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tv   Mad Money  CNBC  November 18, 2013 6:00pm-7:01pm EST

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>> starting to shape up. >> i can't tell you. see you back here again. in the meantime, mad money starts right now. starts right . my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." a lot of people want to make friends, try to make you some money. and i'm looking for cutting edge ways to do it. out here at the 2013 dream force conference in san francisco. my job's not just entertaining but to educate and teach. so call me at 1-800-743-cnbc.
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to make money, or not to make money. that is the question. no, not for you the investor. even if you didn't quite prevail, dow only finishing up 14 points, nasdaq falling .93%. no, i'm talking about the importance or lack thereof of making money if you're a younger company. one that's just coming public, developing something new, innovating and perhaps trying, yes, to take over the world. i want to focus on this concept because of where we're coming from today. the annual dream force conference formed by mark ben -- more than 130,000 faithful journey in what some would require, yes, a woodstock for entrepreneurs and innovators. technology no differently than the internet pioneers did before them and the personal computer creators did way back in the late 1980s. turning the tech world upside
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down. then again maybe it's just a -- a woodstock for geeks. anyway, we need to go deep into the dream force psyche, not just because it's a celebration in the new world one dominated by the holy trinity of social, mobile and cloud, but mainly because it's about making some money. i don't want to say it's totally lost on people, but i will point out that this is a revolution that's been embraced far more by the businesses using disruptive technology you'll hear about and not you, not individuals who are enjoying the fruits of lowers costs. but these are not amazon or priceline, two companies i like very much. although priceline only valued by traditional metrics. you need to know that context here. because by and large the companies you'll be hearing from have alluded many of you or at least their concepts have and their missions have. their missions seem to befollow people. when most of us think of tech, what do we? oracle, microsoft, cisco, intel, ibm. we don't think of
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orr workday or viva. we think of the former being cheap and laters being ridiculously overvalued. and on traditional metrics that's probably true. but sometimes we forget why we invest in tech in the first place. we do not do it for cheapness. we do not do it for dividends and we certainly don't do it for buybacks. we do it for growth. unfortunately the companies we traditionally think of for tech often really vestiges in trench players at least in the uninformed you don't over 130,000 people coming to dream force to see same old same old. this isn't about a new way to use a personal computer. it's not about the semiconductors, it's about how to use social, mobile and cloud to help your own business grow. now, i totally get why you might think it's one big dangerous bubble. there is an element of who are these guys, what do i care some company's helping sales reps sell more drugs or more food or whatever. who wants to invest in a company that helps businesses manage
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travel. do i really want to be involved with some outfit that's a leading provider of enterprise cloud based or hcm? these are the companies with 30% to 40% growth rates that the big mutual funds crave. they're the ones that you can piggyback on and stay in touch with and make the biggest money from. today, the nasdaq floated with levels not seen since the bubble burst in 2011 before pulling back hard in the afternoon. you can view one of two ways. the whole thing can be done in a prism. either the market's totally overheated again and could collapse in a moment's notice. or perhaps a whole new group of companies is now excelling and that's where the money is really being made. you know what, i proudly endorse the latter view. even as i know it's controversial and considered to be sacrilegious to the orthodox of traditional stock valuation, most of the people who criticize this view and, well, criticize me, are probably more at home with an oracle, ibm, microsoft,
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intel. that's fine if you want to be at home with companies that don't make you a lot of money. what you have seen in the performance of these stocks this year, a year we're up about 25% border averages, what have we seen? how about not much. sometimes you have to not be at home with a stock. you have to expand what you're willing to invest in. you've got to take some risk and be out here showcasing these companies is about investing in risky stocks that may turn out to be not that risky after all. just because these companies don't make burritos you love or stream movies over the web or make cars that plug in or real good but pricey cappuccino, doesn't mean you can't make money in them. they similarly require a huge amount of homework, but returns could be fantastic for years ahead. instead of playing it out the way dell became or ibm, cisco and oracle might be. now, you know i'm not saying we should abandon the bowings and duponts, not at all. i like those companyings. i'm not suggesting for a minute restaurant chains or oil or industrial or gas companies
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can't be part of your portfolio too. that's just the opposite. i want you in j & j. i want you in noble. nbo, down a couple percent today. i think a honeywell or starbucks can be terrific investments. but i'm out here as much to educate you as myself about the value the cloud based companies bring to the enterprise, which is a fancy word for business. i want to know if we're in the third quarter, has the game just begun, is it the two-minute warning for the first half or second? i want to see for myself whether these are fads. and i can tell you definitely that they most are not, most. and, yes, i want to find the next salesforce and the next amazon like everybody else. believe me, they are out there. and it might be drop box, lest you think i'm nuts and simply at betting the science and pet.coms or e-toys, i want to bring in goldman sachs, steve balmer, the
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retiring ceo, my friend from college asked me to fly out to see him for the future. microsoft had grown into a company honestly might have been played out already, hard to believe, but really some people thought that. when i owned it for my hedge fund right up to the justice department investigation, which was too much for me i met resistance. the same way i met resistance for intel and owning it for my hedge fund when the 286 chip was introduced. later 386 and then 486. with each generation people thought it was game over intel. i mean, really, who needed a more powerful personal computer? now we look back. now we look back and see all the money that was made. and we marvel on how easy it must have been. hardly. we had top collars every step of the way just like we have them now for and yelp and so many others. here's the bottom line, it's terrific to invest in what you know. and own it over time for a decent return. however, if you can stretch your imagination, learn what you don't know and have a vision of the future, then you can make more money than you ever dreamed
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of. and maybe for us that's what dream force 2013 is all about. "mad money," defining the future from 2013 dream force conference in san francisco. we'll be right back. clients are always learning more
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we're here in san francisco for's annual dream force conference. basically the annual mecca for all things related to cloud computing. we are lucky enough to be able to actually chat in person with the co-founder, chairman and ceo of, marc benioff. plus, it just so happens that salesforce reported right after the close today and the company delivered in line earnings but posted better than expected revenue growth up 36% year over year with deferred revenue up 34% and huge key metric i follow, undeferred revenue up 40%. and management raised revenue guidance for the year. let's talk to marc benioff.
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welcome back to "mad money." thanks for inviting us to dream force. >> thanks for flying all the way from new york. fantastic. >> not a problem. this is a big billion-dollar quarter. i remember first talked to be a billion dollars for a year, what's behind the growth this quarter? >> jim, you see it was a monster quarter. >> it was big. >> 36% revenue growth at our level now $4 billion run rate, we just gave guidance 5.2 billion for next year. we're going to be talking about the $5 billion year. let me tell you what's happened in our industry. you've got four really defining forces, three that we've talked about. the fourth really talking about this show for the first time, cloud, we know about the cloud. you can see it all over here. 300 companies presented here. they're cloud solutions. mobile, that is everybody's got a new mobile device. >> yep. >> brand new phone, tablet, but where's the software to run your business on it? and, three, social. how do we use the metaphors for social computing to make our enterprises grow faster. the final one is connected all
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these new connected devices. connected cars. >> social cloud now connected? it's not a trinity anymore. what do we have? >> well, it's a quadrinty. it's a four-legged stool. >> okay. >> that fourth is interesting. i'm even connected here. everything is connected. everything that we see happening in our industry is that everything is getting hooked up. >> right. >> and as everything gets hooked up, people are tweeting, there's posting, they're devicing, they're e-mailing, but behind every tweet and every device and every post is a customer. >> right. >> and if you ever forget that as a business, you're really in trouble. >> i was on your website. you have a terrific -- you have facebook ceo talking about that. well, it's just teens, whatever, or just some guys, maybe an advertiser. but they all come back to the fact that they are selling something. and there's a customer and they look to you. why do they look to you and not their own people necessarily?
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why are you involved at all? why can't they cut you out? >> well, all those businesses behind facebook that are advertising and promoting and interacting with their customers on facebook, they need tools to sell to those customers, to service those customers, to market those customers. all those companies who are tweeting on twitter, okay, it's the same thing. and, again, if you're hooking your device up, you're hooking your company up, you're hooking everything up. you have to be ready to have a relationship with the customer in a whole new way, a one-to-one relationship. >> why isn't that more lumpy? why are you able -- i'm in all the number -- i just look at numbers. i don't sit here and think, how come you didn't do point this-this. why is this so consistent? in which it should not be consistent given the mosaic of customers that you have. >> well, the beauty of our business is we have this deferred revenue model. we had a monster quarter, jim. there's just no two ways about it. and because we had this monster quarter, the amazing numbers aren't even on these income
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statements and balance sheets. they're coming in the future. all that revenue got deferred. all that revenue is, you know, off balance sheet. and then as those contracts get into place now, over the next, you know, one year, two years, three years, and they start to dribble out, that's when we're going to start to see the future revenue opportunities. >> you still have big wins that won't filter. who are the biggest wins this quarter? i didn't ask last time and i was furious after it was over. >> we had some hazing victories this quarter. one of the really big ones was another phenomenal agreement with phillips. phillips is going to be here tomorrow my keynote. phillips is hooking up to the internet everything. they're going to have their brand new ultrasound machine, new lightbulbs, they're going to have every new product that they're releasing this year is all connected on the internet. let me tell you why that's important, jim. >> okay. >> on the new ultrasound machine, which is going actually right here at our ucsf children's hospital -- >> do whatever you need to do, man. >> there's a support button. you're having a problem with
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your ultrasound, it's not working, you hit support. what does that do? it activates our service cloud. why is that important? because those phillips technicians need to know right away you're having problems in the hospital with the ultrasound machine. but that's a metaphor for everything that's going on in life. everything needs a support button. because everything is connected. >> but here's what i'm confused about. general electric, jeff comes out and gives a keynote, they're direct mortal enemies with phillips. how can they all be under one roof here? >> well, i love g.e. and we're working very closely with every one of their divisions. jeff is an avid user of our new salesforce one technology every single day. he says it's the number one piece of software he personally uses to run g.e. even g.e. with new aircraft engines and locomotives are talking to each other. that is the locomotive is talking back to ge in realtime. >> and why -- i mean, ge's not a competitor. i regard tech companies as competing against each other. i would think your goal would be
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to wipe out hewlett packard, no, your goal is to be friends with hewlett packard? >> we are announcing today an unbelievable new product with hewlett packard. this is using our multitenant software and a dedicated instance for largest customers. we call it the salesforce hp super pod and we're going to market with hp. and megais going to be here tomorrow in my keynote to announce the new product. really exciting. >> is that a part of the 2015 $5 billion? is that when we'll see the results of that? >> well, we're going to see the results of all of these products immediately. we've got some -- we have our sales cloud, service cloud, marketing cloud. and we have our brand new salesforce one platform. that's our big announcement tomorrow, the salesforce one platform which lets you take your phone and run your business. and that's what he's doing. he's running ge off his phone using salesforce one. and that, jim, is what gets me really excited. it's all these happy customers who'd love to be here because
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they love the products. >> all right. well, marc, we're going to stay tuned because we're going to do more on why we are here and what you've accomplished. the transformation of economy through social, mobile and cloud. it's very real. and some of the best players in the game are right here right now. we'll have much more from marc benioff after the break. and we'll talk leaders of the revolution on a special edition of "mad money," invest in america, defining the future continues. stay with cramer. ♪ ♪
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why did i fly all the way to silicon valley for this year's annual dreamforce conference? it's simple. i'm going to be here with 130,000 others trying to figure out what could be the next big technological game changer from any other companies presenting at this cloud conclave. that's why i'm talking to marc benioff. you say many of us including me don't get the new economy. this is woodstock for the new economy? what is this? >> well, jim, i don't know if it's woodstock for the new economy. we do have the music, that's for sure. we're going to have neil young tomorrow. >> you departmeidn't tell me th >> well, if we're going to have
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woodstock. what's exciting is our whole world is changing here. you can feel it. that's why i like and so thrilled that you're here. you have to be here to really see that this is not just, you know, our old tech software industry. this is a new industry. a lot of new companies, 350 companies presenting here. 1,100 sessions, 130,000 people who are coming in for those sessions. plus everybody else online. that doesn't include the online viewership. so it's pretty amazing what's going on. >> speaking to one executive after another and they either got in the business because of some conversation you had with them or because of your platform realizing they could upend and have your technology. these people have decided they can do something against the old garb because of what you've built. >> well, the power is in our platform, you're absolutely right. which allows others to be successful. honestly, that's our goal. we have a motto, it's not enough for us to be successful, we want others to be successful too. that's the ultimate success. >> i saw scott dorsey.
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>> he had a monster quarter with us. >> i knew he would. it's more than just e-mail, right? >> it's more than e-mail. you know the new playstation 4 just launched. we're featuring them tomorrow in our keynote. he's driving the whole back end. the ability to market to all those customers. of course you have to e-mail with them, but you also have to manage the whole connected relationship. that's really the power. >> i always ask people to go listen to the speeches. whether from burberry who says they love you, ge, safeway loves you. >> safeway loves us. we have a great new relationship with exact target actually. they have a phenomenal customer database, but how do they get you all the information you need so that you can take your relationship with safeway to another level. that's what exact target's going to do. >> is it affinity, black hawk, the card or the actual store and produce? >> it's better than that. jim, you know, you could show up
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in their store, you could go to their website, you could be in an e-mail, you could be in a pop-up store, you could even be by their delivery van. wherever you are safeway is going to have a one-to-one relationship with you. they're going to know who you are. an exact target is going to help them line you up to safeway wherever that customer point is. and there's so many customer points. that's what's changed. that's what's exciting for safeway. >> is this world different from the rest -- i do not hear people talk about sequester and washington and bickering. i don't hear people talking about taper and new federal reserve. is this just a parallel universe that has to do with ingenuity and innovation? >> this is a cultive innovation. we're here to try to create things. and, yeah, those two guys are creating things. chatty and sassy. sassy, software is a service, and chatty. >> i use chat. i like chat.
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>> and, you know, but, yes, it's a cultive innovation that people want to create new things. why is that important? in our industry things are always getting lower cost and easier to use. so you're either riding that innovation curve or you're not. innovation is always happening. you know what happens when companies stop innovating. eventually the product no longer meets the market. the idea is keep going. keep innovating. keep changing. transforming. keep hitting reset button. that's the power. >> but one of the things i've heard from some people who are much more, like hero of mine from ask. >> my hero too. >> point-blank says, look, we're out to defeat oracle. but then you have a partnership with oracle. >> yeah. >> are you trying to be switzerland? switzerland did win in the end some ways. >> we want everyone to move to the cloud. >> okay. >> we want everyone to move into a market that we dominate. because when they do, we still dominate the market but they become subordinate. you see that with oracle's cloud
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revenues which are quite pathetic. they should be superior to ours, but they're not. >> but if they were, the rest of the business would be cut to rivets, no? >> well, i don't think so, but they do. and that's the point. that's how they -- people get brainwashed. that's the hypnosis. that's the crazy part. people all of a sudden say we can't go cloud or they'll destroy our business. the reality is if you don't go cloud, that will destroy your business. those ceos we see, steve balmer exiting microsoft. why? he didn't go social, or mobile, or cloud. he told us he was going to, but he didn't. the reason why you read "the wall street journal" this weekend, what did he say? >> standing amid progress. >> he says he's a representative of the past. >> right. >> dreamforce is a representative of the future. >> okay. let's go big. why was the president not social, mobile cloud for health care? and why didn't he just turn to you or why didn't you tell him how to do it? >> he was for his campaign.
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and then he didn't do it in this agency. i don't know why. >> why don't you just take it over? >> we're busy here, jim. >> you didn't even offer? >> we did. we offered to do it for free. we offered to run it for free for the next five years, rebuild it for free. but, you know -- >> is that too expensive for the president? >> well, i think it's hard for them to process what does that mean. >> they have a customers relation problem. >> it is. >> the customer was forgotten. >> it's our sweet spot. but you know what, san francisco's a long way from washington, d.c. >> maybe it's good that way. >> well, he's coming here next week, so maybe we can talk and let him know. >> thank you so much, marc benioff for being a gracious host. congratulations on the great quarter and what you've accomplished. >> great to see you. (vo) you are a business pro.
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welcome back to this special edition of "mad money," defining the future here in silicon valley from dreamforce. this week we'll be hearing from all sorts of tech companies from major established players to more privately held outfits, we hardly ever do that. this trip wouldn't be complete if we didn't get a chance to catch up with e-bay, also owns papal. i want to check in with e-bay's president and ceo. welcome to "mad money." >> thank you, jim. great to be here. >> great to have you. we're in a cloud event. and i regard paypal as the cloud version of visa and mastercard. how fast is it still growing? >> it's still growing very quickly both in the u.s. and around the world. paypal is the leading online payments provider and now mobile. we'll do $20 billion in mobile payments volume this year.
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and paypal is getting pulled offline. >> brain tree offline? go ahead. >> helping with third party developers and new economy companies growing up. and brain tree is a simple way to bring payments into a high fast growth start-up. >> in other words that's the -- that allows you to be in connection with other companies. that would be like here in salesforce. >> absolutely. if you want to just integrate payments simply, brain tree has the easy way to get payments right out of the gate. as you grow paypal will help you grow to our scale of 140 million users. >> i thought it was brilliant. stock went up. obviously the market knows this is the way to be able to expand paypal. >> paypal has an enormous opportunity. and we're really focusing on mobile payments. and braintree is serving a lot of these mobile payments, new mobile payments companies. many of which are mobile only. and so it's just another way investing in mobile to bring paypal both to the online and
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increasingly offline world. >> do you ever find a conundrum here, visa, mastercard $90 billion, e-bay $67 and back out to cash. almost getting no credit for the marketplace business because paypal is much faster growing than those guys. >> here's where i agree, it's an enormous opportunity. we used to just focus on e-commerce, which is a trillion dollar market. now with mobile blurring that line between online and offline, e-commerce and retail, it's a $10 trillion opportunity both for e-bay and paypal. so we think there's enormous opportunity. and we are doubling down our investment. >> and the retail experience has changed dramatically when you have paypal, right? >> absolutely. paypal is now being brought to point of sale. i was saying to you earlier i can now walk into the lobby of paypal's headquarters, go to the starbucks in the lobby, my cell phone's in my pocket. when i walk in, low energy bluetooth recognizes i'm there, i don't have to bring my phone out of my pocket. when i get to the front, the
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barista has my picture and my name on the existing point of sales system and says, hey, john, would you like the usual? and that kind of personalized service in paying, you never have to pay. she presses saying i paid, i get a text, i'm done. don't need to take it out of my pocket. personalize service. >> what's keeping us from all having this already? >> what paypal is doing is paypal is going through the existing point of sale and hardware and software that's out in the retail world, because we think that's the only way to get consumer ubiquity. we're starting in some cities like austin. you can go to austin today where in certain neighborhoods we're getting paypal accepted in all the restaurants, all the bars, all the stores. so you can go into a restaurant, you can sit at the table, you can order from the table and pay from the table. or you can order ahead to avoid a line. so we're building out our local footprint so we can provide that seamless consumer convenient experience consumers want. >> that's the holy grail. that's the last mile of being at a restaurant, which is what we want. now, i've been a huge supporter
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of paypal. i was taken aback last quarter when you ceo basically said -- i'll get his quote, a dramatically decelerating consumer for holiday. it looks as things have changed though. i'm starting to get a feel maybe holiday season is not going to be that bad. >> well, look, we don't know how holiday's going to turn out. but we're investing heavily in this holiday season. the consumer's out. you saw the playstation launch last week. we sold over 10,000 playstations on e-bay over the weekend because they were in scarce supply. the auction format watching the prices fluctuate. they were as high as $600 at times, $500, $400. but what the consumer is saying a hot new technology item consumer demand was there. >> makes me feel less gloomy about you're feeling gloomy. >> we've got our heads down and trying to serve the consumer. and partnering with merchants. what's interesting is retailers in this holiday environment are looking for ways to reach consumers, whether it's on the mobile, buy in mobile and pick
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up in store, which is very common in the uk, click and collect. or whether it's in the store. and so we're focused on partnering with those merchants and retailers. we don't compete with them. we partner with them to reach consumers. >> i do not understand why if i'm a big retailer would i want to give my web service, my enterprise business, to amazon who's trying to wipe me out. you're not trying to wipe out any retailer that i can tell. >> absolutely. we're partnering with those retailers. we provide them access to consumers, technology platform. we always have and we always will. we will partner with retailers, not compete with them. >> i got to ask you about stubhub. how big is that opportunity or is that just really never going to be a needle mover between, you know, among paypal and website service business and marketplace. is there something big here? >> no, paypal is growing and it's getting to very good scale. the secondary ticket market is huge. we have sports, entertainment. we have now launched stubhub in new york. we're taking that same great consumer experience, really
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convenient fan experience. it enables season ticketholders to sell their inventory of games they aren't going to. and it's an efficient marketplace and it's growing both here in the u.s. and now internationally. >> what do you say about the person that says, wait a second, under $167 billion roof i get stubhub, paypal, terrific web service business. i get the marketplace. i mean, there's got to be $100 billion worth of valuation there. >> all we're doing is focusing on growing our business, jim. that's all we can do day in, day out. get a little better each day. over time if we deliver the results, our share price will take care of this. >> of all the companies i've talked to here, you are by far the least expensive given how much you're offering for the shareholder and the consumer. >> sounds like a good buy, jim. >> thank you, john. that's john donahoe. stick with cramer. ya know, with new fedex one rate
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while we're out here at dreamforce, we're not just talking to the biggest players in the cloud. we also want to look at the privately held technological trail blazers that are leading the way. think about companies like drop
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box, one you might have heard of even though it's not publicly traded. it's a service that lets you store all your photos, documents, videos all your files in the cloud where you can access easily from any computer or mobile device. they have 200 million users and reel you in with two gigabytes of free storage and make you pay if you want to use more space. i think it would be a brilliant idea for my of the major cash rich internet players to make a bid for dropbox. i bet the market would salivate for an initial public offering, but do not take it from me. earlier we were able to speak with the co-founder and ceo of dropbox. take a look. drew, dropbox has to be the fastest growing for both individuals and now corporate loved product. you're now 200 million users. how quick did that happen? >> it's been moving. last year we had 100 million. this year 200 million. it's been like that since the beginning. >> i have friends who absolutely love you. i love you. but i know a lot of people never pay for you so they figure what's the deal? dropbox must be a charity. >> oh, no.
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we're patient. what happens is so you can start using the product for free and then a lot of people over time put more and more into their dropbox than they realize. i can have all my photos, all my documents, my whole life with me wherever i am and that's when people buy the extra service. >> a lot of people recognize you can't open iphone, goes down, they lose everything. this is the solution. >> we backup all your photos. we keep a lot of that safe for you. people love that. >> you also have coming on strong corporate. you have $795 option. that must be lucrative for you guys. >> yeah. well, i said last year we had 100 million users. last year we had 2 million businesses. this year we have over 4 million businesses on dropbox. >> and the businesses pay. >> yeah. it's a paid product. >> any resistance to that? >> not at all. businesses are thrilled. that's one of the things that makes people happiest about using dropbox is using it at work. >> innovation to your personal and work. looks like the people like a separation. you figured that out. it's actually good for them and you. >> last week we had a big
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announcement. we completely rebuilt the product for business so that you can have one experience but keep your home and work stuff separate. which is great for users and great for businesses. >> now, will that be more entrenched. i read for instance, listen, people can go against you and you said every major internet company competes with us. we get it. meaning you're not worried? or meaning you're one step ahead? >> it's been that way since the beginning. we look at the numbers. we're doubling and growing like crazy. people love the fact that we're not tied to any one platform. you can use your pc or mac or iphone or android. it just works. that's something that's been important to us since the beginning. >> so that's the social mobile cloud we see roll around us here again. >> that's right. yeah. >> all right. now, this is a little dated, but on april 24, 2010 the economist said dropbox can't hold its niche forever. google can flip a switch and give us all its documents, virtual hard drives at a moment's notice. they didn't flip the switch, they could do it tomorrow.
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>> well, the thing about what we do is it's really hard. >> it's really hard to replicate? >> it's really hard to replicate. and, again, we've had competitors since the beginning. so what people love about dropbox is it's really easy. >> it is. i mean, i got to tell you i'm -- in the old days i can figure, i can figure you out. someone showed it to me and i got it. >> and other folks have had stuff for a while. we pay attention to that, but more than that we pay attention to making users happy. >> are there still a lot of companies that you're shocked that don't use it? >> we're patient. we're going after everyone. >> like it's such a natural document to be able to work off of and they don't do it, publishing companies. >> more often i'm surprised by the companies that are. dropbox has found its way in all the far corners of the earth. >> there are a lot of people i know say, look, it's great. twitter comes public, i don't know, i want a piece of dropbox, you going to give us a piece of dropbox? >> well, you know, we're mainly focused on just building a team and great product.
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we've raised a lot of money in the past. business has been doing well for a while. >> both personal and work, is there another -- you're not trying to come up with something and sell it. >> right. so there's all kinds of stuff that we are working on. and, again, last week was a big launch for us. we completely rebuilt the foundation and product for business and given i.t. a lot more control and security and features they've been asking for. >> is it -- you think 25 million since july? >> that's right. >> can you keep -- >> i can give you a number but it will go up. >> that's in the same piece. at a certain point don't we have to say, listen, we've got everybody covered? >> it's amazing how big the market is nowadays. put the cloud market $160 billion, there are 2 billion people connected to the internet. that's going to be 5 billion people over the next several years. and so even at the numbers where we are we've only reached a tiny fraction of the people we'll eventually reach. >> i've been spending a lot of time with people -- i want to do
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my morning show "squawk on the street," there will be a guy who's 23. and people said, well, you can't give the guy any money. he's like 23. i mean, is an agent disadvantaged now? >> i was 24 when we raised our first financing. >> 24. and i'm supposed to give you money because you're 30. holy cow. you're over the hill. >> what can i say? >> but you find that resistance odd given the fact you know the truth which is that the younger people are the people who know? >> well, i think, you know, great companies are built by people of all ages. >> right. well, you have an incredibly successful. it's just a great pleasure to meet someone who's got a product i know has changed my life. >> thank you. it's great to be here. >> okay. that's drew hallston, founder and ceo of dropbox. you've used it. it does and can make a lot of money. stay with cramer. [ tires screech ]
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dreamforce, brought to you by the chronically overvalued company that is as they say. the police like to focus on simple analysis that we're judging these new tech companies by some sort of different and wrong metric that what we used to value the rest of the stock market. i can't actually totally disagree. i don't like to buy companies based on revenue growth. other than amazon that has been a fool's game over time. while they might indeed be the next amazon, others indeed will implode. pleasing the truth police enormously. the real problem would be a deflation of twitter because it's at the cusp of a social revolution an thet kal to showing profits for now. in tech land profits are a sign
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of weakness. that's left to the intels, microsoft, oracles, ciscos of the world. the overvaluation and i agree the stocks are overvalued, doesn't extend to the social and mobile cloud place. consider the container store i appealed from a few weeks ago or zulily. we have 3d printing place like stratuses and voel jet. seems to be no limit to the printing that is unless of course one of these miss and the stocks hit a retaining wall. i say good luck to the false police. perhaps somewhere down the road they'll keep people from losing money with the same vigilance that they're currently keeping people from making money. but here's what the scold stone see. might turn out to be radically undervalued like salesforce. and salesforce is hardly alone.
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there's another group of companies with tremendous momentum in stocks that aren't historically overvalued but actually moving up because of good earnings and a bump in the estimates. not sales estimates or pages or endorsements. for example, what are we to do with boeing. here's a dow stock up over 80% over the year jumping jgiganti gigantically today making clear that the run in the stock may actually be justified. the new dreamliner has tremendous orders, you can't get a new one until 2020. but these orders today are for the much higher margin 777. yes, boeing sells at 50% premium to the average stock, but what should it sell? discount? should it be valued the same as the average stock that any company would kill for. how is boeing overvalued when we are just in the second year of a typical seven-year aerospace cycle? the ceo keeps delivering and delivering. it's amazing to behold and it isn't about the cloud, social or media or handset.
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when i look at the cohort i wonder if it isn't undervalued. a group kept down by a quadruple threat of earnings of the sequester, the endless taper talk and the woes of obama care. the only thing the sector had going for it frankly lower price of gasoline and decent colder weather. these are tempered estimates enough that the two positives could trump the negatives. that's a huge sector that might still be cheap. and do we even have to go into the banks? if you get the prosecutions to stop, the lawsuits to go away and even a slightly higher yield on a ten-year while cd rates stay the same, earnings could be mu nif sent. a tech might turn out to be cheap when we see them grow into market caps overtime. and industrials represented by aerospace. i don't think the former will get in the way of the latter. and while the forth police try to do roundups, i don't see how the rest of the market can be contained by that skepticism. stick with cramer. (vo) you are a business pro.
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i want to give a big thanks to marc benioff for inviting us and sharing his insights. tomorrow we'll be talking to the ceo of yelp followed by so much more. i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on i'm jim cramer, and i will see you tomorrow. breaking news on the obama care website. published reports say the white house is ready to let americans bail on go instead directly to the private insurance companies to sign up for coverage. that would reportedly include people who qualify for government subsidies. well, wait a minute. isn't going to insurance companies to get your insurance the old-fashioned way? who needs obama care in the first place? and how about this for an obama care fix. what about a total repeal? even "the new york times" reminded us today of the catastrophic medicare repeal back in 1989.


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