Ask yourselves now that nearly all the big tech outfits reported and a day the market rebounded from its lows. S p jumping 1. 19 and the nasdaq surging 1. 69 . All right. It didnt make back everything it lost, but like i said, nobody ever made any money panicking. If you panicked yesterday, always a better time there is a whole network of smart, rigorous Money Managers who believe apple, amazon have become ridiculously expectative. Downright danger to zone they dont welcome the possibility that these could be worth trillions of dollars im not kidding, every day same goes for their compadres netflix and microsoft. There are tons of stocks in this market way too expensive by any traditional valuation metrics. However, that does not include facebook, apple, amazon, maybe alphabet say nothing of microsoft only netflix is one that i think is a bit of an outlier this is 2020, not 2000 that being the dotcom boom with the exception of amazon and netflix, all of these big tech stocks are valued based on their earnings, not their sales. The stocks are up, maybe the earnings havent moved up as much but were not talking nose bleed levels right now. Apple, microsoft, alphabet and facebook all sell for 35 times earnings estimates apple used to sell 15 times before it developed that continual perpetual earnings revenue stream that comes from service. Before you say 35 times earnings is too expensive, though, remember that these are some of the best businesses around the average s p stock saw 25 earnings they trade at a premium than the average stock, but arent they better than the average stock . Dont they deserve a premium these companies are taking over the world. I dont think theyre average. I think theyre much better than average. Only amazon and the companies that reported tonight is an outlier. It sells for about 100 times earnings and thats because it has a much higher growth rate than its f. A. N. G. Campaigns. To understand tam. In other words those trilliondollarplus market capitalizations, they look insane other than amazon, theyre priced the traditional way we value stocks are not out of whack at all while amazon trades on sales its pretty reasonable, four times sales. Nothing compared to some of these redhot cloud plays everyone is interested in. Snowflake, a company i really like, the exciting Data Analytics company, it charged 120 times sales, not earnings, sales. Big difference zoom, another company i really like if you want to talk about outrage out valuations, at least use the ones that are priced to sale, not priced to earning. Zoom will grow to its valuation because the sales to earnings is growing so rapidly which is why i like it here if you want to argue that something is outrageously expensive, zoom fits the bill. The Big Tech Companies that just reported, theyre nothing. Heres maybe a better way. You have to struggle you cant just choose traditional metrics all the time facebook, alphabet, apple, amazon and microsoft, they are all what i call proprietary. In fact, theyre so proprietary that they often get dragooned to washington so legislators can yell at them for being too entrenched and having too much power. Theyre per se monopolies simply because theyre the best there is when you hear representatives bashing these companies and making the argument for more antitrust enforcement, theyre really telling you why these stocks are worth buying. Congress is telling you to superbuy some politicians may hate big tech for being so powerful and immunized against competition. I say, look, this is mad money. Its not mad politics. These big tech plays are generating immense amounts of capital. Theyre like banks with amazing Balance Sheets, unlike the banks, they still have great prospects. Look at it like this, a lot of journalists made a big deal about on their Conference Call they said that advertisers are flocking to their platform because its more gentle, its more kind than the big social media sites that are being boycotted. Is that is that facebooks achilles heel . I dont know i looked over facebooks quarter. I didnt see any problems. I mean, if theres a boycott, ill pointblank call it ineffective, okay . They have so much cash, that stuff looks like a borderline irrelevant situation theyll say weve seen the mighty fall again and again. 25 years ago, for instance, the five Largest Companies with general electric, at t, cocacola and merck. Ge and at t, a shadow of their former selves. Why . They took on too much debt exxon got crushed by the drop in oil. Merck still important, although its lost its edge as the best drug company and has a very low multiple could the same thing happen to big tech sure, but not any time soon. None of them have too much debt. None of them have land lines, so to speak they still have the best engineers and developers so theyre not like merck and theyre not Natural Resource companies that are carbon based. I mean, theyre not sugar water. Theyre not Natural Resources. Still, we need to consider how vulnerable these companies are every single quarter, so lets delve into them in light of tonights earnings reports, even though i think they werent that significant, except for one company. Alphabet, the Parent Company of google was one company that did something very unusual they delivered a huge top and bottom line beat, and sent the stock soaring. Real strength is the google cloud, theyre breaking out the valuation of i always expect alphabet to somehow drop the ball and scare people, but they didnt this time it didnt happen youtube looks great. This is, as of today, a new alphabet hey, listen, it was up the least of all of these. As for amazon, they obliterated the estimates. What do you say about a company that earned more than 12 per share. Wall street was looking for 7. 48. Its ludicrous to see the stock go down 30 year over year their operating income forecast was a little bit light which is why the stock got dinged a little bit you know what . There was this thing, it was called covid it cost them, like, 4 billi 4 bn facebook, another huge top and bottom line beat 22 Revenue Growth if you thought the boycott would hurt them, think again i love instagram shops, what theyre doing for Small Business says that we should expect even faster growth next quarter although there might be some headwinds in 2021. For now, though, facebook is looking really good and what theyre doing for the Small Businessman is pretty phenomenal and never talked about how about this one is this the worm in the apple . Ooh, i like that now, finally there is what we have behind me, okay apple is getting hit in afterhours despite reporting a solid top and bottom line beat iphone sales were week, but you got to keep in mind this is the last quarter before maybe their most important iteration comes out, the 12. Four different models. All carriers are subsidizing them aggressively. 5g ceo tim cook is feeling optimistic apple is launch a new description button on friday the Service Business is on fire. 585 million subscribers across the companys various platforms. I think the pullback is a buying opportunity especially with the 5g launch and the fact that the company didnt skip a beat even though they didnt have a new phone. Thats amazing and the Services Business is growing like a weed. The worlds their oyster oh, they didnt give guidance. Why dont you get me an epidemiologist they know more ive got a professor of aerosols at ucsd that knows more than tim cook because its about covid. Why give a forecast . Unless tim is taking epidemiology at night or something. Okay, heres the bottom line after hearing from nearly all the big tech names, the idea that these stocks are somehow ridiculously expensive and dangerous, to me thats insane in most cases the edge estimates were way, way, way, way, way, way, way too low thats exactly what you expect from the best companies that are growing into their enormous market capitalizations every hour, every minute of the week lets go to mark in florida. Please mark caller booyah, jim thanks for taking my call. Im a longtime fan going all the way back to your kudlow and cramer days for us retail investors. Youve helped me tremendously over the years. Well, thank you. Caller my question is, is how high do you think the vix is going into the election and how high afterwards if its contested . Thanks okay. Yeah, i was watching the vix snap up yesterday and i said, all right, well, i care about the oscillator i care about vix vix failed exactly where i expected it to it really did. As far as i am concerned, let me tell you why im not as worried about the election, weve been down for a while if the democrats win, im thinking about a 10 pullback in a punch of stocks im talking about later in the show. If the republicans win, business as usual. All right. The big tech haters have gotten it all wrong, i think. These stocks are not expensive, all right . Theyre just doing great things. Not so fastly. Im sitting down with the ceo of the high flyer to try to make sense of its recent decline. Its fastly. And my exclusive with etsy stock closed in the red today, but could it be the prime time to craft a position in the company . And live person powers a. I. Messaging for Companies Like chipotle and delta and demand for its product amid the pandemic has pushed its stock higher what is the single after earnings im talking with the ceo fresh off its report these are not the cloud kings, guys these are Companies Making fortunes, great Balance Sheets these are banks except they have no bad loans and they have great ceos stay with cramer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet kramer, madtweets send jim an male to m madmoney cnbc. Com or give us a ssll at 1800743cnbc mi something head to madmoney. Cnbc. Com. Sales are down from last quarter but we are hoping things will pick up by q3. Yeah. Uh. Boss doug . Sorry about that. Umm. What. Its. Um. Boss you alright . [sigh] [ding] never settle with power e trade. It has powerful, easytouse tools to help you find opportunities, 24 7 support when you need answers plus some of the lowest options and futures Contract Prices around. Dont get mad. Get e trade and start trading today. But before we sign i gotta ask. Sure, anything. We searched you online and maybe you can explain this . I cant believe that garbage is still coming in. That is so false frustrated with your Online Search results . Call reputation defender today to join tens of thousands whove improved their online reputation. Get your free reputation report card at reputationdefender. Com or call 18778668555. Its moving day. And are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. It only takes about a minute. Wait, a minute . But what have you been doing for the last two hours . Delegating . Oh, good one. Move your Xfinity Services without breaking a sweat. Now thats simple, easy, awesome. Xfinity makes moving easy. Go online to transfer your services in about a minute. Get started today. What happens when a highflying tech stock stomach stumbles look at fastly which helps all sorts of companies ensure everything runs smoothly over the web. A little over two weeks ago this was one of the hottest stocks on the market then fastly announced not so hot numbers and the stocks been obliterator. Tiktoks regulatory issue, started hearing they could be developing their own inhouse content Delivery Network meaning they want to be able to do what fastly does. Yikes. Last night their full report and their sales were nearly in line, but the earnings came in weaker than expected. Disappointing guidance for the next quart . Cut the fullyear forecast now, there are more issues behind tiktok. Fastly uses a consumptionbased pricing model, but some traffic data theyve been expect from exists customers simply didnt come through the company says its a timing issue. Now were wondering is this a broken stock or is it a broken company that you need to avoid with extreme prejudice . Lets take a closer look with joshua bixby, the ceo of the fastly mr. Bixby, welcome back to mad money. Thank you, sir. Its an honor to be here. Okay. So, joshua, we know that tiktok turned out to be kind of like what netflix was, but we didnt necessarily know that it could be so abrupt what happens, lets say, to a tiktokless fastly . Yeah, i mean, if you look at if you look at the story of our business, we look at the underlying factors here. You know, we go back to basics, jim. We care about customers. We care that theyre growing we care that were adding new ones and, you know, taking the Dynamic Solution that you alluded to out of that picture still drives we drove a 42 growth quarter we had the second highest number of enterprise customers and our total customer adds that weve had since we became a public company. And we since the covid era started had the highest amount of new booked revenue. And that bodes really well for the future if you look at our Net Retention rate over the last 12 months if you look at our dollarbased net expansion, those remain at industry highs so weve got a tremendous concentration of happy customers. Theyre demonstrating that and we are driving the next generation of the internet all right. We continue to feel optimistic. Okay. So let me say this i look at it and say, is there a possibility that if i had unlimited capital from a spac or pe firm i could build a better fastly in two quarters you know, jim, a lot of people have tried to do that over the last 15 years, and there have only been a few that have been able to succeed. I think whats really important here is to understand that this isnt about buying hardware and sticking it in data centers. I mean, anyone can go do that. What this is about is actually about the future of how applications are going to be built, and thats a combination of delivery, security and compute. And we theres a flywheel here that happens. When you have the greatest innovators of a generation who are working to build the future, right . We serve as builders those builders build and they iterate, and that entire process feeds the entire community so what you see in fastly is a combination, we stand on top of all of this Great Innovation thats being driven by the greatest innovators of our generation so you got to get, for sure, hardware out there, but its not there. Its actually about the innovation cycle that drives this future. Which is what were seeing happening in front of us right now. I think lost in the tiktok and the timing issues was the revenue contribution from signal sciences the computer Edge Production tell us about those. Because those seem to make things even more proprietary, is the way i looked at it. Yeah, and thats a great way to think about it. I mean, its a its a situation where you are an innovator, and as you know, the innovators sit on our platform, right . So if you are one of these innovators and need to deliver content, you and i are going to look at an ecommerce website or doing a transaction, we need that to be perfectly fast. We need it to be pixel perfect, have it be secure and personalized and, really, the applications of the future are doing all of that at an edge i mean, this is the new way to build this we sit very humbly in front of the most innovative customers in the world and we get to see the future because of that theyre innovating the future now, and they do that by using our tool and so the reality is, its about security and its about compute. And those are the two elements that we, you know, made really strong inroads in this quarter by launching our edge compute, and as you said, by closing our deal with the most innovative web and api Security Company in the business. Okay. When i go now to shop, i dont want to go see i bought some jewelry today. Im talking about expensive jewelry. By looking on the web. It was lightning speed able to show me every different direction. I was able to see what it looked like on a person it was everything i wanted it was fast, fast, fast. Im sure if im in school, i dont want slow. I want fast. I want beautiful what is covid doing for the business right now so covid, you know, as we saw the world change overnight, but what this this was not a phenomenon that just started with covid, right . Right. We have all moved our lives online this accelerated it. But when you look at our plan, because we build for five and ten years from now, the reality is we knew before, and, yes, covid accelerated, but we know covid is going to be over. As covid ends, what we are seeing is an entirely new generation and a new way of working and a new way of living, and as you said, a new way of buying and that way of living, buying, working is going to be driven primarily on the internet and primarily by those that invest in speed and security and performance. Thats what matters. And thats what weve shown with the winners that are in our Customer Base that have demonstrated that up to the market and i think were seeing that today see, the roughest thing for me you know we did the piece about where do you find the bottom when this happens . Your valuation is 7 billion i dont think i could start and create what youve built for 7 billion. And to me that is the way to look at your company you cant do it for 7 billion you agree with that . You know, what i agree with from where i sit is that the customer relationships we have, the trust we have, what weve seen represented by how our customers grow, i think thats invaluable. Right. To what we see in our customers and actually, phenomenon that were seeing since covid and weve seen it accelerate, weve always been the darling of those that innovate and Digital Natives they get us. Theyre builders were builders were the same as you go to quote, unquote, cross the chasm, you get into storied enterprises that have been around for a long time. As we go into the new quarter, we talked about this with the footwear and the they have to innovate faster than ever. And so when you realize that you have to innovate, you look up in a market and say who is innovating they have a similar innovators toolbox. We are one of those tools. Absolutely. I think whats really important is the story arc. I agree with you. Its hard to understand to find the level, but the f