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NEW YORK (
) -- The future of the American economy isn't coming from Washington, D.C., it's coming from the cloud, Jim Cramer said on
That was Cramer's takeaway from his time at the annual DreamForce conference in San Francisco yesterday. He said today that while the markets are seemingly held hostage by Obamacare,
tapering and the next government shutdown, companies at the other end of the country are embracing the cloud and are turning problems into solutions.
Cramer said he has no idea just how many companies were building on the
platform to help businesses with everything from customer relations management to HR and payroll and beyond. The world is moving in real time, he said, and Salesforce is helping companies keep pace.
That bodes well for not only Salesforce, said Cramer, but also for dozens of other companies embracing the cloud including
Cloud companies do well not only in good times but also when the economy is shrinking because they help companies save money and streamline operations when they need it most. No wonder this sector continues to buck the trend and defy Washington -- they truly are the future of the American economy, said Cramer.
Executive Decision: Aneel Bhusri
In the "Executive Decision" segment, Cramer sat down with Aneel Bhusri, chairman, co-founder and co-CEO of
, the cloud-based human capital management platform that's seen its shares soar 163% since its initial public offerint in October 2012.
Bhusri said that Workday is the culmination of cloud, mobile and big data all coming together. His company is moving full steam ahead to grab as much of the $40 billion market as it can. He noted that history has proven technology shifts every 10 years or so, and those with the head start reap most of the rewards. That's why Workday loses more deals to companies choosing to do nothing than companies choosing a competitor.
Bhusri also noted that in today's new economy the most innovative ideas stem from small teams of 20 to 30 engineers and a blank sheet of paper, not from legacy companies with teams in the hundreds or thousands. That's why many of the cloud companies work together instead of competing with each other. Everyone is innovating, everyone is providing value in their own little niche, Bhusri said, and it's always the small guys taking on the big establishment and not each other.
Cramer said Workday is just another example of how cloud companies are some of the only ones able to post the kind of growth that Wall Street craves.
Executive Decision: Jeremy Stoppelman
For his second "Executive Decision" segment, Cramer sat down with Jeremy Stoppelman, co-founder and CEO of
, the online rating and review Web site that's seen its shares triple in 2013 as the company sets itself up for long-term growth.
Stoppelman said Yelp was built for the mobile world because there's no better time to receive relevant, targeted ads than when you're on your phone looking for a good restaurant near you. That's why nearly 40% of Yelp's current ads are already mobile and why that number is increasing all the time.
Stoppelman admitted that back in 2004 he was worried whether the Yelp concept, which began in San Francisco, would take off in other cities. Now, years later, Yelp operates in over 100 cities around the globe and users everywhere are in love with the service. When asked whether businesses tolerate bad reviews, Stoppelman said that, overall, many businesses provide great service for their customers and those that don't just have more incentive to try harder.
Turning to Yelp's future, Stoppelman said his company is exploring other verticals, including food delivery reviews as well as reviews for doctors and dentists. There are a lot of areas where Yelp makes sense, said Stoppelman. Cramer agreed, saying he loves Yelp's growth trajectory.
In the Lightning Round, Cramer was bullish on
Hartford Financial Services
Las Vegas Sands
Cramer was bearish on
SandRidge Permian Trust
Executive Decision: Jim Lillie
In a third "Executive Decision" segment, Cramer sat down with Jim Lillie, CEO of
, home to over 100 household brands including Mr Coffee, Rawlings, Sunbeam and, most recently, Yankee Candle. Shares of Jarden are up 51% over the past 13 months since Cramer last spoke with Lillie.
Lillie started off by commenting on Jarden's acquisition of the once-publicly traded Yankee Candle, saying Jarden was able to come in at the right time and the right price to get the company, which was already a good brand but is now a better one under his company's management.
But the main thrust of Jarden's growth has been innovation. Lillie noted that even a brand like Crock-Pot is innovating with personalization options and new products for those who frequently entertain at home. Other innovations include reinvigorating Ball jars, which families are using to preserve healthy and organic foods, and Sunbeam, which has added many items for pets including water purifiers and hair clippers.
All told, Jarden now has over 140,000 stock-keeping units among its brands, a metric that shows just how unique the company is, Cramer said.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer weighed in on
, which has been embroiled in an emotional tug-of-war between those who love the cars and those who hate the stock.
How will Tesla fare over the long term? Cramer said that only time will tell. If the company can meet its production goals, shares will soar. But if the recent car fires dent production and end in a recall, shares are valued far too high.
This push and pull of competing investors can be seen daily, as nearly a quarter of the company's outstanding shares are held short, leaving a tight supply for those who want to buy more. That leads to the wild swings we're seeing in the stock, Cramer explained, which is why he's watching the excitement from afar and not engaging in the battle.
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-- Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.
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