Terror im referring to the endless battle that defines the stock market the bitter struggle between growth and value one faction of investors wants to buy something cheap in the hope it will blossom or get a takeover bid but the other faction is willing to pay up, up, up, as long as it can grow rapidly right now, growth is crushing value hence, why the dow declined 57 points, the s p back slid today, and the nasdaq advanced 0. 47 . And this becomes even more pronounced when you look at how the individual sectors are doing. Ive always felt a mix of growth and value is the right thing being diversified is the best way to protect yourself from moments when growth gets too overheated, and the stocks come plummeting back to earth right now, though, that philosophy, that diversified philosophy, has fallen dramatically out of favor. The house of pain these days, the moment you step out of the classic growth so you can buy down and out stocks that seem like they have less risk, youre taking your Financial Life into your hands this market is as furiously bifurcated as ive ever seen it. Thats leading to some serious gains for the underdiversified growth guys. And some incredible losses [ crying ] for those that own even a smattering of value. These how toxic these low risk stocks have become whats behind this ill let the stocks tell the story. I want to start with growth. Whats happening with growth is very exciting. I did a bit of a rant this morning on squawk on the street about how theres just too much attention being paid to few stocks, to just invidia and amd. Ive given my dog the last name of invidia and its deserving the recognition. You dont want everest eating or sleeping with you. But i gave my dog the moniker not to mock a great company, but because the growth rally has become so broad it needs to be addressed, because theres so much to this rally than a handful of stocks and we have to start treating it that way its the creator of f. A. N. G. I think i have a good read on whats hot and not as hot as those stocks are, let me tell you something, other than amazon, they dont hold a kabld toll t candle to other growth names like what . How about biotech, have you seen it since it became cheer that President Trump has appointed big pharmas best friends to price regulations, the biotech stocks, they have been nothing short of extraordinary buy buy buy buy buy buy with pleasure high quality biotechs have been zooming own as the news flows. Meanwhile, just get this one, in the last two months, regeneron has gone from 370 to 522 i would argue that information wouldnt have done much at all to boost the stock without this new, more positive backdrop that comes from a slower economy. Its not just biotech. J and j went from 122 to 135 over that same time frame. I think the main driver here is the rotation into the stocks of companies that do well when the economy is weak, or when theres deflation. And boy, is there deflation. It doesnt hurt that j and j is the ultimate stock to buy. Workday, service now, and red app have exceeded all expectations, producing winner after winner, including oracle, which crushed the numbers this very evening Cloud Adoptions is going main stream the growth has been from many different regions. We thought cloud was finished years ago when mark used to come on and say hey, let me tell you something, its phil murrays second inning almost any Semi Conductor enter fete of things, iot, whatever you want to call it, Company Connected with the cloud has been a winner. Any company that benefits from the stay at home economy has been incredibly strong in other words, it almost doesnt matter which growth stock you buy because they all seem to go higher. It i have a new one, its called buy in may an go away. When i am on next year at this time, i will string up anybody who says it, unless they say buy in may thats the new phrase. While these Growth Stocks have been fantastic, value has been horrifying with oil at 42 and threatening to go to 36, its a true bear market its hard to find a oil stock that hasnt fallen more than 20 . Some of them are down 30 , 40 sell, sell, sell. It doesnt matter if natural gas has held up fabulously or if youre in a pipeline stock with little or no exposure, youve been obliterated those part er er inshpartnershi waste. The drillers, service companies, its all a nightmare and oil is just the tip of the iceberg. Retail ahhh it has been so hideous, i find it hard to look at my Charitable Trust owns some tj max. But the stock opened lower, a new 352week low. And autos, the automakers, the auto parts stores, those stocks get pounded every day. Snap on, this thing is hideous the auto oriented tool maker, you would have thought it was a horrific quarter from the stock reacted. Snapon should be buying back shares left and right, but all i hear is crickets its no country for old value. What do we mean . If you want to be in value, you need mergers without big mergers, theres nothing to take these value stocks out of their misery so what happens . Merger, merger. So what happens . Look, were nearing the end of the quarter, so listen up, friends. The patterns that do best at the end of the quarter are imprinted right now on these days. Not in the last two days i suspect youre going to continue to see this brutal bifurcation, as oil looks like it could be headed to the 30s, taking out my 43 target the retailers remain under the spell of amazon, and the Growth Stocks just keep levitating unchecked. Valuation parameters are ignored, growth remains supreme and cheap stocks get cheaper and more painful to own every day. Maybe well get merger. But right now this market worships at the altar of growth and growth alone as the late mark cain always called me in the old days, im reverend jim bob in the church of whats working now and the answer is growth in any denomination john in texas, john. Caller booyah, jim. Thanks for taking my call. No problema caller and thank you for all the good info you continue to provide us amateurs. Really enjoyed you on the morning squawk i think favor is coming back tomorrow whats up . Caller my question is on exxonmobil given the current environment with the oversupply of crude, and the push for renewables, what is your long and short term outho outlook on the stock, buy, sell, hold mr. T came up with the answer when he said his forecast was pain. Exxon is a very good company and oil can bounce i believe but ive got to tell you, the problem is this, oil is so if you dont get a light rig count number on friday, it will be another leg down in these stocks so i have no conviction. Longterm its worse alternative energy has gotten so cheap, all these company also have to diversify. Right now, its just pain. How about joe in new jersey. Joe . Caller hello, cramer thank you for having me on its an honor. All right caller my question is on craft heinz. Ive owned it for about 2 1 2 years. With amazon buying whole foods, how will that affect the Food Producers . They have to get together there has to be mergers, but it takes two to tango someone has to capitulate. Im sure craft heinz wants to buy anything but the problem is they need a seller because they will not go hostile because theyre involved with warren buffett. Theres constantly a battle brewing, and now just right out in the open between growth and value. And growth remains supreme, whereas value. Youve got it. A picture is worth a thousand. Is it possible for me to be more animated . I dont think so im wondering if the answer isnt yes. Ill show you what i mean. With amd and invidia moving higher today, are you eyeing them ill tell you why its not a bad idea to curb your enthuse am and hold on to your hats i suggest you stick with merger. Cramer dont miss a second of mad money. Follow jimcramer. Or give us a call at 1800743cnbc miss something head to madmoney. Cnbc. Com. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. The future isnt silver suits anits right now. S, think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. My life that i have a particular quality. The word ive heard over and over is, animated. Ive also heard that i should not be any more animated that i already am well, we put it to the test earlier today. I want you to take a look at what the magicians at red hot adobe have been up to. Im looking at what i regard as the eighth wonder of the world. This is some sort of device where its looking at me and its mimicking me. This is not oh, my god, really we thought we would do this especially for you, jim. And its new product on character animator, using Artificial Intelligence. What we are trying to do is recognize your gestures. It will track you in real time weve only done this for homer simpson, the president ial candidates and now for you because youre passionate and animated its mimicking my eyes, my lips its making me into a walt disney i can create my own drawings and my own movies. Fabulous come on, amazing, isnt it lets get down to business some stocks do not know when to quit or how to quit. Just look at the juggernaut that is Adobe Systems its gotten really aggressive about embracing yes, you guessed it, the cloud. Today it made a brand new alltime high. Watchers of the show know ive been a big fan for ages. I own it for my Charitable Trust. The stock is up 40 year to date and based on the quarter adobe reported last night, its got much more room to run. Higher than expected revenue of 27 year over year this is a big company. As you saw this morning, i caught up with the terrific chairman and ceo of Adobe Systems. That was him talking about the drawings now you can see him talk about the company. This quarter had stunning growth youre not a Small Company 27 Revenue Growth its like everything kicked in at once. How do you do it its great to be back on your show here in new york. I think its the two tail winds weve been talking about people want to create and businesses want to transform were Mission Critical to both of them. Were driving tremendous innovation and executing but youre also offering at an income level that is extraordinary. Your model is so good. You give a great bargain to your customers. The recurring revenue here 60 billion on the call. The record revenue was 86 in the quarter, which is nice but were focused on the future. Cash flow is great i dont think that many times that are growing top and bottom line the way we are. Given the rate youre at, i couldnt find anyone with that high of growth its also important to point out that you were someone who saw mobility you understand that profitability can be enhanced. Thats something other than everyone else but facebook has failed at. How have you done that were helping businesses transform. All of the attraction is helping on mobile. Mobile is now 50 of the transactions so we figured out first how to deliver the great experiences on mobile devices on the creative side, we said to ourselves, creativity on mobile, its not just consumption but creation how can phones be used to capture color . How can tablets be used to draw . Using the right lens on our product development, thats how we do it for one very small fee, im not advertising your company, but you talked about the number of stocks you have a lot of people are terrified about the plank page youre trying to create something and through stock photograph photography, getting people started is really important and theyll get the benefit of what we do. What it tells me if i were a student now, i would be so much more advanced. You talked about this with President Trump when you met him on monday. Design and aesthetics have never been more important. I think as it relates to modernizing government, all businesses are transforming, so that the Customer Experiences front and center, theres no reason why the government shouldnt do the same. So the two issues, namely modernizing government and enhancing skills everybody talks about stem, thats important we talk about steam, because the art is going to be just as important. This Artificial Intelligence issue, i dont think people recognize what you can do in terms of animation, in terms of understanding what i want, and for the first time, what i want is on my screen. Theres no intermediary. You know, a. I. , the volume of data that we are tracking and enabling people to understand, that will help us be a better creative a marketer will be a better marketer and taking all of that data and ensuring we have the right business outcome its something that adobe is uniquely positioned to do. We processed more than 100 trillion transactions. Now, it felt also in this quarter that maybe were far earlier in Cloud Adoption than we thought well, the u. S. Cloud adoption has always been pretty good. We talked about how were now getting more significant Cloud Adoption in countries like germany, in japan. The other thing for us is we can offer differential pricing in different countries. We just released Creative Cloud in china so when you think about the emerging markets, we can make it affordable and put it in their hands. Will video be port snaablpore video grew 14. 9 . Everybody has cameras able to capture video. So the fact that its taking off, it was a great show for us. Now, its going higher, not lower. Youve been in business for a long time. People may not understand, these are things that are not supposed to happen. One of the things that we told the street when we started this transition, jim, we have different offerings. So looking at a blended average user across the offerings is not as important as in each of these offerings, were continuing to add value and increasing the average revenue. Somebody who comes in or acrobat or photo shop individual product is different from somebody who uses all the Creative Cloud applications but to your point, theyre focused on delivering value across each of those, which we believe will drive higher average revenue. I often think because of your pricing, i view it as being democratic and theres a verb, photo shop, there are few verbs created by technology we know kleenex is generic its a generic verb. Did you ever think that would happen adobe is fortunate in that pdf is also part of the vocabulary this is adobe we have a lot more in store for us that we dont know yet. Thats right. Let me ask you, can some of this be done with microsoft . I think both Companies Share this common vision of being able to help businesses transform they have invested in the cloud, and when you think about what we can do with the combination of what theyve done with dynamics and what we have done with the experience cloud and marketing cloud, we can automate sales and marketing with Artificial Intelligence so both from a vision, as well as an execution. And unlike a lot of other press releases you read, the products are in market. I want to talk about job creation a person can become an entrepreneur armed with adobe, you agree . Absolutely. On the enterprise side, when small and medium businesses want to create an online digital presence and want to have commerce as part of their future, they use us to have this online presence. Is this something again, when youre in washington, can you explain it to the president . Because i truly feel that sometimes i look at these pictures and the tone in the white house seems so glum. Is it as dplglum as the pictures for us, having the ability to enable our governments to modernize and improving the skill set, thats what adobe is passionate about and that can be in any country. Absolutely. And it affects the competitive of our country i couldnt agree more just a stunning quarter, stunning year and amazing term youve demockerytized the ideas in our heads thank you, chairman, president and ceo of adobe great work, sir. Coming up, redhat reported a red hot quarter last night cramer speaks with the ceo to hear whats behind it. We are hitting on all ndrit now, as more Companies Move to the cloud, more are turning to us as a partner to do that when mad money returns. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Believe it or not, being your investing coach has a lot in common with being a doctor. Both professions are all about the hippocratic oath, first, do no harm. Thats how i feel about invidia and amd, the two hottest Semi Conductor companies in the universe but most people that follow me on twitter hate my view, because they believe im way too negative on the two companies, or even that im encouraging short sellers to sell, sell, sell. To step up here and bet against these two great stocks however, and lets just make it plain so everybody hears, nothing could be further from the truth. I think for the moment, amd has a slight edge on intel and their chips are used to mine bitcoin or ether they have terrific gaming chips and gaming is a huge business. Amd under the leadership of lisa sue, has fixed the Balance Sheet. Thats allowed the stock to become more of a steady player, rather than a swing for the fences kind of name. In short, i am a big fan of amd and its stock. How about invidia . What can i sa