That s p 500 declined, nascar lostering with need on address an important question. Do we have too many of everything . It sure feels like that on a day like today. Too many stores, too many trucking companies, too many airlines, too many banks, and nothing can be done about it except survival of the fittest. For the longest time the free market took care of itself. The big fed on the small. We had rational markets based on companies able to combine and take out costs. But in the last couple years, the federal government has turns violently against these deals. Were starting to see the havoc as company that grow are no longer given higher priced earnings and the government has chilled the whole darn process. I think it is a back lash to the justice departments willingness to bless too many Airline Mergers with the straw that broke the camels back with the u. S. Airlines deal. That raised prices and it changed everything. It has been downhill for mergers ever since. Think about what has happened lately. We have to put it together. We have way too many oil and service companies. Then this is the oil patch itself of there have been so many companies, apache, range resources, eog, we got nothing. No deals. Nobody budged. The only pipeline deals, it could have men so much at the right price. But they got it very wrong. Now its decided at the end of the week. Meanwhile there are a number of Pharma Companies but when pfizer tried to get together with allerigan, they nixed it. Even though they are now american, it made sense for the Treasury Department to kill the transaction. But boy, at this time ever freeze mergers in the pharmaceutical space. Now consider this dow dupe only deal. Have you noticed it is not getting done . It is because they dont want to bless too many seed producers, merging to become the number one in the industry. We havent heard anything about the intent to take over riteaid by waldwreens and thats all about market share, too. Of course, they really want to see two of the nations three largest drugstore chains coming together. This is an empty seed tradition. Another transaction, looking like giant giveaway. At the same time, in the Health Insurance base, the government is putting out the word through the press that at once the anthem cigna merger on ice. What does that mean . Is it now dead on arrival . Could be. Although state and federal regulators do seem more comfortable with the combo. They dont matter. Plus, put it on these deals together. Put them, all the stalled deals. What you can see is there is Something Big going on here. Sgig bad for stocks. It is difficult to measure, the fact that the government has gotten more resistance is a huge overhang. If there is no new money coming into stocks and we have record high positions with fears of brexit, the only way we can rally is by shrinking the existing stock. Ibex can do that but not enough. Takeovers are the real answer. For example, lets look at retail. We have a massive number of Department Stores that seem to be on the endangered species list. Look at kohls, macys, jcpenney, Niemann Marcus and sears. We dont need that many stores. It is absurd. The solution . We need mergers to let them sell their valuable real estate while giving them more for suppliers and creating opportunities for cost cutting but they arent taking advantage of their chances. Sure. Sports authority went you said. But these are just amazon kill. And they dont take that much capacity. We cant expect home depot to merge with lowes but there are so many smaller chains they should be gobbling up. Way too many suppliers fighting for precious aisle space in these stores. Have you ever tried counter the restaurant chains . Wendys, burger king, buffalo wild wings, jack in the box, kfc, taco bell, pizza hit, dominos, mcdonalds, you name it. It is ridiculous. Judging by these. We know that honey well tried to merge. You know the best thing going . Something that we were asked about. Thats a good deal. The Auto Parts Company need combine to get more power over the automobile manufacturers for certain. Media mergers make so much sense. You think youre getting blocked by stubborn participant. Time warner gave them the high. Tribune went rogue and it looks like that blew up for no good reason other than ego. The best way to solve the problems . Unite with cvs. How about biotech . Do you know who came back with a snap back rally . Do we really need all of them . Those are the big ones. So many smaller players. The small speculative ones have come down dramatically. Nothing is happening. Maybe it never will. Finally, tech. Talk about an area where consolidation is desperately needed. Later tonight were hearing from a Terrific Software analytics company. I like it a lot. That would be a natural fit. They want exposure to Network Analytics but im sure it isnt on the radar. How about fitbit . This is not a watch company, it is a health and wellness company. At these levels, it is at 12. I listen to twitter today talking about his companys prospects. Sure, theyre improved. But the stock is the worst. Thats an opportunity for somebody. But no one is taking it even though microsoft overpaid. I just dont get it. I dont understand why more company dont feel urge to merge unless theyre afraid government will derail or delay their deals. And the he wielephant in the ro were talking dealers. Tesla bailed out their cousin company. Eli musk with his own shareholder base. 215. Teslas stock is now below 200. You know my view. You like tesla. Buy the car. Not the stock. Maybe im too conscience of the vast number of companies out. There i have to study furiously for the line round every night. Endless new stocks. Endless tech and bio. Way too many. The clock is ticking. The bids should be made. But it sure doesnt look like that will happen any time soon. Lets to go susan in california. Susan. Caller hi, jim. Hi, how are you . Caller just great. Great to talk to you. I have disney. It took a hit the year partly because espn is losing subscribers. How is it going to handle that problem . Dory is doing great. If espn is not doing that well or it is losing some stocks, then disney will go down. Longer term, i think all the things that you mentioned. Whether it be Shanghai Disney or the incredible movie slate. They will trump over espn. I have to be honest. Right now, it just hangs on every little date point on espn. And i think espn is not doing as well as it used to. Steven in washington. Caller is this a good time to increase my position in starbucks after the great news on june final reported by the wall street journal that the World Health Organization after 25 years reversed course, stating now that coffee is not chaffable as a carcinogen. Steven, my trust owns starbucks. It is in the grips of high multiple compression. The companies extremely highly valued are just not doing that well. Worst day in the course for the Charitable Trust but i expect nothing out of starbucks until we see the next quarter. Here are two words to describe this market. Too many. Retailers, restaurants, banks, biotech, you name it. And it is leaving some fierce competition and lower stocks. Maybe good for consumers. Bad for the market. On mad money tonight. What are underarmor, air b b and groupon all have in common . They are all clients of one tech. Then forget king leer. Is this gearing up for a tragedy . Ill put it in a historical context. And fitbit. Can it regain its footing . Ive got the ceo to talk about the plan ahead. I asked my dentist if an electric toothbrush was going to clean better than a manual. He said sure. But dont get just any one. Get one inspired by dentists, with a round brush head. Go pro with oralb. Oralbs rounded brush head cups your teeth to break up plaque and rotates to sweep it away. And oralb delivers a clinically proven superior clean versus sonicare diamondclean. My mouth feels super clean oralb. Know youre getting a superior clean. Im never going back to a manual brush. At a time when every Company Needs to embrace digital or die, it is important to know how well the software and the websites are doing. Thats where a company like new relic comes in. They provide Cloud Based Software that helps companies monitor and measure what their Business Software is doing and how users are interacting with it in realtime. Does it work . It gives companies tremendous insight into the digital operations to make it easy to fix problems before they happen, always wealth of data about what the customers are doing. A couple of exam manies. Remember the disastrous launch of healthcare. Gov website. Hit so many bugs it was almost unusable. Well, the administration called tech experts. And they started using new relic. Heres another one. Understanding the dill digital experience. It shows people what they are reading and whether they sign up after perusing a certain number of article. Thats incredibly valuable information. After plunching down to 20 and change, thanks to a selloff in all these tech stocks, made worse by linkedin imploding, it is working ever higher. So can the stock continue to rebound . Lets take a closer look. This is the founder and ceo of new relic. Learn more about his company and his process. Welcome to mad money. Viewers are bombarded by Software Analytics companies. They think they have to be able the same but theyre not. The most important thing is that business of all types feel this urgent need to become digital. Every board is digital. If youre going to go digital because your company are going digital, how do you realize the return on that investment . How do you make sure it is working. Thats what Software Analytics is doing. Were the only one in the cloud where a pure play cloud company. 100 sass. So im an Industrial Company and trying to figure out how to have gross margins. How to beat my guy. So obviously, what do do i, go to you . Absolutely. Lets look at ge, for example. So ge is globally standardized for all its software initiatives. That means that youre the platform for their initiatives . Basically were the platform that measures every software initiative, monitors initiative that they are doing inside ge. Theyre becoming a software company. How do you know if your software is working . Whether or not it is producing a good experience . This is the dashboard to measure the software. Lets say im the government. I want to do a healthcare. Gov. I need to you figure out whether it is working . Absolutely. And there was a before and after with healthcare. Gov. Before new relic, it was front page news that wasnt working. Within days of calling new relic, hungs of people were using our product. It is so easy to use. That that was the turnaround that got healthcare. Gov on track and now is delivering Incredible Service for millions of people. I try to explain to people, when you look at a company like new relic, youre not looking at erks per share. Youre looking at land grab. Youre looking at being able to playing it so no one else comes in and looking at exceptional growth. This is your mantra. We are a growth company. Absolutely. We expect to continue to grow. Weve never been a growth at all costs company. Weve delivered a thousand base points for the last two years running. We expect to do it next year. We just see, if every business is becoming a Digital Business and there are these Legacy Company stuck with on premise business models, there will be leaders that emerge. I think theres a sales force opportunity and we are the only cloud company, pure sass company in the space. We think weve had an opportunity to focus on the growth. So compete with amazon. Im a retailer. I bring in new relic to tell me, how not to screw it up . Yeah. It is so easy. Basically first you sign up for an account. Within minutes youre seeing inside your software and seeing, am i open for business . Is the shopping cart working . Thats step one. What are our customers doing . Whats the End Experience . Is it fast or show . How do i make it faster . Third, because were seeing the Digital Customer experience, we can help them grow their business. Youre learning about your Digital Customer. When you learn stuff from the data we provide you can actually make the Digital Customer happier and that grows the business. Speaking of growing business, did you start for some of the smaller medium size. Yes. Can you give me an example, small or medium that we dont think is small or medium in part because of what your company has done . One of our 50 customers was air b b. Weve grown with them. So this is another part of our growth story. It is not just a onetime kind of interaction with new relic. As our customers grow, as their foot print grows on cloud or on premise, we grow with them. Thats one of the reasons why we have the tip which i relic customer grows over time. I have one that i happen to love. Im picking it because a lot of people watch our show are symbolic. Mlb. Com. If i have trouble getting on, i get a Customer Service person. Is that rootuted through you . Mlb built a billiondollar business. Our National Past time has moved not only from the ballpark to the tv to the phone, or the tablet. So mlb makes sure that tablet or phone is world which is a. If people cant see the stats, they may never use it again. And that billiondollar is in jeopardy. So they use us. I deal with a lot of Older Company that are big. Ibm. We want to be in Software Analytics. They look at the size of your company. They know they can buy it. You lose your company if that happens. Do you want to whos your company on behalf of the Share Holders who want to make a little money . The most important thing is that i love my journey at this company of i still build software as part of my job. Just like youre doing what you love. I am. I am. So as long as were just focused on delighting our customers, were not done building products. I cant wait to come back and tell you what were building next. So thats our focus. Delight our customers. Ride this wave to digital. We think our best days are ahead of us. One thing no one understands its, how you can be both friends and enbhis amazon. Youre on amazon services. Were friends. Think about, amazon wants more and more businesses to move their businesses to the cloud as fast as possible. Whats the hesitation . I want to make sure that i derisk that move. New relic derisks the move to the cloud. By measuring the effectivence of the software on premise and on the cloud. So amazon loves us. We accelerate migrations to their cloud as well as azure, as well as other microsofts cloud. Does wall street not know how to value analytics . The ear mark should be somewhat of a function. Yours is huge and the market cap is not where it should be. Were talking just before this. I think in the very early days of sale force and cisco, it was really hard. Were trying to create a market heretofore has not been fully defined. And we feel like over time, investors will figure out the opportunity. We focus on delighting customers and it will take care of itself. I agree. The founder and ceo of new relic. Newr. Im embarrassed to say that even a 84 ago i didnt know these guys. My bad. Coming up. Look what came up. Twitter. Give it a spin. The wheel of tech fortune is coming up. On on on on. The rhetoric tomorrow for the brexit vote on whether or not england will leave the European Union has jumped the shark. Ive repeatedly told you that all sorts of commentators and Money Managers are making a money out of a mole hole. Even if the dreaded brexit actually occurs, it wont do as much damage as were being led to believe. Especially for the companies in the United States who dont do business overseas. It is now actually entered the room of pure hysteria. Why do i say that . When i picked up this mornings wall street journal, i noticed op ed by ridley. The piece is titled, the Business Case for brexit which doesnt sound all that ominous. When i read the first paragraph my jaw practically hit the floor. Heres what he says. In voting thursday on whether to leave the European Union the british people face perhaps the moment momentous decision cynic henry viii left the church so he could marry as he pleased. He just put this brexit vote on the same level as the property assistant reformation . Ridley continues. The Catholic Church five crime scene ago was led by the eheat answerable to its own courts at the expense of ordinary people and with powers to imfoes one size fits all rules. I think that overblown melodramatic framing of the issue tells you everything you need to know about whats happening here. This kimes of hyperbole can be found on everything on both sides from which well hear the pro euro crowd which claims a brexit could devastate financial world. Ridley is a pretty smart guy. Takes the vote for staying prex vote could be the most momentous vote in 500 years. Do i need to say why thats ridiculous . The totally unnecessary decision to get involved in world war i . More momentous than the english civil war where they cut their kings head off and laid the foundations for modern democracy . Does the prex vote have more significant vote to fight napoleon to the bitter end or to colonize huge chunks of africa and asia . Or i think it is safe to say that neville chamberlains attempt to appease hitler was bigger. In the heat of rhetoric, britain is already an a la cart member of the eu. Not only does it ever its own this money. They are part of a border free zone. You can travel between them without a passport. Thats not the case in the uk. The court of justice cant overturn british haws based on the charter of fundamental human rights. Britain is not a signatory. And they have ability to opt out of any eu legislat