In the real world, there's more than one way to value a company, Jim Cramer reminded his Mad Money viewers Monday. While many on Wall Street simply value stocks based on earnings, the real value of a company may be in what it's worth to other CEOs and entrepreneurs as a takeover candidate.
Case in point: today's hostile bid by Broadcom (AVGO) - Get Report to purchase rival Qualcomm (QCOM) - Get Report . Both companies make chips that are not only in Apple's (AAPL) - Get Report iPhone, but also in a host of other devices, from planes to cars to the Internet of things. As a combined entity, not only would these two silicon giants save money, but they'd also have more bargaining power.
The same is true for the rumored talks between The Walt Disney Co. (DIS) - Get Report and Twenty-First Century Fox (FOX) - Get Report , news that sent Fox higher by 8.9%. With so many companies fighting in the entertainment space, a merger with Disney makes a lot of sense.
So too does the tie-up between disk drive maker Marvell (MRVL) - Get Report and Cavium (CAVM) , which sent shares surging 9.1% and 11.9% respectively. Transforming from a disk drive maker to an integrated technology play is a notion Wall Street loved.
So while many see the bull ready to die of old age, Cramer said he views the market from the viewpoint of takeover potential. Using that lens, there is a lot more value left in the stock market than you might think.
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Executive Decision: Salesforce.com
Benioff said that Salesforce was the fastest software company to reach $10 billion in sales and they aim to be the fastest to $20 billion by making complex technologies, such as artificial intelligence, accessible to everyone.
He said this is an amazing time for technology, with advances like AI, autonomous driving and advanced genetics all hitting us at once. We must now decide whether to use these advances to divide us or unite us as a society, and Salesforce chooses united, he said.
When asked why Salesforce is so successful compared to its entrenched competition, Benioff explained that Salesforce simply moves faster than legacy products so their customers can move faster as well. That's why there are 3.3 million jobs in the Salesforce economy, and growing.
Continuing his interview segment with Marc Benioff, Cramer also spoke with Diane Greene, CEO of Google Cloud, and Sridhar Ramaswamy, senior vice president of Ads & Commerce, to talk about Salesforce's new partnership with Google and its parent, Alphabet (GOOGL) - Get Report .
Greene said that Google's partnership with Salesforce is about bringing their customers solutions that they could not, working separately -- including integrating Google's gSuite of productivity apps right into the Salesforce platform.
Ramaswamy added that the No. 1 request he's received from customers is the ability to gain a holistic view of their customers. That's why Google is making services like Google Analytics available inside of Salesforce, so customers can marry advertising data with Salesforce's customer data. Everything works for the benefit of their customers, he added.
When asked about the resurgence of advertising on the web, especially in Europe, Ramaswamy said that Google's mission has always been to deliver the best answers to customers, and many of their recent initiatives are making that happen.
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Executive Decision: Paypal
Schulman said the digital payments market is exploding as more consumers go digital in all aspects of their lives. That's how PayPal was able to deliver 31% EPS growth this quarter. With Venmo, PayPal is reimagining how money can be managed and moved, and there are still many more changes coming over the next five years.
PayPal is building a great, enduring company for the long-term, Schulman added, which is why they take their time understanding their customers. He said there's never a rush to monetize their products just for short-term gains. PayPal is a neutral platform that partners with everyone, he said, from banks and tech to social platforms.
Cramer reiterated his recommendation of PayPal.
In his "No-Huddle Offense" segment, Cramer said investors may be focused on the rally in tech, but the industrial rally continues in earnest, with cyclical companies like Boeing (BA) - Get Report seeing unprecedented demand for planes that's lifting everyone from Honeywell (HON) - Get Report to United Technologies .
These stocks should've never been so low in the first place, but when companies like Deere & Company (DE) - Get Report have cut costs so aggressively, their earnings can now explode with increased demand.
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At the time of publication, Cramer's Action Alerts PLUS had a position in AVGO, AAPL, GOOGL.