Jim Cramer's 'Mad Money' Recap: Look West, Investors, to Silicon Valley

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Looking for investments that can escape the gravitational pull of the markets? Jim Cramer told his Mad Money viewers Tuesday they should turn an eye towards Silicon Valley, where innovation trumps fears of the global economy and even fears of the Federal Reserve.

Kicking off a week-long series from San Francisco, Cramer told viewers that with the advent of sector-based investing and exchange-traded funds, the markets move in unison a lot more often than they should. That means opportunities are created when the market frets over interest rates or the latest banking scandal.

Stocks like Amazon.com (AMZN) , Facebook (FB) and Apple (AAPL) , the latter two of which are Action Alerts PLUS holdings, are defining their own futures, Cramer said, giving customers what they need before they even know they need it.

That's why companies like Salesforce.com (CRM) continue to thrive. It has evolved from cloud computing to mobile and social and with its most recent acquisition, into interpreting data with advanced machine learning.

Think of these companies as mechanizing your horse-based army so you can compete in a world of tanks, Cramer said.

Executive Decision: Brad Smith

For his "Executive Decision" segment, Cramer sat down with Brad Smith, chairman and CEO of Intuit (INTU) , the tax and accounting software purveyor with shares that are up 6% since Cramer last checked in back in April.

Smith said the odds are stacked against small businesses, but studies show that if a small business uses an accountant they are far more likely to survive. That's why small business has become a mainstay at Intuit and why nearly two-thirds of its small business customers have embraced the cloud versions of Intuit software.

When asked about those small businesses that aren't doing their accounting in the cloud, Smith said that many are still using paper, pencils and a shoe box full of receipts.

No small business owner wants to be stuck doing accounting, they'd rather be working on their businesses. That's why Intuit does its best to make accounting disappear as much as possible, he said.

When asked about TurboTax, Intuit's other highly successful franchise, Smith said TurboTax now has 65% market share, with 70% of those accounts paying absolutely nothing to file their taxes. The strategy is simple, Smith explained: start the relationship early, for free, and when people get older and their taxes get more complicated, upsell into more robust products.

Cramer continued his recommendation of Intuit.

What Mark Cuban Thinks

In a special interview, Cramer sat down with billionaire and Shark Tank star Mark Cuban, a man Cramer called the "real deal" when it comes to investing.

Cuban said the American dream is alive and well, and if he can help young entrepreneurs in any way, he does. Everyone has the will to win, Cuban noted, but only those with the will to prepare are those who actually do win. He said entrepreneurs must know their businesses better than anyone else, especially the competition.

One of Cuban's recent investments is Alyssa's Cookies, where he took a $75,000 investment in a guy making cookies out of his garage and turned it into $10 million in sales.

When asked about the next big thing, Cuban said he's making big investments in deep learning and machine learning. With so much data being generated every day, the key will be making sense of it all.

Finally when asked about this year's elections, Cuban said he doesn't mind Donald Trump taking a $915 million loss on his taxes, he just wants to Republican nominee to explain his failures and tell the American people what he's learned from those failures.

Executive Decision: Aneel Bhusri

In his second "Executive Decision" segment, Cramer also sat down with Aneel Bhusri, co-founder and CEO of Workday (WDAY) , the cloud software provider with shares up 13% so far in 2016.

Bhusri touted his company's latest Workday Rising conference, which had over 7,000 attendees, as another milestone for his company. He said Workday introduced products at the conference and everyone was able to learn more about everything Workday has to offer.

One of those new products was a student administration system, which will help universities manage financial aid and help students schedule their classes from a mobile application. Between all of Workday's businesses, Bhusri estimates Workday's total addressable market at $65 billion.

When asked about what's driving his business, Bhusri said that after migrating from mainframes to a client server model, businesses are now migrating from servers to the cloud and that leaves a lot of room for Workday to grow.

Lightning Round

In the Lightning Round, Cramer was bullish on CVS Health (CVS) , American Water Works (AWK) , Urban Outfitters (URBN) , L Brands (LB) , UnitedHealth Group (UNH) and Kroger (KR) .

Cramer was bearish on LifeLock (LOCK) , CVR Energy (CVI) , Xerox (XRX) , WhiteWave Foods (WWAV) , Texas Roadhouse (TXRH) , Abercrombie & Fitch (ANF) and Centene (CNC) .

Executive Decision: Gary Steele

In a third "Executive Decision" segment, Cramer sat down with Gary Steele, CEO of Proofpoint (PFPT) , a cloud-based cyber security company.

Steele said individuals are under attack every day from cyber criminals. But with so many high-profile breaches in the news, many people are tired of hearing about it. Businesses, however, have prioritized security and have no choice but to make up for lost time.

Proofpoint helps companies stop impostors from executing phishing attacks that look like the real deal to unsuspecting customers. The company also partners with many of the major cybersecurity players.

Proofpoint can even help companies in the social media space, ensuring that posts and tweets from impostors are not going viral.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL and FB.

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