Under valued it sounds crazy. We had a remarkable blitz up we just came after that brutal sell off all the buyers vanished. Now suddenly were back dow surging 328 points and s p jumping and nasdaq pulled 1. 87 . Why . Why did it happen . Why was so great today because today is merger monday monday used to be the day we always came in and merged and stopped. Guess what its back and bigger than ever so i bought out the merger both. Merger. Merger merger. Yes i havent used the merger both, i dont know, four or five years and its back. All right, all right, all right. Back and bigger than ever. We spent a lot of time trying to figure out what stocks are worth, right the price to earnings. Price to sales and book value. All that stuff we try to do. There is another way to value this business. You look at what another business might be willing to pay for that business and today we got a wave of huge mind numbing deals that suggest there are many real bargains in mna. Merger. Merger merger. Lets start with this tiny announcement gilead silence is a gigantic biotech was acquiring immune medics for 21 billion. See, its real the stock traded at 4 eight years ago. Immunomedics has a viable cancer treatment. Stock could rally to 40, just this summer on rumors of takeover and gilead pays 108 premium on top of the 40 on top of the eight, on top of the two and guess what youre getting 88 per share from Gilead Sciences even after that massive price tag, the stock should be down, no, it rallied the markets judgment is this deal is good for gilead. Which suggests that i am immune. Mustically under valued at 40 look, okay, so belt line cramer fav nvidia playing for armed holdings this will crown them as the king of the semis by columbining graphics and data centers with armed processers for computers and cell phones. They are paying a fortune among nvidia stock up 100 for the year nvidia stock still roared again today. The deal is a game changer the only real objection, some analysts believe the anti trust regulators will put a stop to it i spoke to jenson wong and hes the bankable ceo and on squawk on the street and adamant the deal would pass. Given that he finally got the fabulous deal through the Chinese Government tried to profit initially, i believe him. He says what the add is to earnings and i believe that. It could be a steal because of the one. Arm is an extraordinary company. This build the worlds most popular cpu. It is build 180 billion units over its course of its history 22 billion of it last year and theyre in everything, theyre in everything. People are believers up 28 today. Up 28 on paying 40 billion for a company and most people dont know exist most people think nvidia is over valued i think they are wrong its 57 times earnings nvidia looks ridiculously expensive in 2018. The thing is when the actual earnings came in, they were higher than expected the stock looked absurdly cheap. It was trading at 20 times earnings 20 times earnings. I think the same thing could happen again here. Even as nvidia is the largest Semi Conductor company on earth by market cap. Jen conson is worth. Merger. All right how about this tiktok craziness . This social media site for morons jimmy chill. People that dont have a real grip being strong armed into spinning off the american business, a lot of us assumed it would go to microsoft. Turns out oracle wants it too and tiktok went with them. They are mum on the deal and there is a ton of interest from players. Microsoft teamed up with walmart because the Online Advertising possibilities are too phenomenal to innognore. Stop trading uhuh. Oracle rallied 2 and change a big move this is hardly a match made in heaven its an Enterprise Software company and tiktok is for kids doesnt matter tiktok is a great asset. Microsoft was up because nobody wanted them to over pay. My travel trust has a position and a Little Company called Seattle Genetics we had them on air and visited with them. They visited with us now, we this is a company with antibody based cancer treatments that i think are as powerful as the one gilead over paid 21 billion for Seattle Genetics didnt get acquired for but the giant took a 1 billiondollar stake at 200 150 on friday and closed today merck with another possibility merck stock rallied most of the day and closed flat but believe me, people have a deal it will be fat for recommending seattle gen. Nobody seemed about the oncology and the stock wouldnt evcouldna lift its on fire so is merck when you look at the longer term. They are both under valued finally there is, oh, boy, ricola nikola yes, this last week we talked how this electric truck play with a hiydrogen fuel cell sickr was there was a Devastating Research they filmed a truck rolling down a hill and edited out to give the impression its running on its own power cant make that up today nikola shot back but i couldnt get past this line called dispositive it never stated the truck was driving under its own in the video. They didnt mention it was shot on an angle and made it look flat flat thats okay. Didnt seem to matter. It jumped more than 11 on the rebuttal General Motors took a stake on niko nikola they come a long way after the fake truck video and bad behavior they reiterated they did their do diligence hey, you know what we actually did homework, i know you dont think we did homework. The dog ate our homework and a rebuttal worked. Maybe nikola is worth more than we thought im skeptical saying the scc is looking into it, which means frankly nothing. But it did drag the stock lower after the bell you can say im cherry picking and these are one off situations thats the wrong read. If we got this activity, you would expect the stock to go down, not up youre expecting them to rethink their attitude i know short sellers were banging down nikola and seattle gen. I know that immune medics was a laughing stock with the revolving door of ceos who is laughing now . Matters is the market has moved. Bigtime Hedge Fund Managers may say stocks are tie and dangerous. They were in a bubble, bubble, toil of trouble. They seem to think many stocks are under valued or reasonly valued and maybe hedge funds will be right but not if youre short immnumedics. Bottom line, will will be more sell offs ahead. The last week of september is supposed to be bad i want you to remember what happened today and i want you to try not to be too negative in case you need a reminder lets go to ojay in alabama, ojay caller how is it going its incredible its incredible today. Whats up with you caller everything is green im down here in gulf f shorshos about to evacuate the hurricane. Oh, gee. Caller walmart. I love walmart. Walmart is better than people realize because the snobs in new york that are analyst dont go to walmart i like my walmarts and i think its terrific and any time doug wants to come on air, this is where he should come on. This is where he should be because the stock is a buy lets go to taylor in michigan, taylor caller hi, jim a big chicago booyah. Well, okay. Right back at you on that one. Whats going on . Caller im calling about domo the company is working to become cash flow positive in the recent quarter with a term Loan Maturity suggests they are making progress. They are. They are making progress here is the problem. There is 42,000 of these companies and after awhile they get lost in the shuffle. I think its good utah based, not Silicon Valley but there is an awful lot of these and that does make me feel yes, there is a glut of those stocks look at this i like the last one. Tries. Never forget the truck the truck. [ laughter ] really remember. Merger. The market has spoken next time we get a sell off, i want you to remember merger monday mad money tonight ipos are like snow flakes no two are alike many hitting the tape this week and snow flake tell you if its worth considering ahead of the first day of trading and you dont want to miss that. How a race for the vaccine could impact the overall market and with pharmaceuticals down over the past few months, is it worth considering here im getting update from its ceo. So stay with cramer. Announcer dont miss a second of mad money. Follow jimcramer on twitter have a question, tweet cramer madtweets send jim an email to mad money dot cnbc. Com or call us at 1800743cnbc. Miss something, head to madmoney. Cnbc. Com. I cant wiat to share at ts big 5g news. shouting through the glass at t has nationwide 5g . Yup and thats faster . Faster, yea but is it reliable . Ah huh and secure you should consider making a big deal about it bigger . I said bigger oh, bigbigger deal bigger than what im doing . Its not complicated. A 5g Network Needs a 5g device. Now everyone including existing customers can get a free Samsung Galaxy note20 after tradein. Makes it beautiful. Stateoftheart Technology Makes it brilliant. The visionary lexus nx. Lease the 2020 nx 300 for 339 a month for 36 months. Experience amazing at your lexus dealer. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. Stocks by the slice from fidelity. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Lets get grand. Friday were about to get ipos. There are at least a dozen deals coming this week were in the neighbor had of 8 billion. Do we have room for that supply . The biggest one, the crest of the wave is snow flake the cloud based Software Company in the next generation Data Warehousing platform and one of the greatest websites if you want to find what they do, which most people dont know snow flake is everything wall street loves in a Software Company. It has triple digit growth rate. Its got rising margins, a terrific Business Model loaded with reoccurring revenue this is going to be a very, very, very, very, very, hot deal maybe too hot. The under writers raced the price range. It is expected to be the largest software ipo in history. Which means this will immediately become one of the most expensive stocks in the entire market. So what should you do with snow flake after it comes public on wednesday . Before we answer that question, you have to know what makes this so special a decade ago we heard about all the possibilities from big data. You know, spunk talks about that sales force talks about it companies have treasure troves of Digital Information and they could use that info to make better decisions weve now been through the big data revolution. We know it works in fact, its become essential you cant compete with the big boys unless youre collecting all this data and using it, mining it to learn more about what your customers want but since then, we had another revolution the cloud revolution and a lot of these big data systems for the cloud, companies have access to an immense amount of Computing Power but before they can apply it, there are challenges data tends to be siloed. You have to toggle back and forth. The right hand doesnt know what the left hand is doing or stored inconsistent formats or the old databases werent built to handle the volume you can squeeze out of the cloud businesses have this data but its a huge pain to get anything valuable out of it weve seen an industry spring up to help companies format and process their data they spend fortunes on this stuff. Hardware, Information Technology experts and on premise software. The costs add up and you see a room full of people trying to do the same thing wrong way to go. And that brings me to snow flake. Snow flake built a cloud base system that integrates and optimizes your data. You dont need an entire department to ask a question best of all, its cheap and you dont need infrastructure because its a software service. How big is this opportunity . The total adjustable market for their cloud Data Platform could be 81 billion they also touch on analytics, integrated platforms and business intelligence. Collectively a 56 billion market is growing like a weed. On top of that, this is an Enterprise Data sharing component thats not been measured because its new long story short, people are crazy about it its a great concept snow flake has the best plug lines. We mentioned this on friday but its worth repeating the company is run by a man named frank sluutmon hes service now another cloud play that helps back office jobs including it jobs. He took service. Stock opened at 23 and change. Its 458 how is your index fund doing he sold it to emc in 2009. He is a legend in Silicon Valley under his leadership they grew from 100 million in sales to 1. 4 billion in sales and thats what he wanted to do. Once he took it there, he said lets give it to somebody else im onto the next. A lot of look at snow flake as a great ipo. Look at the numbers, they are incredib incredible these are things that if youre in the business youre kind of blown away ill give them to you. Snow flake had 174 Revenue Growth last year that is so much better than any other company i follow its amazing in the first half of 2020 it sold 133 growth still insanely good no company can sustain triple digit growth then there is whats known as ipo or remaining obligation. Software companies started using them first to the money theyve been paid up front for services they havent performed yet subscription accounting. Think of it as a backlog the performance is up 233 last year not only slowed to 211 the first half thats quite simply spectacular. Total customers, more than doubled in the first half. Total customers with more than 1 million worth of business up 155 net revenue retention how much they are selling up 158 people, these are all better numbers than any company i talk about. Any company. There isnt one i mentioned that has better numbers than that company. Snow flake is losing a lot, thats what happens when you invest in order to expand. The numbers are moving in the right direction. You see why salesforce. Com and burke shire math away, warren buffet are taking 250 million positions alongside the ipo. Sales force is the obvious one they invented the cloud. Mark did the same thing when zoom video became public but burke shire maerkshire mathy if they like it, what am i doing saying im nervous one word, valuation. Originally snow flake came public at 75 to 85 per share but there is so much demand the price range dramatically and talking 100 to 110 per share. It looking like the company will be able to raise between 3. 5 to 4 billion and that assumes they dont raise the price further. Thats a bogus assumption. At the lower end of the range, my back of the envelope math says this is a 27. 7 billion company. Were talking 30. 5 billion assuming snow flake can keep growing 133 , they will have 615 million revenues and the stock will be valued at 45 to 50 times sales. Of course, if they can maintain a triple digit growth rate for the next couple years, that stock will look cheaper than the 2023 estimates thats a big if. In a market that loves cloud stocks and no earnings, 50 times sales is tough to waswallow. Zoom sales for 48 times. Thats the upper end of the range. You got to assume that snow flake will spike out of the gate that means it can be substantially more expensive than zoom. Zoom so where do i come down . Look, i am torn. I think snow flake is going to be a great long term performer i bet it will have a very strong first week but the price of admission seems too extreme for me unless you can get in on a deal remember, those who get stock will come in and buy more in the aftermarket and their cost basis will be lower than yours that if you came in the Public Market thats why so many buyers are insensitive to the price lets say they get 100,000 shares that would be a lot and opens at 200 they buy 100 or 200, they get a basis of 150 here is the bottom line, if you want a piece of snow flake and cant get a piece of the ipo, wait for the next tech pull back, which i know we have we had one at 10 . When the cloud stocks sell off, they sell off hard youll get a better entry point. Make no mistake, snow flake is a winner and if you insist buying it out of the gate the opening may be the low of the day. Stick with cramer. We got no free pass. Everything we have, weve earned. The unmistakable lexus is. Get zero percent financing on the 2020 is 300. Experience amazing at your lexus dealer. Can we get a Covid Vaccine by the end of the year . Thats the biggest question of the market and its nice you get 30,000 people into a trial just to test a vaccine its a whole production but thats the only way to know if the darn thing works and i cant be any 30,000 people you need to test with volunteers in hot spots with a realistic chance of catching the virus that in mind, as ttrazeneca is the lead but had a major problem with a patient we dont know what but enough to halt the trial if everything goes right, astrazeneca might have a vaccine by the end of the year pfizer is trying to get out there, too same with moderna. The vaccine bulls are charging of course, even when we have a vaccine in theory, you have to manufacture hundreds of millions of doses and make people take it that doesnt happen overnight. The possibility of a vaccine coming soon is the day to day drum beat and Decision Making and the market is saying today that the vaccine narrative has swung dramatically positive. Okay and its getting louder. So let me give you examples of what people are buying betting on a vaccine marriott rallied more than 5 today a bet on the vaccine of course were getting good numbers ocho up of cho out of china the hotel space is a house of spain. You can argue a big chain like marriott would be the last man standing but im not sure the market is that discerning. Its september vaccines a