Unstructured data is often called machine data, or the logs created by servers as they go about their business. Machine data create a treasure trove of useful information, but only if it can be read, aggregated and analyzed, which is exactly what Splunk's software does. Splunk's customers can detect fraud, analyze security threats and prove that their in compliance all by using Splunk software. Cramer said that big data is a $30 billion opportunity for Splunk, and the company is aggressively expanding its sales force to take a leading position. It reported a 50% rise in revenue last quarter with an incredible 90% gross margin, he added. It's no wonder shares are trading at 12 times sales, even though it is not yet profitable. Cramer said he's a believer in the Splunk story, but only for speculation given its extremely high valuation.
Know Your IPO
In the "Know Your IPO" segment, Cramer commented on the much-hyped Twitter initial public offering announced Thursday. He said his only hope is the underwriters for Twitter bring a fair IPO to market and avoid the fiasco that was Facebook's ( FB) IPO. Everyone will want a piece of Twitter, but as of now, very little is known about the company and what its true value really is. In the meantime, however, Cramer said he's a fan of FireEye, a cyber security firm that will be coming public under the ticker "FEYE." The company plans to offer 14 million shares between $12 and $14, which would make it a $1.5 billion entity trading at 13 times sales. That's far from cheap, Cramer admitted, but the average first-day gain on a software IPO in 2013 has been 56%, which makes FireEye worth a look if investors can get in on the deal. Also on the "coming soon" list is BenefitFocus, a cloud software company. These shares are expected to price between $21.50 and $24.50 a share, pegging this company's valuation at 6.7 times sales. This, too, is pricey, said Cramer, but is also worth trying to get in on.
In the Lightning Round, Cramer was bullish on Starbucks ( SBUX), Hexcel ( HXL), BE Aerospace ( BEAV), Cheniere Energy ( LNG) and EOG Resources ( EOG). Cramer was bearish on Pembina Pipeline ( PBA), Northern Tier Energy ( NTI) and Valero Energy ( VLO).
In the "Mad Mail" viewer feedback segment, Cramer followed up on a few stocks that stumped him on earlier shows. He said that CompuGen ( CGEN) needs to cool off after a recent 68% move to the upside. The stock of 1-800-FLOWERS ( FLWS) also didn't get Cramer's recommendation because he said that stock was already fairly valued. Cramer told investors to cool it with Immunomedics ( IMMU), a stock that's doubled so far in 2013, but he was warming up to Grana Y Montero ( GRAM), the engineering and construction giant from Peru. When asked about Boeing, Cramer said he still liked the stock, as he does Buffalo Wild Wings ( BWLD). He is not a fan of Teva Pharmaceuticals ( TEVA), however, reminding viewers that he hasn't like this stock in quite some time.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer admitted the markets have him a little perplexed at the moment. On one hand, there's another government shutdown looming just a few weeks from now. But on the other hand, there's a rampant enthusiasm for stocks that he hasn't seen in years. That was certainly the case with Ulta Salon ( ULTA), which shot up 17% in a single day on a better-than-expected quarter. Cramer said he always roots for stocks to go higher, but 17% in a single day tells him that we're near a top and things are getting "frothy." But the market isn't rewarding discipline or caution at the moment, it's taking stocks like Ulta, and many others, sharply higher despite the Fed and Washington and Syria and the many other signals that should be sending investors running for the hills. That's why Cramer said he still recommends investing with caution, but not selling everything just yet. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.-- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC