Cramer: Never bet against this trend

(Click for video linked to a searchable transcript of this Mad Money segment)

Shrewd investing involves a lot of work. Not only must you determine what to bet on, you must also determine what never to bet against.

And Cramer says never bet against hot trends.

Right now, the Mad Money host thinks 'the cloud' is about the hottest trend going. "Especially when it's integrated with social offerings," Cramer said.

And Cramer thinks few companies are better positioned to leverage the trend than Marketo, a company that just came public earlier in 2013.

"Marketo's cloud-based software helps its clients streamline their marketing decisions and build long-term relationships with their customers, including through social media," explained Cramer.

Although shares are up more than 40% since the IPO, which was less than 3 months ago, Cramer would not advocate shorting the stock.

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Looking at the latest numbers, Cramer thinks they illustrate just how quickly Marketo is winning business.

Marketo added 225 new customers in the quarter, including its largest customer to date, which it didn't identify but describes as a large technical institute. It now has 2,592 customers.

Also, "Revenues were up 62% year over year and billings up 66%," Cramer said with enthusiasm.

In fact, earnings absolutely wowed the Street with results blowing out expectations. Specifically, Marketo reported a per-share loss of 26 cents minus items, far ahead of the 49-cent loss consensus estimate of analysts polled by Thomson Reuters. It also raised its guidance for the year.

If anything, Cramer thinks the path of least resistance is higher. Nontheless, Cramer never likes to chase a stock up 40% in two months.

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Therefore, he suggests putting this stock your radar and waiting for opportunity.

"Long-term, I believe Marketo will go higher," Cramer said.

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