×

Cramer Remix: The shocking mystery behind Facebook & Apple

As investors rush to top-performing technology stocks in the peak of earnings season, Jim Cramer looked into their quarters to see what is driving them higher.

Facebook's stock has taken off ahead of its Wednesday earnings report, which worries the "Mad Money" host because the social media giant tends to report artificially weak quarters because of such runs.

Cramer said that part of the reason for Facebook's perceived earnings weakness is CEO Mark Zuckerberg's philosophy: not only does he openly spend to get ahead, but he typically puts his app's users above its advertisers and investors.

"Of course, we know that Zuckerberg's philosophy isn't all that different from Apple's view: you build the best product and user experience and they'll keep coming back and the investors will stay with you," Cramer said. "I'm always surprised that people consider this philosophy such a mystery."

FANG (Facebook, Amazon, Netflix and Google) apps on a smartphone.
Adam Jeffery | CNBC
FANG (Facebook, Amazon, Netflix and Google) apps on a smartphone.

For more on where the threats lie in the technology industry, Cramer interviewed Fortinet CFO Andrew del Matto to hear about what the cybersecurity company is tackling day to day.

"The hacks continue. The criminals stay out there. And there needs to be more spending," del Matto said Monday. "It's interesting, most businesses think they're competing with other businesses, but in cybercrime, you're competing with other countries, you're competing with people in a garage somewhere, and they're just spending a lot of money and there's a lot of upside for them."

As Fortinet continues to offer buffers against cyberattacks and work with organizations like NATO and Interpol to expand their defenses, del Matto said ransomware is top of mind for Fortinet's high-profile clients.

"They want to get whatever they can because maybe they use it against you, maybe they hold you hostage with it, and maybe they monetize it in some way by pretending they're you," he said.

And as attackers become more sophisticated, del Matto said the priority should be to stay informed.

"The idea is that companies and governments and people really need to think architecturally about how they protect themselves, get a lot of training, and keep themselves up to date about all the threat factors," the CFO told Cramer.

GrubHub
Jin Lee | Bloomberg | Getty Images

The stay-at-home economy is undoubtedly flourishing, so Cramer turned to one of its biggest benefactors to see how it is staying afloat: online food delivery giant Grubhub.

Cramer saw the company's earnings beat as a sign on a "huge cultural sea change" upheld by pizza powerhouse Domino's, which saw gains across the board in the first quarter, including a 10 percent bump in same-store sales.

Not only does the "Mad Money" host like its scale, which makes restaurants pay more for exposure on the app, but also how the service pushes restaurant chains to stop relying on their best gross margin item — alcohol — at the behest of customer convenience.

Cramer also looked into a recent IPO of "digital knowledge play" Yext, a cloud-based software platform that helps companies sync information like their location and phone number across 100 services including Google Maps, Facebook, and Yelp.

While any mention of the cloud can excite investors, the "Mad Money" host warned that people should not get too excited about the new tech play.

"While the stock may be hot since it came public, the product is not what you'd call sexy, not revolutionary, or even moderately disruptive," he said.

In fact, Cramer could see Yext falling into serious trouble if any giant, cash-flushed player like Google or Amazon tried to come after its business.

"If they want this business, I think they can make a grab for it, and it would probably cost them a lot less than outright acquiring the new stock that is Yext," Cramer said. "Take a pass."

Marc Benioff, CEO of SalesForce.
Adam Jeffery | CNBC
Marc Benioff, CEO of SalesForce.

Finally, Cramer sat down with Salesforce CEO Marc Benioff for a deeper look at one of the CEO's main goals: job creation in the United States.

After meeting with President Donald Trump with the goal of spurring job growth, Benioff started working on boosting his own company's gross domestic product.

Benioff's goal is to create five million apprenticeships, or training jobs, within the Salesforce network, and the CEO told Cramer on Monday that he knew growing GDP was the way to reach that goal.

"That's what we call our Salesforce economy," Benioff said. "Two out of the top 10 jobs in the United States that are the best-paying jobs are Salesforce administrators and Salesforce developers, and so we're trying to create a $400 billion Salesforce GDP."

By staying under the Salesforce umbrella, apprenticeships not only fill the company's key positions with clients around the world, but start a wave of retraining that Benioff hopes will reach millions of workers.

In Cramer's lightning round, he rattled off his take on some caller favorite stocks, including:

Brooks Automation: "I like it, I like it, I like it. It's part of the semiconductor cohort that I think is on fire. It's a good one."

Mitek Systems: "Imaging software, very good. I'm going to steer you toward a cheaper one, I'm going to steer you toward HPE at $18. That is the one to own. I think that you've got less downside, more upside."

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

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