GO
Loading...

Software stock grabs Cramer’s attention

In the past 3 months shares of TIBCO have advanced more than 25% as companies turn to their software to improve efficiency.

"TIBCO is a classic big data play that's all about helping companies build the most useful software infrastructure, providing business optimization software, and big data analytics that allow its clients to sift through massive quantities of information in order to figure out what their customers want," Cramer explained.

Confused?

"For example, TIBCO is behind Amazon's incredible ability to predict what books you might want to buy," Cramer said.

TIBCO reported results on September 19th and commentary suggests the future is promising.

Image Source | Getty Images

Tibco said its contract pipeline for the next year was robust and its Americas business was "back to strength".

Deal size also improved during the latest reported quarter. For deals worth $100,000 or greater, the average was $692,000, an amount not seen in over six quarters, Chief Operating Officer Murray Rode said on the call.

Also, license revenue rose 6 percent to $105.2 million in the third quarter.


----------------------------------------------------------
Read More from Mad Money with Jim Cramer
Why is market relatively buoyant?
Sprint CEO: We're running out of new iPhones
Cramer: Look who's unlocking value
----------------------------------------------------------

Now make no mistake, the stock is not cheap. "It sells for 20.6 times next year's earnings estimates with an 11% long-term growth rate."

However, Cramer thinks it belongs on your radar if for no other reason than, "The stock initially jumped almost 7% on earnings but then pulled back to the exact same place where it was before the quarter was reported.

If you like the story, "you get a terrific quarter for free. And it was the most optimistic conference call of any I heard from tech this quarter."

*Reuters contributed to this report.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Symbol
Price
 
Change
%Change
TIBX
---
AMZN
---

Featured

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.