Mad Money

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.


"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.

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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.

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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.

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