1800743cnbc or tweet me jimcramer. Sometimes this market can be incredibly difficult to navigate, because the crosscurrents are so powerful and so crushing. Today, for example, the averages got slammed by a wholesale collapse in the commodity complex, especially oil. But then the republicans passed their Obamacare Repeal bill in the house of representatives in the afternoon and we rebounded. The doubt ultimately sinking six points, s p advancing 0. 06 , nasdaq edging up 0. 05 . It was like there was no session at all. Whatever your opinion of the health care bill, wall street likes it. Because it contains tax cuts and demonstrates that Speaker Paul Ryan can actually do his job. You might have expected the market would roar on the news. Nope. The broader economic backdrop is just too grim right now. With the fed set to keep raising interest rates, right when business seems to be slowing, and its too dangerous to go full hog on stocks when the Labor Department announces its employment report tomorrow, 8 30 a. M. What if its weak . Where are tahe animal spirits . So what kept the lid on this market . It starts with commodities, that are weak across the board. Aluminums headed down. Irons oh, man, get out of the way. And oils simply crashing. Down 5 today, the worst day in months, all the way down from 53, just a few weeks ago to 45 right now. What does that mean . Let me put in context. From the perspective of a money manager, it means we get a switch, a rotation into stocks that people had abandoned. The commodity consumers. Not the commodity producers, and their accessories, but the companys actually benefit from this decline. And that rotation was augmented by some takeover talk thats sto darned convoluted that ill have to try to throw it into to explain. Lets start with oil. You know ive been negative on this show on oil since it traded at 53 bucks. Longer than anything we have seen in ages. Everyone was in the pool at 53. But we didnt have the surging levels of demand that we would need to support that level of establishnes nesnes nesnes nes establishness. Thats right. They were selling futures in oil in order to raise cash so they could boost production. Sewing the seeds of their own demise. Now oil is all the way back to 45, but its trying so hard to hold that level, after still one more day of devastation for the bulls that freaked out a lot of people. In many different parts of the market. So what happens now . Of course, while all the oil stocks got hammered again. The bears went after even the biggest ones, like chevron. And pioneer, which i thought reported some pretty good numbers last night. And of course, occidentaoccidenh was just plane horrible. Remember, though, these oil stocks are all part of gigantic etfs, so this companys specific stuff doesnt really matter. And the Collateral Damage is enormous. When traders see oil getting hammered, they instantly start selling the stocks of any companies that need Global Economic growth. Even Companies Like caterpillar and cummins, who just a few weeks ago told us things are great. More importantly, that money flows the right back into all sorts of companies that francly dont have much growth, like these darned food stocks. Because oil is signaling were going to get, i hate to yause ts word, but a recession if the fed keeps tightening. Its what oil is saying. The crosscurrents are vicious. Interest rates are going up, because they march to the tune of the fed, which told you yesterday the economy is going to reaccelerate. So youve got this bizarre confluence, where the bank stocks are actually going higher. Remember, they need higher rates. But if it werent for the fed, i think rates would be falling, taking the bank stocks with them. How do we make money in this rotation . First, i have to admit, it does have some legitimate numbers behind it. This company we talk about, zoets, put up its usual, incredible numbers and its stock stored. The deflation trade resurfaced, which mean money flows back to the insurers like aig, met live, and allstate. The biotechs always surge at this time, and this time is led by regeneron. Did you see insight today . It reported a miserable quarter and still went higher. You know what that means. Takeover buzz. Medical devices soared, they always go up right now. Its always business as usual in these big names. And large pharmacatches up. Eli lilly at 80, bye, bye, bye, theyre buying it. These are staples. Then we have colgate and General Mills rallying, because last night kraft heinz reported a hisohi hideous, horrible, worstinshow number, so they have to buy somebody, come up with a potential acquisition to save themselves. On the call, kraft heinz was asked if any company would want to sell to them considering their slash and burn methodology. Given that warren buffet is a major investor, we know he doesnt favor hostile takeovers. I bet he talks about this. So the question is, whos going to sell to these guys . Who would ever do it . After all, when kraft heinz went after unilever, not only did the ceo of unilever object, so did b buffett. Its quarter should have sent the stock down a minimum of 2 to 3 if not 4 to 5 pointses. And i think thats where its headed unless they can pull a takeover rabbit out of the hat. But who would want to sell to them. We had big movement for anheu r anheuserbus anheuserbusch. Corona is an instant readthrough for constellation brands, because it has the american rights to corona and mow dello. Lets not forget the highest Growth Companies have stocks that tend to run when the economy slows. So faang is a little controversial, because last night cold water was thrown on the bulls by none other than facebook itself, i still think its a remarkable business. I told you that would happen. Its suffering the same hangover we got the last few times. We all know the apple story by now and amazon is taking a breather. But netflix and alphabet, on their usual roll. Heres the bottom line. The rotation today was predictable as it gets. When oil gets slammed, the algorithms take over, the cyclicals get sold, the recession stocks rally. That tends to keep happening, until oil turns around, because you cant untrigger a machine anymore you can teach an old dog new tricks. Dont get too comfortable with this rotation, though. Because tomorrow we get that nonforeign payroll number from the Labor Department and its going to wipe todays slate clean and give you a new one to draw on. While you might have expected the market to rally on the Successful Health care vote in the house, the rip tide of oil and worries about payrolls put a lid on what could have been a raucously positive session. Lets take some calls. Why dont we start with carl in new york. Carl . hey, jim. Booyah from new york, buddy listen. Booyah. Good to hear you from. Caller ak steel, buy or sell . We are buyers of newcorp. My Charitable Trust buys new corp. Almost every single day. Its the best in show and we have to think longterm. Im going to ben in new york. B ben caller big booyah from new york. How about cg . Do i buy more, hold, or sell and realize my gain . No, no, no, you want to hold this as long as the stock market gets better, its great for kkr, great for carl icahn, we want to hold on to blackstone. Theyre all good. How about steve in missouri . Steve . Caller this is a big booyah from brother jims church of cramerica. I have invested in amazon, and due to that, i have tried to concentrate my Online Purchases to amazon, but ive noticed that amazon appears to almost always limit Free Shipping to prime members. So i found the same things on other sites, mostly ebay, that ship for free. So due to this, im questioning amazons is online selling. I know its only part of amazon, but its what the company was built on. What do you think . No, i think amazon is fine. Its you know, its a great Revenue Growth story. It actually had good profits last time. I prefer it to ebay. Ebay had a soso quarter. I say stick with amazon. All right, ready, set, rotate we saw the recession stocks rally today and that will happen until oil turns. But you know what, tomorrows nonforeign payroll number will give you a new slate to draw. On mad tonight, hey, its our last day in San Francisco. Better do things big. So were talking with intel about the future of tlechnology driverless cars, and why not throw in lebron james. Hes been looking good. I said big, didnt it. And tech inventor twillio has had a tough week with the company losing more than a quarter of its value. Ill take you behind the warning it issued to find out whether this drop is an opportunity or not. And theres one bizarre ingredient you need to understand in teslas Conference Call last night. Hallucinogenic drugs. Ill explain. 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 mad money. Cnbc. Com. She looks years younger than she should. Is it dna or olay . New Olay Regenerist helps take years off your skin age so you can look younger. Who needs dna when you have olay . New regenerist. From desktops to data centers, intel has undergone a revolution with deals, drones and drivers license cars, this giant is looking the to the future. Is now the time to plug in or could this tech shift fall short . Can a tiger change its stripes . Thats the big question with intel. The semiconductor titan is generally, and i think, incorrectly viewed as just a play on the personal computer. Lately, intel has been trying to diversify into different end markets, like the data market, and the autonomous the driving business thanks to its shrewd acquisition of mobileye. Can they grow these divisions fast enough to offset the sluggish pc business. Earlier today, we got a chance to check in with brian crosanich. Few companies have committed to putting as many people to work as you have. How much of is it that President Trump has expressed that issue and youre heeding the call . How much of it is patriotism . Or just best workforce . Weve always manufactured the majority of our products here in the u. S. , still to this day, 70 of what we manufacture is built right here in the u. S. The recent announcement we did back in the beginning of this year was really about, where do we place our next big bet, big factory . And we were going back and forth, but certainly, you know, the push for tax and, you know, american jobs, we it made sense to do it here in the u. S. And if the governments policy were to change, we get repatriation lower, Corporate Tax rate, this would probably make it game, set, match. Could it not be hundreds of thousands, but millions of jobs because of Companies Like yours and where they place people . I think you look at the amount of cash overseas right now with companies, and they want to bring it back. I think were all willing to pay tax. Its just, we want to pay a fair amount of tax. And yes, were going to go to reinvest that money. And its going to be reinvested in factories like we just announced, in stock buybacks, in all kinds of applications. All of those will be job creating and wealth creating for the u. S. Lets talk about the new intel. And i say that because people are still lagging behind. Theyre still saying, as pcs go, so goes intel. Stocks up 20 . Last quarter, people were saying data center wasnt growing that much, but no ones talking about your commitment that you identified on our show several times, internet of things, drivers license car. You made an acquisition that i think really was a state, a state that said, you are going to be the leader in drivers license cars, which i think is the biggest Single Market in the world. You bet. So, first of all, growth businesses. 30 billion of revenue this year from our growth businesses, growing double digits. So when you take a look at it, its now, you know, approaching 50 of the revenue of the company. Its more than 50 of our profit. So it is where the company is. And thats a very big change. Revenues were up profits were lagging, not up more. So all of those are doing very well. But youre right, mobileye was a big stake around Autonomous Vehicles and those are going to be cars, i think, you know, within our lifetime, its going to be things that fly. All kinds of Autonomous Vehicles. And it was really taking a look at it and saying, just like we do in most of our markets, how do you deliver the most value and the most performance for our customer . And you do that by thinking, not just as a cpu company, but you think about it as a complete platform. The complete car. And what well be able to do with mobileye is really deliver what we believe is the best performance for Autonomous Vehicles. Now, what makes it so special, because somebody could look at it and say, 600 people, 15 billion. Talk about the value of it. You always hear this term, Artificial Intelligence. You hear it, you hear it, you hear it. Youre the first person who told me about it. But its all about the software and how that software interacts with the hardware, the cpu. What we make. What were bringing together is what we believe in, and we search the world high and low. The smartest people on this planet for making the software, the arlgorithms for how the cameras, the lightdares, the radars see the world and identify, this is a little girl crossing the street versus a stop sign versus a puppy versus a ball. That is the hard part of this task. Now, at the same time, youre spending 15 billion on that, youre still ensuring your flank. You are not letting your core pc business go, but at the same time, you were more downbeat on it than others. You bet. This is the best time, i think in history, to go out and buy a pc or be in the pc business. The innovation is tremendous. Its just that, we do see that there are other places people are spending their dollars. So i cant come into you and say, this is a Revenue Growth engine, but weve been able to grow profitability and weve been driving innovation with our partners, microsoft, high pressure, dell, lonovo. The products youre going to see over the next couple of years are going to wow you, i think. And theres really no other reason to buy a Computing Device rather than a pc. Still great synergy between pc and the others, you dont have to split it out and buy a cash cow versus the other now that you have mobileye. You bet. This year were introducing products, laptops with zion class cpus so you have basically a server in your lap. If youre going to do those Artificial Intelligence algorithms, you can take your laptop off, write them right there, and actually do the testing. In the 80s, intel got out of d ram as commodities, and i know you do some flash, but is that just boom bust again . Other than the highest end flash, not something you want to play in . Well, flash, like all memory, is still a cyclical market. Its a commodity. And thats not what intels committed to. Absolutely not. So now, why are we in this business . Yeah. Okay. There are two reasons why were in this business. One is on regular flash, we believe we have an architectural and a technical a silicon differential. Something that gives us a lower cost and a better performance. So if you take a look at it, 80 of the flash we sell goes right into the data center. Okay. Theres a synergy, again, when youre thinking about the platform, its tying that flash memory with the cpu, with the but youre not able to get that crazy price increase . We get paid very well. We had 55 growth in our flash business. Theres another reason, though. Youve heard about it. Youve talked about 3d cross points. We label it octane memory. A whole new class of memory that is a mix between dram and nan. Its the speed of dram and the nonvolatility of flash, and its going to rearchitect ow memory is laid out on your pc. I can put that memory in your pc and give you a 20 performance improvement, just through the memory. Thats huge thats like a new cpu to you. And im used to the blue man and intel inside, but youve got a new campaign with lebron, who has been having an unbelievable series. Hows that going . That ones going good. And i good give to our ceo. Its really showing intel in a different light, right . Its really all back to how do we take our compute models and push them into new markets, which were doing quite a bit with sports now and digitization of sports. Have you talked to him . Its a very Different Campaign from the old days. Lebron yes, i have spent time with lebron, and the great thing about lebron, great sense of humor and hes just a great person. Will there come to be a championship that you might see down the road . I hope so. You know . Huge warrior fan. Dont tell lebron that, but fair enough. But youre going to see a lot of sports. Youll see the pga in virtual reality. I think it makes sense. Its time to refresh. Yes. Brians refreshed this company. And i think what hes doing is made it so you have an inexpensive stock with a good yield, that youre being paid for this next initiative, which i think is going to be the king of internet of things and autonomous cars. Because its the one thats most motivated to do it. Thats Brian Krzanich the ceo of intel. Stick with cramer. Announcer after the break w, elon musk on line one. And cramers dialling in. Youre a simulation simulation he doesnt youre a simulation. A 50 chance. Hes no simulation. Cramer takes tesla for a spin, next. Its our little differences, that can make a world of difference. Expedia, everything in one place, so you can travel the world better. You realize the smartest investing idea, isnt just what you invest in, but who you invest with. How do we deal with a company like tesla . If youre an analyst, i think the only way to handle an elon musk Conference Call is to take some mindaltering drugs, so you can really tune in and turn on the whole psychedelic story. I honestly dont know what else to say. No matter what you ask, to matter what you do, the answer is going to be something that blows your mind. And you really dont want to approach tesla with a stonecold sober nature that rigor demands. Because i think youll just look like a total dope. Musk is just that good. Although, not good enough to keep his stock from sinking 15 bucks today. Still, its got to be incredibly frustrating for those people who are trying to draw up financial models that they can get their arms around and ask questions on the call about it. Take, for example, this attempt at a rigorous question by the incredibly sharp tony sag naggy from bernstein. By my math, it looks like teslas new car inventory has increased substantially over the last couple of quarters, maybe 3,500 units or about 50 . Even though short of production and delivery have been relatively constant, he says. So therefore, he wonders, is there demand pressure on the modelx or the s . Is there some sort of cancellation problem . Do we have an inventory overhang . Hey, you got to say to yourself, that seems like a pretty serious issue, right . No, not when you dont know not when youre dealing with musk. Because musk quickly explains that there was confusion look customers about the value of the model s versus the model 3 and that caused some issues, which he says were his fault, because he wanted to name it the model e and ford sued him. Plus, tesla likes to give fully loaded loaners to anyone whose car is in the shop, so he needs all those extra vehicles. Aha of course how can you argue with that . In one fell swoop, he got you to understand that not only is there no demand problem, but what other Company Gives you a loaner thats better than the one you drive . There were so many priceless moments on this call. Like when brad johnson at barclays reminded us a couple of years ago when the stock was at 200, its at 295 now, he asked musk if there was a scenario where the stock could get to 700 market. Musk responds, now im going to want to preface this by saying, of course, i could be completely delusional, but i think i can see a clear path to that outcome. Normally, i could be totally delusional is not a phrase you want to hear from a ceo. But musk has enough confidence to pull it off. How about this one. Tyler frank, seems like a nice fella from bear wants to know, and i quote, elon, you had previously pulled out a target of 1 million cars by 2020. Do you still think thats achievable . Come on, tyler youre talking to elon musk for heavens sake. Not some regular circumspect captain of the industry. His answer, yeah, i do. I think we need to come out with a model y. Some time in 2020 or aspirationally late 2019 and i think a Million Units is most likely combined, maybe more. Elon, why not just say, definitely more, or absolutely more, or at least aspirationally more. Of course, there are fabulous moments where he says the tax credits to the electric car industry are hurting him. And the tax abatements from informed for the gig factory, they arent even real. He aint using no stinking subsidies. Finally, rod lash from Deutsche Bank steps right up and asks about china and if the government will liberalize Foreign Investment and what that means about plans to build a lot of cars for musk there. Why doesnt he just groove a hanging curveball right over the plate. Musk sends it 440 feet into deep Center Bleachers this one. I dont think this is the right time to make an announcement on that front, but i would expect us to define our plans more clearly by end of year, specific to china production. So just in case you thought there was an inventory problem, just in case you thought there was a demand problem, just in case you thought he was offcourse in market cap. Just when you thought maybe he was hyping for production. The one thing you do know, you cant short this stock now. Because by year end, you have to figure that musk will be saying hes going to make a million cars in china by 2020, at least aspirationally. And youll be hit by one of the biggest short squeezes in history. A continual one my take, tesla makes for great theater. And while i think its too risky to bet on this one, musks grandiosity makes it equally risky to bet against it. But, boy, is he a lot of fun. Hey, lets talk to todd in missouri. Todd hey, jim, hillbilly booyah from todd in ozark, missouri. I like that. Caller jim, my stock is oreilly auto parts. Ive got two questions. First, it just hit a 52week low on monday. Is it a buy . I think that o i like auto zone more. Auto zone has a bigger buyback, but i know the group is under a lot of pressure, because the whole auto business is under a lot of pressure. I say stick with it, okay . Im not going to tell you to sell it at a 52week low. How about david in michigan. David . caller hi, how are you . I am good. How about you, david . Zbr caller im good. So my question is, since auto sales are going down right. Is ford still a good buy . Look, if youre willing to sit and wait for at least six months, maybe even a year, you get that 5. 45 yield pinpoi. I want more than that. But its going to be a down year for ford and i dont recommend stocks when the year is going to be down until much closer to the end of the year. And were not there yet. I mean, were only in may. I mean, sure, teslas call was fabulous to listen to. But kind of an alice in wonderland sort of way. You know, red queen. The companys product and man are terrific. But understand, it sure seems like more theater than it does seem like, well, i dont know, like fact. But its working. Still more mad money ahead from cnbc one market, including my sitdown with twilio. It counts facebook, air bnb, and uber among its top clients. But this week it gave investors a warning that sent the stock tumbling more than 25 . Im investigating what happened to this onetime startup star. And a Company Behind some of the plastic in your wallet is engineering a major turnaround. Its not visa, its not mastercard. Ill reveal the name, just ahead. And lets pull out all the stops before i hop on the red eye back home edition of the lightning round. So stay with cramer. Announcer tomorrow, kick off the trading day with squawk on the street, live from post 9 at the nyse. I could use a oh, yeah, arcannic. Ill give you one on that. One of your favorites. Im the only person whos not been invited to the board. I want that board invite. What is that . announcer it all starts at 9 00 a. M. Ian. Business was stagnant. We didnt have the daily insights we needed. So nothing was moving. [ horn honks ] then the experts at cdw worked with us to orchestrate an Intel Powered infrastructure optimized for advanced data analytics. [ horns honking ] now we have the answers we need to make informed decisions. Moving more product then ever before. I forgot my keys. Expedited insights by intel. It orchestration. [ horn honks ] by cdw. At crowne plaza we know Business Travel isnt just business. Theres this. a bit of this. Why not . Your hotel should make it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. Part of the reason for that miss is that one of its top clients, uber, has pulled back some of its business. The Playing Field in tech is always shifting. And innovation is the reigning champ. In silicon valley, it can be tough to roll with the bunches. Can this software newcomer pick itself up off the mat . What the heck just happened to the stock of twilio. While were out in San Francisco, i think we need to check in with cloudbased communications expert, because the stock did just implode after the company cut its numbers. It plunged down to 45 over the next 24 hours, and all i can say is ouch. Twilio helps software to develop Reliable Communications systems via the cloud. And the platform is used by nearly every app that sends you Text Messages from uber to twitter and air bnb. Twilios sales and earnings came in better than expected. The company had to slash its guidance for the rest of the year and it scared off investors. The problem, its largest customer, uber, is changing the wait it handles its communications and offfloating its business to competitors. No one wants to hear that your companys top customers is hitting the bricks. So lets dig deeper with jeff lawson, the cofounder and chairman of twilio. Get a better sense of the quarter and the companys prospects. You didnt say, hey, listen, i cant talk. You said, lets come and talk. First, i have to tell you, i got it wrong. I knew that uber was a great client and i didnt see past that. I couldnt believe that someone could have the luxury of having uber. Why dont you walk us through, with the idea of answering a question thats asked by two Different Research firms. One is, once bitten, twice shy, we were wrong to underestimate the uberists. But then the uber reset creates an excellent buying opportunity. Thats where i want to be. Give us the arc of what happened. Obviously, the news on uber is not one we were happy to share, but we did feel it was the right thing to do. Uber is our largest customer and if you annualize their q4 spend, they were on track to spend 60 million on twilio in the year. And theyre an outlier at that level of spend. And when youre spending that much on one vendor, they wanted to get better control and better visibility into what they were spending. Thats about 17 . About 17 of revenue. So they wanted more visibility and more control. They continued to be a Great Customer. They will be a Great Customer of ours, we believe. But as they start to understand their spend and understand how they want to do it, look at it by geography, were going to help them do that, but theyre a Great Customer. You did say through each quarter, it will be lower. And that will impact 2017 in a negative way . Yeah, because of the size of the spend and how important of a customer they are, when we got an inkling that they might change how theyre thinking about communication spend, we wanted to be transparent and get that out in front of investors. But we do believe, they will continue to be a very important customer of twilios. I want to understand, did they it wasnt like they found a better mousetrap. Thats really important. I dont want to tell people, twilios good, but theres another company out there, and theyre the first one of many that are going to really migrate away from your company. What theyve done, they have a multisource strategy. What theyve essentially said, theyve built the ability to more fluidly move around how theyre thinking about their spend, based on geography and based on their use case. So theyre bringing in several different vendors all around the world to think about how theyre doing this spend. So its very different than saying, oh, theres another vendor that were coming in to replace. Now, that said, there are, you know, dual sources of things, Many Companies have a dual source strategy for key technologies in their company. Some customers do that for reliability and resiliency and things like that, and thats not communications alone. Thats kbass and your second largest customer, whatsapp, has always had this. Its not like whatsapp is going to pug pul the plll the plug. Whatsapp hassed a a multisource strategy for a long time. At that level of spend, it can make sense for a company to look at how they spend in a multivendor way. But if you think about our customer base, after whatsapp and uber, our next biggest customer is only 28 of research. Its a very different game at that level of spend versus everyone else. Theres no way i can say, i can ask to risk uber, that was huge. But otherwise, there was a lot of momentum. You had a lot of new customers. It was an extraordinary quarter until this bad news occurred, right . Obviously, aside from uber, we had a very good quarter. We added over 4,000 new active customers, our best quarter since we went public in that measure. Our base customers outside of uber grew 60 year over year. We added george who of our ceo and he was the ceo of sales force through k5d billion of revenue there. Scaled that company wonderfully. So we feel we had a great quarter. What do you do if you have someone . Theres no way you can call uber and say, youre such a big portion of our revenue, we dont want to do business. And all of us have to recognize that any customer at one point could have a different a dispute or something be different. What choice did you have with uber. You had to roll with the punches until so what happened . Youre right, when a customer grows, and this is part of the power, but a little bit of the risk of our great usage based model that grows customer expansion very strongly. Thats up to us to manage it. A certain level of scale, they make decisions thaur goi s they make. And every company will make their own decisions about how much they want to trade off risk and price and quality. And this substantial undertaking at uber is based on the size of that spend, which got so big. One last question. I want to be sure, the core business, tons of money to fund, right . Were not in a situation where were fine without a big uber client, the cash flow problems or issues, no, right . No, were continuing to invest. We have a leadership position in a very large market. And we feel great about our position, about our product, about our customers. So we continue to invest forward. All right. I want to thank jeff lawson, who came on. Understand, this was a tough week for jeff, but he came on and he talked about it and he addressed headon the problems. Thats why i think jeff lawson is a guy who is worth banking with. Founder, ceo, and chairman of twilio. Read the research and make the decision yourself. Mad money is back after the break. A. It is time, it is time for the last lightning round edition in San Francisco on mad money. Thats where i take your calls rapidfire, i dont know the caller or stock ahead of time. When you hear this sound, then the lightning round is over. Are you ready, skeedaddy . it is time for the lightning round on cramers mad money. Ill start with darren in new mexico. Darren firsttime caller, jim. And thanks for all your lessons. Quite welcome. I have a long position in sh shopify and what i need is a measuring stick on when to expect profits on their balance sheet. Ive got to tell you, theyre doing all the great things i want in terms of Revenue Growth. I dont know, let this one ride. It was a good quarter. Lets go to kenny in connecticut. Kenny . Caller booyah, jim, thanks for taking my call. Of course. Skbl caller i have a question about chemours company, cc. Where do you see it going from here . Were very worried about all commodity and all commodity chemicals. And ive got to tell you, youve had a really good run in cc. I would ring the register on half of it right now. Take it out. Because commodity chemicals are not doing well right now. Lets go to victor in georgia. Victor hello, jim. Thanks for taking my call tonight from south georgia, right above tallahassee. Man, ive been there many times. Caller yeah, man, i know you have. Should i add to or smoke out my position in the altria group. Where theres smoke, theres fire. Its a good one. I want you to hold on to it. Were not done. Were going to dave in illinois. Dave . caller dr. Cramer, congratulations on celebrating the second Year Anniversary at one market center. We love it here the team is great, fantastic. How can i help . Jim, my stock for today is james whitehurst, red hat the sales were fabulous, the deals were great. Whiters continues to do it in the cloud. I want you to stay long it and thank you for the kind comments. Were going to joe in my home state of new jersey. Joe hello, cramer. Thank you for having me on. Good deal. Caller my stock is General Mills. Ive had it for about a year and a half now with modest gains. And with the Food Companies losing some market share, should i sell . No, with i dont want you to this would be selling it too low. We cant do that. Wait for another stock. At one point it was a six today on the ridiculous rumor that david faber killed about kraft heinz. Dont sell it here. And that, ladies and gentlemen, is the conclusion of the are you ready, ski daddy, San Francisco lightning round announcer the lightning round is sponsored by Td Ameritrade. So that i can 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 tonight i want to tell you about one of the most intriguing turnaround stories youve probably never heard of. Im referring to a company ca called Alliance Data systems. The symbol is ads. Its a play on private label credit cards on rewards programs and transactionbased marketing solutions. Or in plain english, Companies Like retailers outsource their loyalty card programs and datadriven campaigns to Alliance Data. From the summer of 2010 through the spring of 2015, this stock rallied a phenomenal move 55 all the way up to 312. As more and more retailers realized that they needed Loyalty Programs to keep customers coming back into the stores, Alliance Data made a killing. Why was this such an attractive business . Okay, when you go to a retailer and pay with a private label card, it allows the merchant to avoid paying interchange fees and thats where visa, mastercard, or american take a cut out of every transaction used. What a business that is. But if they can get you using their own cards on the system run by Alliance Data, the retailer ends up saving a lot of money. At the same time, Alliance Datas Loyalty Cards allow retailers to track your purchases. And then use targeted advertising. Thats another Service Alliance provides to generate more business. Thats why this was such a great growth story for so long. They powered all of these Loyalty Cards. But then the stock began to roll over, midway through 2015, and it quickly lost its mojo. By february of last year, it had fallen as low as 177. Sth this was a stunning 43 decline. But lately Alliance Data has been making a remarkable comeback, unheralded until now. The stock climbing back to 253 as of today. Up 43 from last years lows. So whats been driving this turnaround . And more importantly, could the thing have more room to run . Before we can understand the recent rebound, you need to know what derailed Alliance Data stock a little less than two years ago in the first place. The roots of this sideline go back to september of 2014, when the whaen the company shelled ot 2. 3 billion to acquire a Company Called conversant. Thats a Digital Marketing firm. The idea is that conversant would beef up the Marketing Division, making the Company Better personalized advertising. How important is that these days . And resulting in a major boost to the companys earnings over the following couple of years. Now fast forward to july of 2015, and the stock started getting slammed after Alliance Data reported a seemingly good quarter that nonetheless had real problems under the surface. The issue, epsilon. Thats the name of the companys Marketing Business, and it saw a major deceleration. With its growth coming in at just 4 , management had been forecasting something more like 7 or 8 , really blindsided everybody, even worse. The conversant business they had just acquired saw its sales decline by 9 . Alliance data tried to suggest that this division would start to ramp in the near future when the Company Reported in january of last year, but then it got hit with a whole host of new problems. While the conversant business that they paid so much for did improve, growing at a 6 clip, thats a nice term, the companys other two divisions, private label credit cards and Loyalty Programs saw some softness versus the previous quarter. It was kind of a one step forward, two steps back moment. Even worse, Alliance Data said it expected more credit losses going forward. Management told us that their ka Canadian Business was struggling. In response, the stock plummeted 19 in a single session, falling from 247 down to 199, a bloodbath. And it kept tumbling over the next couple of weeks. No floor. The key tenant of the bear thesis is that alliant data systems turned out to have a lot more risk. We thought it was a Credit Card Company and a rewards company. The majority of its business comes from issuing these private label credit cards, which means theyre actually lending money directly to millions of people, like americas best or capital one. If the company acts like a bank, the bears say its stock should trade like a bank, meaning it should sell at a substantial discount. The banks have run dramatically since the election, but still pretty cheap on an earnings basis. However, i think that perspective, fundamentally misunderstands the real power of this story. Alliance data gets 32 of its sales from epsilon with, the targeted Marketing Business and another 20 from their loyalty one division, where they help other Companies Run the rewards programs. While the Marketing Business had some trouble earlier last year, its been a recovery of late. Alliance data has cut costs aggressively. In a world where more and more advertisers want measurable results, thats a very good thing. Plus, i really think theres something to the idea that Alliance Data is more valuable, because it can take the information from all those private label credit cards it issues and use it to guide their advertising offerings. Thats not something you get a typical credit card issuer. Sure enough when Alliance Data reported are its most recent quarter two weeks ago, the bears got smoked. The Company Posted a nice top and bottom rhine beat and the stock vaulted more than 8 in response. More important, it looks like business is really good. Epsilon, that Marketing Division that hurt so bad, saw its revenues increase by 7 year over year. They finally have gotten past the problems from the conversant deal. At the same time, Alliance Datas private label Card Division is totally on fire, up 22 . Credit losses are expected to be flat for the full year. There goes that bear thesis. You might think a business that relies on retailers would be in trouble, companies had a lot of success expanding into all sorts of digital channels, and thats where the consumers are spending their money these days. In fact, Alliance Data has made it easy to apply for the retail customers to sign up new card members online. The application process only takes a few key strokes. Finally, management said their Loyalty Program business should pick up speed in the second half. That would be every cylinder. Put it all together, and this is one of the strongest quarters from Alliance Data in recent memory. For the first time in more than a year, it feels like company has all its deduction ucks in a. And it sure didnt hurt they announced a 500 million buyback on top of the buyback from last year. People have a lot of trouble figuring out how to buy this one. Is it a bank or a Marketing Company or an analytics play. Alliance data else for less than 12 times next years earnings. However, when you consider that Alliance Data has a 12 longterm growth rate and were back to that average growth race, thats much better than americas best at 7 . Well, what the heck . Its clear this is a cheap stock. Throw in the fact that Alliance Datas credit Card Division alone had some of the best growth in the industry, and i think its worth buying for that business. The improvement of the companys loyalty and marketing segments, theyre icing on the cake. Heres the bottom line. Yes, ads, Alliance Data systems has come roaring back from its lows earlier last year, but the worries that crushed the stock back then turned out to be overblown. I think this wildly misunderstood stock could have a lot more, not a little, but a lot more upside. Stick with carole looking for balance in your digestive system . Try align probiotic. For a nonstop, sweet treat goodness, hold on to your tiara kind of day. Get 24 7 digestive support, with align. The 1 doctor recommended probiotic brand. Now in kids chewables. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. No, with i dont want you to sell facebook. I told you this would happen. It ran up and then for a couple sessions, it goes down. No need to pull the trigger tomorrow. Youre going to get another chance. This is an official sendoff booyah and our last show from our west coast home here at one market. I want to thank you all for another powerful week and boy, i just love it here as i like to say, theres always a bull market somewhere and i promise to try to find it just for you right here on mad money. Im jim cramer see you tomorrow okay, lets go. Find your awesome with the xfinity x1 voice remote. Thats amazing where entrepreneurs seeking an investment will face these sharks. If they hear a great idea, theyll invest their own money or fight each other for a deal. This is shark tank. A stayathome mom who began her business in order to support her family. My name is kiersten and i live in los angeles, california, with my husband and my 12yearold son and my 8yearold daughter. I left my job to stay home with my kids, and then my husband lost his job, and so we desperately needed something to help pay the bills