Mad Money

Cramer Remix: The No. 1 play in cybersecurity

Cramer: Here's the No. 1 play in cybersecurity
Cramer: Here's the No. 1 play in cybersecurity

Jim Cramer knows from his years of investing on the stock market that if a theme is strong enough, money will flood into it.

Right now Cramer sees two powerful industries, cybersecurity and the organic and natural food trends, with money going right into whatever investments it can find.

A perfect example of this to Cramer was when Palo Alto Networks reported its quarter on Wednesday night. While this stock may seem expensive to some, Cramer thinks it deserves to be expensive. As the premier, best-in-breed of cybersecurity companies, it stunned investors with 55 percent revenue growth and 8 percent higher sales from the previous quarter.

This all signals nothing but good news for Cramer.

"This may be the single hottest stock I follow," the "Mad Money" host said.

About a month ago, Palo Alto's CEO Mark McLaughlin shared with "Mad Money" that the topic of cybersecurity has recently become a board of director's level issue. Meaning, the board members are spending an increasing amount of time thinking about how to address the problem of hacking and cybersecurity.

What does this mean? More attention to cybersecurity and a growing trend in business. Cramer loves what Palo Alto has to offer, along with CyberArk,FireEye, Fortinet and Cisco.

"When you've got a shortage of stocks to play a particular theme, the pure plays can levitate for a very long time," Cramer said. (Tweet This)

Read More Cramer: The single hottest stock I follow

Takeovers plow money, often borrowed money, into the market, which has the derivative effect of creating more demand for stocks when you ring the register on targets, which I am now urging you to do.
Jim Cramer
Glow Images Inc. | Getty Images

Right now, Cramer also sees companies at war all over the place. They have two choices, either get involved in a deal to kill competition and gain customers or be held hostage by events overseas.

"A war for the inside of your cellphone, a war for the connections to your home or your car or even your watch, and we're witnessing an unprecedented merger frenzy that's roiling the entire market," the "Mad Money" host said. (Tweet This)

The negatives overseas are something that has been floating around for ages, yet they have an uncanny ability to overpower stocks. And when issues such as the Greek situation and a slowdown in China take hold of stocks, the whole market can be brought down.

But the No. 1, most important bullish force in the market right now is takeovers. In Cramer's opinion, giant deals such as Avago's $37 billion acquisition of and Charter's $56 billion purchase of Time Warner Cable are strong enough to breed positive sentiment that can lift stocks up to new levels.

Cramer stressed the importance of merger-and-acquisition activity is for the stock market, stating, "Takeovers plow money, often borrowed money, into the market, which has the derivative effect of creating more demand for stocks when you ring the register on targets, which I am now urging you to do."

Read More Cramer: The No. 1 way to make money right now

One stock that has stalled recently is Popeyes Louisiana Kitchen. What the heck happened?

This well-run fried chicken chain has given investors some serious gains over the long term, with its shares more than doubling last year. However, the stock peaked at $66 in January and is down eight points from its highs.

On Wednesday night the company reported in-line revenues and earnings and beat estimates by 4 cents from a 54-cent basis.

Cramer thinks this company has fallen victim to two major trends happening. First is the price of gasoline, which has hurt restaurant stocks. And second, are higher poultry prices due to the recent outbreak of bird flu in the U.S.

Could these trends be holding the stock back? To find out, Cramer spoke with Popeyes Louisiana Kitchen CEO Cheryl Bachelder.

"We are about long-term, steady, consistent, reliable performance, and I believe the market will reward us over time," Bachelder said.

Gary Kelly, CEO of Southwest Airlines
Jason Janik | Bloomberg | Getty Images

Last week, when Cramer spoke with American Airlines' top exec on "Mad Money," he had no idea that the interview would send the entire airline group plummeting the next day. Whoops!

That was exactly what happened when Cramer spoke with American's CEO Doug Parker, who shared his concerns regarding the large amount of capacity being added into the industry by his competitors. Why was he worried? Because excess capacity means bloody competition in the airline industry.

"Some airlines are talking about 8 or 10 percent growth rates. They can't believe they have that kind of demand growth, so what they must believe is that at these economics they can fly more than they used to fly. Look, I don't think that's right," Parker said.

On the same day of the American Airlines interview, Southwest Airlines CFO Tammy Romo confirmed that her airline's capacity would increase by 7 or 8 percent this year. This sent the stock down 9 percent in a single session and it has gone lower since.

Do investors need to be worried about increased capacity, or is this an overreaction to the news? To find out, Cramer spoke with Southwest Airlines CEO Gary Kelly.

"Our competitors are always complaining about Southwest, and we're just going to continue to focus on running a great airline… So our plans have not changed," Kelly said.

Read More Southwest Airlines CEO: Ramping up the competition

Another lesson that Cramer reiterated to investors, is to be careful when investing in a newly public company. Yes, many IPOs can generate some serious cash flow out of the gate, but that doesn't mean the gains will last.

To demonstrate a situation of what can happen with a bad investment on a new company, the "Mad Money" host highlighted Castlight Health.

This cloud-based provider of healthcare related software went public a little over a year ago. Cramer saw serious red flags from the beginning, as the stock was valued at 31 times 2014 numbers. That means it was more expensive than both Salesforce and Workday.

Ultimately, the numbers quickly deteriorated with the company, and the stock was downgraded. In Cramer's opinion, this one was too risky from the start as it was too expensive.

In the Lightning Round, Cramer gave his take on a few callers' favorite stocks:

Under Armour: "I think everyone is worried because it has stalled. It is shaking out of the weak hands, and then it is going to have another move. That's the way it trades, we've got to get used to it. It may not rally instantly, it waits for the next quarter."

Opko Health: "I'm a believer that no one ever got hurt taking a profit. When you're up that much I need you to take out your cost. Take out the house's money and let the rest run. Phil Frost is a genius, we had him on the show, and he's been right and we've been right."

Read MoreLightning Round: May not rally instantly—but just wait