Need the market to come down so they wont look so stupid when they tell their investors how theyre doing at the end of the year. I have to tell you, the bubblicious crowd, they were at the top of their game today. Top of their game earlier this morning, when the market looked really soggy, only to work its way back on the strength of some better than expected earnings. Allowing averages to rebound before pulling back at the end of the day over worries about a step up in syrian strife. Finished in the red. Dow dipping 73 points. S p sinking. 3 . Nasdaq declining. 28 . Im not going to say the market is too high. Thats not the way i think. Thats not the mad money ethos. See, the market is made up of stocks. A ton of stocks. Some of which can be very overvalued and be bubblicious at a given moment. And others, well, they actually may be undervalued at the same time. We witnessed whole markets be completely schizoid. Look, take 2000. While the nasdaq was riddled with dotcom bombs and going from 5,000 to 2,000, whatever, just kept plummeting, the s p excluding tech turned out to be cheap. Same market. Two different markets. Weve seen several stocks this year that a lot of people would call bubbles. I prefer to use a different term, a more judicious word. I say theyre cult stocks. Amazon, netflix and solar city. Well, those are cult stocks, okay . Thats exactly what they are. Teslas a cult stock. They are stocks where the buyers arent all that concerned with profitability because theyre so attracted to the growth that comes from the total Addressable Market that these Companies Seek to corner. Let me ask you something. Do you think we really care, or at least the buyers, do you think they really care how much tesla or solar city can earn . When elon musk, chairman of the latter, crafted a vision of an electric car market dominated by tesla and a solar panel on every roof courtesy of solar city . We measure netflix by subscriber growth because it wants to be the de facto global Home Entertainment company. As long as it keeps adding subs, and as long as thats all we care about, youve got a perpetual motion machine. We dont even want amazon to show profit. Thats right. Amazon is in too big a hurry to take over the world to be constrained by petty things like profit. Its kicking the can down the road, that profit can. A road of riches. But even away from the cult names, its still too easy to call the market a bubble. Its easy to label higher prices the inevitable Collateral Damage from the feds attempts to stimulate the economy. Tell people they need to sell, sell, sell because of the bubbles. Easy. But it hasnt been right, and i dont think it will be. Let me tell you why. Why dont we deal with the reality of the situation rather than just bubbles . Lets talk about how difficult it is when the daytoday basis to call something a bubble and then, therefore, have to sell the whole position based on the logic of bubble overvaluation. Consider what happened today with two big household names, facebook and starbucks. Last night these Companies Reported fantastic numbers. Amazing ones. Analysts armed to the teeth with bubble poppers wanted to work. They went right to work on the q a. They highlighted everything that might make you feel like you have two huge bubbles on your hand. You know what . They had double bubbles. Double bub double bubbles. Thank you. Facebook delivered a monster quarter, but it seemed as though anyone could focus on a comment about how younger teens have decreased usage, and how the company doesnt expect to significantly increase ads as a percentage of news feeds. The result, we had a real dead horse beating about the peaking of facebook. Even though ad revenue grew by an astonishing 60 , the Company Generated 1. 8 billion in ad sales. You left the call with the sense that facebooks best times, theyre behind them. Bubbles. Of course, thats fact. Of course, thats fatuous logic and that revenues for vimeo and instagram havent hit yet. The company is scratching the service of the ad market. The average person spends 350 minutes on the internet every day and desktops, facebook controls one out of every eight of the minutes while on mobile its more like one in five. Theyre just getting started. The bubblepopping analysts saw it differently, though. The company has a selfimposed limit on how much advertising it can offer without spoiling the User Experience with an undertone lurking that younger teenagers must already be turned off by the ads and thats why theyre fleeing the site. The q and a turned the biggest upside surprise of the season into a downer. That should never have happened. Theres no slowing here. I felt very lonely with that viewpoint after listening to the interplay. 50 to 56, afterhours trading based on the numbers but then began a swan dive that morphed into a belly flop as we found out about engagement and ad issues, taking the stock all the way down to 46. Ahha. The bubble, its been popped. Ah no. Turns out you had to buy facebook down there because the growth here is unassailable. The next thing you saw was that the stock closed at 50. 21, up for the day. Same thing happened, exact same thing with starbucks. Despite an incredible quarter, the starbucks call had a feel about it, there was a foreboding sense among the analysts that starbucks cant possibly exceed what its done already. At one point it got so difficult, so, so tense, its Ceo Howard Schultz mentioned the tension between us and you regarding comparable Growth Guidance had gotten out of hand, and said it would be irresponsible to say starbucks would beat the 8 in america and the 7 overall. Lost in the shuffle were the fabulous packaged goods initiatives, doubledigit gains there, the tea rollout. We talked about that last week. All those different foods. Instead, the mob wanted facts and figures about how the food rollout was impacting samestore sales. Management wasnt going to go there. It didnt seem to matter to the analysts that starbucks may be using its stores for launching pads for a supermarket aisle takeaway. Frankly i found the q a here totally nitpicking. I respect the fact most of these analysts are trying to build future models, right, trying to build some earnings models and they are flummoxed about how to interpret the initiatives within the confines of the spreadsheet. A common problem when it comes to starbucks. How do you value loyalty . What price . How do you put a price tag on cars and mobile if they dont know how . They dont. Starbucks doesnt get the credit where credit is due because they dont know how to do it. Schultz pains to point out that the panera problem, the universal problem, the slow throughput on hardtomake specials and new products, isnt an issue for starbucks. He did not mention the term panera. I did. The result, once again, a fabulous quarter was met with selling thanks to fears of overvaluation and the stock drops two bucks from the getgo. Then starbucks claws its way back as people recognize the phenomenal and consistent growth of the enterprise and it finishes up for the day. The commonality of both Conference Call managers trying to explain how Good Business is and analysts crafting possible theses about how business has peaked. Its all downhill from here and were dealing with bubbles. If you think the market is in a bubble mode, then you certainly sell every share of starbucks. Facebook is selling for over 60 times, must be public enemy number one for those who want to burst the bubblicious bubbles. And theyre probably eager to short it. If youre trying to make money and you know growth is hard to come by, you need to buy, not sell these kinds of companies. Sorry. Thats what works. Best of Breed Companies with clear, longterm growth. Yes, there are pockets of overvaluation in this and every other market weve ever seen. If you decide youve had enough and want to cash out of the whole shooting match, youre going to end up selling some of the stocks, best of breed, just when theyre about to rebound. So ive got an oscar wilde everythinginmoderation style solution for you. Its simple. Stocks are hot. They have moved a lot, so take something off the table. We sold some facebook from my Charitable Trust because we had a huge gain and were not greedy. The trust did try to buy some starbucks on the dip. We were restricted because i mentioned it earlier in the day. Selling best of breed stocks wholesale because bubble talk is in the air just doesnt make sense. As those who dump facebook and starbucks learned this very morning, i say take some stuff off the table, but let the rest run. Bob in florida. Bob . Caller booyah, jim, from partly sunny south florida. Booyah, partner. Caller im calling today about chart industries. Symbol gtls. Theyre involved in all aspects of the change to Liquified Natural Gas as fuel for surface vehicles. It sounds great, but they got crushed today when they reported earnings and lowered guidance. Should i get out . Buy more . Or be patient . I was surprised. I was surprised that miss i need to have sam back on because, you know, when i saw it, i was taken aback by it. I was working on squawk on the street, the morning show, and said i got to speak to sam thomas before i make a judgment what to do. Its worth it to just wait. Can i go to sid in massachusetts . Caller hi, jim. Booyah from boston. Im sid. I watch your show with my dad every day. Were big fans. Ill give it to him now. Congratulations to you and all the other members of red sox nation. Caller thank you. Its about expedia. Bought expedia last quarter. Sold for a big profit and the rest i took a loss. Should i buy again in expedia . I dont like to recommend stocks that are up nine the next day because they tend to have profit taking come in. Yes, this company is back. It had spent some unfortunate time in the wilderness. Its now crossed over the river. Its in the Promised Land of travel, and i say buy it. I also say, sid, thanks for watching and dont forget to go trickortreating. Can i go to richard in new york . Richard . Caller hi, jim. This is rich from new york. How are you doing . Im doing real well there, chief, how about you . Caller okay. Jim, i noticed, i was watching one of your shows a couple weeks ago, and one of the top performers you were talking about was the airlines. Yes. Caller and you said that u. S. Airways may be a good, if not better value than delta air lines. Thats what i got out of it what you said. You still hold that position . Yeah, richard, my thinking was there, just so we know, theres a caveat. If they can get the deal with amr, if the Justice Department blesses the deal, then, yes, its better. Otherwise, delta is better, so its an either or proposition. Depending upon the federales. Okay. Don ho would have loved the market chatter today. Tiny bubbles indeed. When bubble talk pops, and its around the best of breed stocks, well, you know what, those who sold today, they learned the hard way. Mad money will be right back. Coming up, ace of bass . Harman internationals Earnings Report is reverberating in the market today and the stock is screaming higher. Can its chorus of highend audio brands continue to be music to wall streets ears . Cramer talks to the ceo. Later, shopping spree . Costco has been on a steady climb as consumers turn to buying in bulk to try and save a bundle. Can you ensure a happy Holiday Season by putting this stock in your cart, or are its days as a bargain long gone . Cramers on location for an exclusive with costcos ceo. Plus, fright fest. While the market flirts with alltime highs, cramers looking out for ghosts and goblins. On this Spooky Halloween night, make sure your portfolio can withstand the wild witch of wall street when he plays am i diversified . All coming up on mad money. 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. Sometimes a company will report a quarter that is so fantastic, it changes the way wall street views the companys stock. Take harman, har for all you home gamers. Maker of highend speakers. You know their name, under Harman Cardin, jbl brands, among others, as well as dashboard systems for luxury cars that integrate navigation, media, smartphone connectivity into a single socalled infotainment system. Heres a company whos a numberone player in every Single Market where it competes. Harman is practically married to the automobile market. Cars are on fire, not just here but also in europe, a business coming back with a vengeance. 9 of the worlds 15 largest auto manufacturers. This tech is not just making easily duplicated commodity hardware but proprietary infotainment systems providing navigation, wireless and safety. Hence why 70 of their business in software. On the sound side system, harman is recognized as the gold standard. High quality professional grade gear used in everything from small venues to enormous stadiums. Now, europe is harmans largest market. When the Company Reported a blowout quarter this morning, like the red soxs blowout victory over the cardinals in game six last night, it was a big deal. One more data point confirming the turn in europes economy is real. 11 earnings beat off an 84 cent basis. Higher than expected revenues. 17. 4 increase over the year. This is a 5. 7 billion company that wracked up new businesses in the quarter. The stock soared 9. 13 . Epic move. Harman is now giving you a remarkable 130 return since we last spoke to the ceo back in june of last year. So more than a double, less than 18 months, and even after this run, the stock is inexpensive. 17 times next years earnings, 18 longterm growth. Lets check in with the bankable dinesh paliwal, president and ceo of harman international, weve been around for a long time, learn more about the fabulous quarter and where it is headed. Welcome back to mad money. Great to be here. I need you to do something. People are going to say, well, wait a second. How does a stock go up that much in one day . And the answer is, you checked off literally every box that a growth stock person wants, right . Well, jim, companies do well in a sustainable business. If you do the four things. One is youve got to innovate. Thats what Good American companies do. Were very fortunate to be surrounded by Great Companies in america. Were a global company, and we have to watch out your cost and you need to always look for the new trends. And it doesnt hurt to be in a good company, great luxury car companies, because we learn from them. So with those four things in mind, then comes the execution. Execution has to become your dna. I think we have to talk about that, because you have three main divisions. Infotainment, lifestyle, and professional. They all grew double digits. They did. You are expanding gross margins. You are Building Products where it is cost efficient. Yeah, i like to call it best cost so mexico is a fantastic example. Right now in the world of harman, we have a plant in 12 countries, but mexico by far the most productive nation we find. And how beautiful it is. Its like an extension of the United States as far as were concerned. Bmw, toyota, and daimler, theyre making cars there. We have mexico. We have hungary. Hungary is our largest production factory in budapest. These are the best cost countries, india, china, ukraine. And the key is, you got to have these countries really collaborate with america. The germans. Thats where the experience is. Right. For people who dont know, give the panoply of some of the other brands and where you find them and what cars. So you will find jbl professional in all ferraris right now. You will find jbl also in toyota. Youll find it in lexus, Harman Cardin in bmws and mercedes and the list goes on. Now Harman Cardin has also come in to all fiat and chrysler cars and we just put in all the lincoln cars worldwide will be shipped with our very exclusive brand. Okay, now, you also, you talked about innovation. You do a series of acquisitions. Here you talk about this one called ryan. 25 million bold one. What you do for patents and brainpower. Absolutely. Im always looking for technology and acquisition. You see, jim, growth is easy. You can always find companies but you have to have a profitable growth to begin with. Number two, im looking for synergy. So little Companies Found in holland, this will help 350 million speaker business go gungho. All the tunnels, unique applications, the Acoustic Properties were very challenged, we can do that. Bob olstein is a noted value manager, comes on cnbc. Hes been recommending your stock for a long time. He always said its a growth stock but its being valued as a value stock. Do you think people recognize you have doubledigit growth in these divisions . I hope people realize that traditionally harman has been put in the bucket of traditional automotive, axle, mechanical. Yeah. As if its, you know, that you make seating or make doors. Its not like that. Its not like that. Highly technology driven. 70 of work we do in software. All application engineering. All the Modular Software system. Were investing heavily in harman cloud. Harman inside. So all the big data we can analyze in the cloud and give access to peertopeer in the car. So youre driving a car, im driving a car. We could be accessing realtime information and keep your systems current. So personalization in the car is the next direction we are taking. I have to believe you do personalization of the car, its very difficult for a car manufacturer to switch out harman and put in another company. Its pretty high barrier to entry, as you will see. Once you inspect in the life cycle, which is typically five years, almost given. Unless you make a mess out of it, which means youre going to be blacklisted for the lifetime. So the key is you have to deliver, like we are now Third Generation bmw. We sta