agent biz. Priceline is best of breed. It is just on fire, okay . Expedia is improving. Trip adviser, you got to stay away from that one. Much more mad money ahead. When you think of exercise bikes do you think about the one sitting in the corner of your basement with the cobwebs . No. Well, good news. I got a company that wants to help you sweat in style in the comfort of your own home, maybe even in your bedroom. Do not miss my exclusive with peloton. Then snap made its ipo debut yesterday, but can the squirrel filter really justify its valuation . Im going to give you my take. And its a thank god its friday edition of the lightning round with the week that was. I smell pizza. Stick with cramer. Runs on intel . That ride share . You actually rode here on the cloud. Did not feel like a cloud. That driverless car . I have seen it all. Traffic lights, street lamps. Business runs on the cloud. And the cloud runs on intel. I wonder what the other 2 runs on. car horn but they didnt know they were all tobacco products. E. Ooh, this is cool. It smells like gum. Yummy this smells like strawberry. Are these mints . Given that 80 of kids who ever used tobacco started with a flavored product, who do you think Tobacco Companies are targeting . Do we get to keep any . Announcer what has two wheels, lots of energy, and an army of devoted customers. The answer just may be the future of fitness. Peloton can whip you into shape, but can this private player stay ahead of the pack in the race for your dollars . How do we reconcile the stay at home economy theme where you can do just about anything from your couch these days with the Healthy Living theme, where more and more people are trying to get in shape or stay that way . Typically that requires exercise, something thats not really compatible with being a couch potato and eating a lot of doritos. But theres a privately held company thats come up with the next best thing, a way to mesh the stay at home economy with the Healthy Living philosophy. Im talking about peloton. This is taking the country by storm. Its a company that makes inhome stationary bikes but also has a network of riders and spinning classes that you can take right from your living room. Its not just a maker of exercise equipment, its a Technology Company with a social networking kicker because once youre on their system, you can connect with riders all over the world to compare your progress, motivate each other. Peloton has only been around since 2012. They already have 200,000 users. Some have called it the netflix of fitness. Lets take a closer look with something that i am very excited about. Lets talk to john foley, the founder and ceo of the peloton to learn more. Mr. Foley, welcome to mad money. Good to see you. Have a seat. I have to tell you, i usually dont invoke family, but my daughter made me follow this snap thing. My wife, lisa, is addicted to peloton. Its the best gift i ever gave her. She said, listen, i thought nothing could ever pry me out of the studio with rachel w. And soul cycle. Youre doing it. How did you come up with this . I call it, you know, its the cliche, the mother of invention. Necessa necessity is the mother of invention. My wife and i are a young couple. We have young kids. Both of us work and in our 20s and 30s, we went to the gym. We went to soul cycle. We love that. And theyre fabulous. Its great. Its a great workout. We got addicted to that instructorled Group Fitness classes. But when we had kids, time became more and more valuable. We said, could we build a technologyenabled platform that would allow you to consume that content on your schedule, on your time, at your location . So we built the peloton bike. Now, ill thi think you can t people you should enter or be competitive or you dont have to and theres a million different classes. Theres over 4,000 on demand classes. You call it the netflix of fitness. You say were a Technology Company. Were also a media company. So we stream 12 hours of Live Television content around the world every day from our studio in chelsea. So you can patch into and transport yourself into a live class or take one of these ondemand classes. But theres, you know, short classes, long classes, all different styles of instructors. So theres something for everybody. Now, you have a technology background. You ran barnes noble. Com . Thats right, thats right. That was the ultimate got disrupted by somebody else. You certainly dont want to be disrupted at peloton. For sure. Its funny, William Lynch who is now my partner, he was the ceo of barnes noble. But we were watching the tablet category, and youll appreciate this, jim. Amazon was making the kindle fire for 250, but they were selling it for 150. Razor, razor blades. I said, people dont want the hardware. Your wife doesnt want a stationary bike. She wants the content, the community, the whole experience. So we built the platform to take that experience. So we dont make a lot of money on the hardware. The Business Model as you know is 39 a month for unlimited classes. I dont want to be a commercial for the darn thing, but we keep it in our bedroom. We have a big gym but she said, no. This is too important. People who cant get to their class insist on it, but, yes, if you have kids at home, its absolutely right. Now, i have to tell you im a treadmill guy. What do you have for me . I will tell you, jim, we are not going to be a stationary bike company. Were going to be a Disruptive Company at the next wait. Can you give me something because im treadmill. Give us time. And my wife has to see even though were not allowed to own stocks, would i ever would she ever be able to own a share in peloton if she could own a share of stock . I would say eventually she will be able to own a share of peloton. Were going to capitalize this thing to be very aggressive. We think this is a massive opportunity. We know our consumers love it. Our Net Promoter Score is 91, so people who have the bike love the bike. So were going to get the word out. The last thing i want to ask is i do have instructor friends and they are worried because peloton is so good. Why couldnt fly wheel or soul cycle do this . So i think theres going to be competition. Right now theres no competition. Peloton is the only game in town. But because its so good, because its so coveted, we expect competition to come from all angles. The answer in short, jim, is we have a very, very hard core Technology Company. We make a tablet computer better than apple. We write custom android, python services in the cloud. We are as hard core as anything in new york city right now. So if soul cycle or fly wheel were to try to reinvent themselves as somebody who could compete, then maybe they can come after that. But i dont want to be cavalier. We will have competition. Right now you are king. Anyway, look, if you havent tried it, my wife was a state champion. Thats one of the reasons she said this is the only thing that is equal to the level that shes ever seen in actual competition. Thats john foley, cofounder and ceo of peloton. Its very exciting. Its a private company so i can feel a little more excited than usually. Mad money is back after the break. Announcer lightning round is sponsored by td ameritrade. It is time it is time for the lightning round on cramers mad money. Thats where i take your calls rapid fire. You tell me the name of the stock. I tell you to buy, buy, buy or sell, sell, sell. Well play this sound [ buzzer ] and then the lightning round is over. Are you ready, skeedaddy . Its time for the lightning round on cramers mad money. Lets start with greg in idaho, greg. Caller hey, how you doing, jim . Couldnt be better. How about, you partner . Caller hey, listen, im looking at something longterm. If money opens up for infrastructure, energy, how do you feel about cdi . I think its okay. Fluor, cbi, these are inconsistent companies. Youre not going to get me to really bite on these. We liked mastec, a better play, emcor too. Lets go to richard in virginia, richard. Caller jim, booyah. Tgif. Exactly. I was thinking the same. Whats going on . Caller not a bunch. Im retired. Im wanting to move some of my 401 mutual funds into some long term hold stocks. One of them im looking at is mobileye. No, no. Way too inconsistent. I want retirement money in that stock. No way, no how. Linda in new york, linda. Caller hi, jim. What should i do with my shares of Horizon Pharma . I dont care for Horizon Pharma, especially pharma is not my cup of team. Im going to have to say take it off the table. How about joshua in my home state of new jersey, joshua. Caller how you doing, jim . Im doing good. How about you . Caller good, buddy. Im about 150 on amd so far. I was wondering with the recent pullback, do you see that as a buying opportunity . You got to wait until all the hot money came in. All the hot money was in for that chip that came out and the reviews were okay. Let the stock go down to 12 and a quarter and pull the trigger. Lets go to steve in new jersey, steve. Caller hey, booyah, jim. Booyah. Caller i have a question for you. Boeing. Bought at 172. Wondering if i should take profits or it wouldnt be so bad to take half off the table. That thing has been too much of a horse and i like boeing a great deal. And that, ladies and gentlemen, is the conclusion of the lightning round [ buzzer ] announcer the lightning round is sponsored by td ameritrade. Rangers win . Geez. Paper towels. Theres a rite aid across the street. I wont go because amazon brings it to my house. You think i want two big bags of toilet paper Walking Around . My kids dont even have cable, darn it. They dont watch me. Drives me crazy frankly, but the wife doesnt watch me either. Well talk about it after the show. Dozens of services that will pick up food for you at restaurants and bring it right to you. The couch is your home. You know, i got to go bring this stuff to you. Enough already. Sometimes i like wearing a flower crown. It may only last for ten seconds. [ scream ] caller i just want to be clear. I do not want to have your baby, okay . [ contradi that sounds fair enough frankly. And that, ladies and gentlemen, is the conclusion of the lightning round. [ applause ] so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. On a perfect car, then smash it into a tree. Your Insurance Company raises your rates. Maybe you shouldve done more research on them. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claims centers are available to assist you 24 7. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Close your ears. You dont want to hear this. In fact, nobody wants to hear this, not the longs or the shorts. But you cant get caught up in valuations when it comes to an unseasoned initial public offering. And snap is the definition of an unseasoned ipo. Yesterday when the company came public with a 24 billion valuation, i said it would go right to 40 billion. My partner on squawk on the street, david faber, snickered and asked when . I said by the end of the day. Okay, so i was off by a couple hours. I know. It seemed preposterous that a moneylosing company with a stock that doesnt even have any Voting Rights should be worth 40 billion or even 38 billion where it close ed today. But to quote Clint Eastwood in unforgiv unforgiven, deserves got nothing to do with it. The process does. And ipo, the process, sometimes stilts heavily toward overvaluation. This is one of those times. Today snaps stock might look like it it might do almost nothing. It was up about 20 contributes when the s p futures were down. Then before the opening, we learned that comcast, the Parent Company of this network, had invested a staggering 500 million in snap at the 17 ipo valuation, and that was all she wrote. The darn thing took off, ultimately closing up more than 10 rs p. The sticklers immediately pointed out that snap is now trading at more than 30 times sales. Thirty. Facebook, which was on the cusp of what turned out to be insane profitability as opposed to snaps inane prove lig ascy, traded at 19 times sales when it came public. So snaps valuation is more than 50 higher than what we paid for facebooks ipo despite being no where near as good a company on any metric you care to name other than on hotness. Thats not really a metric. I think all snaps executives really wanted was to not be lumped in with twitter which sems at five times sales, came public at 13 times sales although that number quickly went above 20 because of all the hype surrounding the company. We know that twitters business peaked pretty soon after it came public and there are fears snap could have the same problem as its growth rate slowed pretty dramatically when facebook introduced Instagram Stories which is a total knockoff of snapchat stories. What do the buyers know here . Some are nugss that you need to buy more stock to round out the positions so theyd be large enough to matter to their portfolios because they got some on the actual 17 deal price. Others, though, including many of todays buyers were reacting to comcast investment news. Theyre thinking perhaps there will be more programming, more advertising than people expect. People are buzzing about an ecosystem here. Still others are simply saying this one has momentum, and i want a momentum play. There arent many left. No matter what, because of the peculiar way that initial Public Offerings hold back stock, the 200 million shares of snap that now trade publicly, not the 1. 2 billion shares that arent public, are determining the companys valuation. The tail is wagging the dog, people. As long as thats the case, we cant draw real conclusions about what the Company Might be worth. Once we get the float expanded and we learn how much advertising love there is for snaps daily users, then we can talk about valuation. Until then, valuation is not really relevant, and youll simply drive yourself crazy by trying to be rigorous about something where rigor just doesnt apply. Stick with cramer. Safety doesnt come in a box. Its not a banner that goes on a wall. Its not something you do now and then. Or when its convenient. Its using stateoftheart simulators to better prepare for any situation. Its giving offshore teams onshore support. And its empowering anyone to stop a job if something doesnt seem right. At bp, safety is never being satisfied. And always working to be better. Well, we hope you got the experiential idea, okay . Whether it be thor that reports on monday, whether it be the travel companies. Of course whether its live nation or, yes, its snap. Its where the action is. I like to say theres always a bull market somewhere. I promise to try to find it just for you right here on mad money. Im jim cramer, and i will see you monday male announcer the economy is going through tough times. Many hardworking americans blame wealthy ceos out of touch with what is going on in their own companies. But some bosses are willing to take extreme action to make their businesses better. Each week, we follow the boss of a Major Corporation as they go undercover in their own company. This week, americas oldest fastfood company, white castle, with its own restaurants, bakeries, and food preparation plants, it sells more than 500 million burgers each year. The boss is going to trade in his executive office and fast cars for a hair net and an apron