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Sometimes things get too expensive. So we buy something else. That's how we've all been taught to shop, right, for just about everything. And the stock market is no exception. When you don't have a lot of money coming into the market and there is real competition — that 30-year Treasury is now paying you 5.26%, virtually risk-free — you want to steer clear of pricey stocks and you want to pile into the cheap ones. It's hard to discern this kind of rotation when you look at the averages. With the Dow gaining 295 points today, the S&P rising 0.46%, the Nasdaq advancing 0.45%. But you can see it when you look underneath. You just need to know how to look.
I think that lots of people who aren't that familiar with the stock market might not know how to judge what's cheap versus what's expensive. That's why I wrote the book, "How to Make Money in Any Market," which you can get a signed copy of, by the way, if you join the CNBC Investing Club. Now, unfortunately, many people are like my late mom, who looked at stock prices, I guess you'd call it, in a vacuum. As mom saw it, disc drive maker SanDisk at a price of $1,553 would be considered far more expensive than enterprise software company MongoDB at $375. Nvidia priced at $224 might seem pricier to her than, say, ServiceNow at $136.
But unlike when you're shopping at the supermarket or car dealership, the sticker price means very little in the stock market. We always want to compare stocks on an apples-to-apples basis. And there's nothing apples-to-apples about the share price. All these companies have different numbers of shares. They have different earnings per share. So where the stock's trading, that's a pure abstraction — something that really doesn't tell you much at all. Now, if you want to truly compare them, be able to figure out what's expensive and what's not, you need to figure out what the companies are supposed to earn for the next 12 months, readily available at almost any stock site. Then you divide the stock price by the earnings, and you get something called the price-to-earnings multiple. Comparing P/E multiples is the apples-to-apples way to value one stock versus another.
Or maybe you want to think about it algebraically. You want to figure out the M. You divide the stock price P by the earnings estimate E, or P divided by E equals M. When you're valuing a stock, you're solving for M. And M is the secret sauce behind everything in this business. Let's look at it in action. You'll understand. SanDisk is supposed to earn $2.12 a share. You divide the price of the stock by that estimate and you get a price-to-earnings multiple. It comes out to about 7.3. Considering the average stock in the S&P sells 21 times earnings, that's a steal. Enterprise software company MongoDB, on the other hand, is supposed to earn just under $6.50. You divide that into the stock price and you get an M of nearly 58. Hmm. SanDisk is trading at 7.5 times earnings. See, that's a heck of a lot cheaper than MongoDB trading at almost 58 times earnings. No wonder the latter plunged 13.5% today after a decent quarter. It's too rich in this market. And too rich equals sell.
Same with the Nvidia versus ServiceNow comparison I gave you. When you divide Nvidia's $224 stock price by the $9.26 earnings estimate for this year, you get 24 times earnings. When you look at the $136 price of ServiceNow and you divide that by the $4.07 earnings estimate, you get 33.6. I know it's counterintuitive, but Nvidia, with the $224 price, is just much cheaper than ServiceNow at $136. If you want a more aggressive way to compare two stocks, just go out a year. Nvidia is supposed to earn over $15 a share next year. That means it's selling for a measly 14 times next year's earnings estimates. ServiceNow, on the other hand, is a multiple of 27 times next year's earnings estimate. Much more expensive.
I go into this E times M equals P exercise. And no one else does it because when they hear algebra, when they hear math, they get scared. But I have to do it for you. I go into it because right now, at this moment, managers who run trillions of dollars are unmasked trying to select stocks that are relatively cheap — low price-to-earnings multiple — versus those with high price-to-earnings multiples. They want to have less risk. It becomes too dicey otherwise. Nobody on Wall Street wants expensive stocks when the bond market is on the warpath like this. So they sell the high-multiple stocks and crowd into the low-multiple stocks.
Why is this price-shopping comparison so important right now? Because there are some real misperceptions going on in this market. For example — and I hear these all the time — I hear investors are fleeing the artificial intelligence trade, or they don't want to own any technology anymore, or the data center's become a nightmare, or worst of all, the momentum trade is broken. Those are all wrong. Every one of those — you heard them all day — and they're wrong. They're getting the symptoms right. These groups truly are going down, but missing the real cause. Very simply, what's going on right now is that big money managers are fleeing stocks with high price-to-earnings multiples wherever they're found, because they're too risky. Instead, they're rushing into, say, Dell, which sells for less than 20 times earnings.
Dell reported a great quarter last night, and when the smoke cleared, we saw that it could earn $25 per share. That's a terrific low-multiple price check. Buyers flocked in. That's why the stock closed at $492, up 16%. The buyers aren't fleeing the data center or tech in general. They're just fearful of high-multiple tech stocks, data center or not, because they have to be perfect. MongoDB is a really good company, but its quarter wasn't perfect, so it got killed. Of course, if stocks have run up big, you might get profit-taking unless they report incredible blowouts.
People might blanch at Palo Alto Networks selling for 79 times earnings. So they're sellers. But Nvidia is much cheaper — 24 times earnings. They're buyers. Why do people ever buy higher price-to-earnings multiple stocks to begin with? Well, there's a reason. Because when rates are low, like they were, profits might be sluggish. So buyers are willing to pay extra for companies with powerful sales and earnings growth. High-growth companies get higher multiples than lower-growth companies. But there are anomalies. For example, what the heck is Nvidia doing with such a low price-to-earnings multiple despite the phenomenal growth? What's it, 14 times next year? Come on.
The answer is that there are many money managers who believe Nvidia's numbers are peaking because of this circular reasoning stuff we keep hearing about. Others think it's because of a pause in spending, because of political opposition to the data center. Therefore, the critics believe Nvidia is making all these investments in its customers just to keep the balls in the air, to continue to make money by paying its customers, who then pay Nvidia back. This process is called circular financing. It's considered a real sign of danger because we saw these kinds of transactions in the lead-up to the dot-com collapse. I vehemently disagree.
Nvidia's Jensen Huang knows that the companies using his chips are starting to make a ton of money. So why not back them up? This is something I asked Dell's CFO last night. He confirmed that right here on this show. Companies are relying on Nvidia's equipment and they're making fortunes. We're finally at the moment where customers are beginning to clean up from this technology. That's why Dell's up so much. They told you that they're very good at supply chain management. Some of that supply chain management is about getting enough Nvidia, because those chips are in short supply. Dell's multiple is low because people didn't believe they could make as much money with Nvidia's wares. Last night we found out, and look what happened.
So the bottom line — I know it's complicated, but I had to try it. When you put it all together, you realize there's no revulsion to the data center or the AI stocks or even momentum. It's just that when bond yields go up, money managers dump their expensive stocks and swap into the cheaper ones with lower PEs, price-to-earnings multiples. As it happens, many of the data center plays have high multiples, but the ones that don't, like Dell, they're doing just fine.
Thomas in Georgia. Thomas.
Jim Cramer, thank you very much. This is the second time that I've had an opportunity to speak with you, and you always give me good information. Thank you for the book that I received and the autographs. That's something I'm going to always cherish.
You're really terrific, sir. Thank you. Good way to start the show off. How can I help you?
Well, a couple of days ago, you raised my eyebrows when you announced that the club was letting go their position in Corning to take advantage of the massive profits that you made and to wait until we can sort everything out with these data centers. I had taken positions in Corning back in June and July of this year when I was thinking I'm buying on the dip. Now I'm down 24%. Should I take advantage of some tax-loss harvesting or...
This is now — this is a very tough one, and we thought long and hard about this because I've got a principal rule, which is never turn a gain into a loss. And I was fearful that Corning and other high price-to-earnings multiple stocks would do that. And I said, listen, you know what I'm going to do? I'm going to step out and then I'm going to get back in. I said we had to be more nimble. That's not my style anymore. That was my hedge fund. But I think it's going to come down more and then we're going to get back in. And you're a member of the club, and you'll know exactly when we say to do that. But that's a tough one. I know it's just that I was not going to turn a gain into a loss. That's too precious. Let's go to Jeff in New York. Jeff.
Hi, Jim. Sentiment about Oracle stock is largely influenced by concern over their loans for the data center build. However, when you take into consideration the expanding moratoria and negative sentiment about data center production, doesn't that increase the value of data centers that Oracle currently has approvals for and is currently building, since the current sentiment will throttle the competing data center capacity?
Well, Jeff, that's a good way to look at it. So it's a little too optimistic. People have gotten comfortable with the idea that Oracle is going to put up as many as they can. So anything that indicates that they're not going to be able to put up as many is going to make it so Oracle's stock goes lower. I would prefer to just stick right point-blank with Nvidia. And by the way, I think Dell is still a terrific stock to own even all the way up here.
All right. Now, I had to give it a try, people. I know it's very hard. And I spent years trying to explain this darn M, but I have to try to do it. You need to know what moves the stock. When bond yields go up, money managers rotate out of high-multiple stocks and into cheaper ones. And that's what's going on. Now you know how to identify those. Hope you can take advantage of the moves. On tonight, PG&E has taken a beating this week. Has this utility lost its spark, or is the sell-off creating a buying opportunity? I've got the CEO. Then, is it time to circle back to Cardinal Health? I'm checking the pulse of this healthcare heavyweight and whether the stock can keep delivering in this market. Plus, I'm getting the state of cybersecurity with the CEO of Rubrik. So stay with Cramer.
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Boy, it's been a tough week if you own any California-based electric utilities. Last weekend, a deal to reform the way wildfire liabilities are treated fell through, sending stocks like PG&E and Edison International down roughly 20% over the past three days. Right now, if a regulated utility in California causes a wildfire with its power lines, it can be held liable and on the hook for major financial penalties, even if they have insurance policies in place. The law lets the insurance company sue the utilities to recover the money they pay out. Utilities have been trying to cap the amount they pay. And it looks like they've been able to get this through the legislature. But then, I don't know, at the last minute, the deal fell apart. Now, it's unclear what's going to happen.
This morning, PG&E, the gas and electric utility in Northern California, said they're exploring strategic alternatives. They also announced they'll be cutting back on their capital spending next year. Not safety — capital spending. So, what's going on here? Is it possible the stock's worth buying on weakness? Let's check in with Patty Poppe. She's the CEO of PG&E to break things down. Ms. Poppe, welcome back to Mad Money.
Thank you, Jim Cramer. Great to be with you as always.
Okay, so Patty, you know, because I contacted you this weekend, I found this very hard to understand. I also found it very wrong, but let's leave that aside. Maybe you can just explain the core wildfire liability reform issue so that we at least know what's going on.
Yeah. So this wildfire reform has been two years in the making. There was a report drafted at the order of the governor a year ago to describe the problem, and everyone agrees the cost for our customers is too high of the wildfire liability construct. So given that cost being too high, reforms were possible. A couple lines of text in a proposed law would make all the difference in the world to my customers. And that fell through.
Well, I know that you've been incredibly diligent in getting your company's balance sheet back and also fixing wildfire problems and delivering great lower costs to your customers. I'm trying to figure out, one, why you would possibly be, let's say, damaged by that, because it seems like you're doing everything right, and two, what could a strategic review accomplish?
Yeah, you're not wrong, Jim. We've done the hard part. We've done the real work to transform this company. We're six years into a major transformation where we've reduced our wildfire risk dramatically. This is our fourth year without a major wildfire. We've lowered rates five times in the last two years. We've improved reliability by 30%. All that to say, we need this liability reform done to unlock the value and to bring the capital in from the capital markets. If investors and banks see the risk too high, they charge more or they don't enter the stock at all. And it's actually just very targeted fixes to the current legislative framework that would make all the difference in the world for our customers.
Our debt costs are too high specifically because we made a real pathway toward investment grade coming out of bankruptcy six years ago. We've been on our track to investment grade credit ratings, and we're just at the cusp, and we've been in a holding pattern waiting for this legislative work to get done. That would save my customers $600 million just in the last two years of debt issuances. This is real savings for customers. It's a matter of a simple legislative fix, and we're counting on the legislature to take that action.
So, what does it do to cut 2027 capital expenditures then?
Yeah. So we announced today our strategic review as well as a $2 billion capital cut. We have an $11.4 billion capital plan after that $2 billion cut. So it's not zero. We're not going to zero, but we've reduced it by $2 billion. And that's going to delay housing starts. That's going to delay renewable energy interconnections to the grid. That's going to delay our connections of new and growing load here in California. California is growing. And we power that. And we need access to low-cost debt and high-quality investors to make that happen.
And look, we're not done yet. Speaker Rivas yesterday held the bill, as you suggested. He said they want to get back to work. They've scheduled some hearings. Governor Newsom has been adamant that this work needs to get done. We really are hopeful that they'll be able to find their way to get back to the table and finish the job for our customers. The people of California are waiting.
Well, were they aware about how you put all that stock in the trust and you banked this? You had to hurt the shareholders. There was nothing you could do. You explained it very clearly what was going to happen. So it wasn't like someone came in and said, 'I'm shocked,' because you laid it out. But I had thought you had done the hard work.
We've done the hard work. You are not wrong, Jim Cramer. We have done the hard work. Look, the fundamentals of this company have never been better. Our foundation of operational safety, wildfire safety, reliability, affordability — that construct exists. My people have delivered for California. Now, we need our legislature to finish the job so we can take it to the next level and let this racehorse out of the barn. We've got a great company to serve the people of California, and we just need a simple legislative fix to get that done.
Now, there were four that downgraded the stock. I guess they just kind of feel like — I can't get a handle on it because, I mean, to me, I wanted to say just go buy it. But I myself did spend a lot of time on this, and I came back and I said, I really hope that Patty gets it. I really believe that the governor's for it, but this California legislature, from the day that I followed it as a reporter in 1978, has been very hard to gain.
Well, look, they've done a lot of hard work in the years gone by. They've set up actually an industry-leading liability framework for wildfire. But there's a real tail risk that has spooked investors that can be fixed. This tail risk can be addressed and a liquidity question can be resolved with some simple language, a simple fix. The existing legislature needs to build on the actions of the past. The governor has led this process for eight years. I know he's been clear. The California Earthquake Authority report was clear. Our CPUC was clear. Everyone agrees the status quo doesn't work for customers. Let's get that done, and then investors will be the beneficiaries of unlocking that value for customers, lowering rates, making our debt more affordable, and getting to investment grade once and for all.
Okay. And tell our viewers what it would mean to be investment grade. What would it allow you to do?
Well, it would allow us to pull that $2 billion back into the plan. It would allow us to grow our earnings at 9% plus every year. It would allow us to continue to grow our dividend. It would allow us to be one of the premier utilities in the world. I serve some of the best and brightest customers. I serve Northern California, the Bay Area, Silicon Valley, the Central Valley, the great breadbasket of the world. I have the Diablo Canyon nuclear power plant. I know one of your favorite places.
My favorite. I was there when I got commissioned.
All of these assets are waiting, and they're trapped like, you know, we're a racehorse in the barn just waiting to get out and serve the people of California at a lower price, higher reliability, more safety. But we need to get this legislative framework resolved once and for all.
Well, I've got you because you're a trusted utility person from the CMS days. The data centers — are you still — I know you had room for them. I know if it's done right, it can't be bad. It's just that a lot of people aren't as savvy as you and didn't know to be able to extract the worth on behalf of the other ratepayers. How is that going for you?
It's going great. We have 1.8 gigawatts in our plan for 2030. That's preserved in spite of this capex reduction, though the capex reduction will slow down bringing on that beneficial load growth.
It's a simple pricing issue, Jim, on the data centers. If you price it right, it can be beneficial in everybody else's rates. We've got the pricing right in California. We've got the capacity on the grid waiting to serve. Now, we need to make sure we've got a liability framework that allows us to attract the capital to do that great work that we love to do and hook up those new customers and lower everybody's rates.
Oh, just be sure. Now, this is what we're talking about with wildfire legislation. This literally could be happening right now. There may be something that happens tomorrow, right? It's not just because the legislature's closed that it means it's over. They can do a special session.
They can do a special session. I hope they do. It will take a couple days because they have to have 72 hours before a bill's in print before they vote. But that'll be a good signal to investors that if that bill hits the print and it meets the minimum, the probability of it passing becomes really high. But they first need to get something in print and then call that special session and make sure that we finish the job. We're so close. We're so close. And I just think that under the leadership of Gavin Newsom and Speaker Rivas, I think they can really do the job to make it right for our utility customers.
I followed your career. I've followed your career all along. I've followed your career since you took over this place and saved it and saved it and saved the customers a lot of money. I have to believe they let you in. They have to let you win. This is Patty Poppe, the CEO of PG&E Corp. Patty, thank you so much for speaking up.
Thank you, Jim. We're always here for our customers. That's who we need to win. Our customers need to win.
All right, everybody's back after the break.
Coming up, with the markets in motion, Cramer's making the case for Cardinal Health as the safe haven you want to be in. Next.
This is a very different market from what we were dealing with just a week ago. Last Friday, our new Fed chief Kevin Warsh went on the warpath against inflation. And then this week, the war with Iran got explosive again, pushing up the price of oil. Now, all that means that bond yields are on the rise. When that happens, Wall Street loses faith in high-growth, expensive tech, even when major tech companies keep reporting spectacular earnings. It doesn't help that data centers have become pretty unpopular in this election year. So we've seen lots of money rotating out of expensive tech and going into sectors that really thrive when times are tougher, like healthcare, which brings me to one of my absolute favorites, and that's Cardinal Health.
That's a drug middleman that we own for the charitable trust. Middleman, I should have put in quotes because people don't like to call it that. Cardinal, along with McKesson and Cencora, the old AmerisourceBergen, are the three big drug distributors. Politicians from both parties love to criticize these guys, but all three stocks have been incredibly great long-term performers. Why? Because they perform a valuable service for the drug makers. Cardinal and its compadres help handle the logistics side of the...
pharmaceutical industry. And within this group, Cardinal's been running circles around McKesson and Cencora. They consistently put up the best numbers because this company has gradually become less of a commoditized service provider and more of a specialized player, higher multiple. Cardinal's been making major inroads with specialty pharma, meaning more complex drugs with unique handling requirements. And they made a big push into generics. At the same time, these guys have the small medical products distribution business. And lately, they've been getting into more auxiliary businesses: at-home health solutions, nuclear medicines, patient services. These are areas with higher growth and higher margins than the traditional drug distributor business. Put it all together and Cardinal Health's been cleaning it up.
After an odd pullback from early March through mid-May, fueled in part by a misunderstood quarter in April, the stock started rebounding. Stock went from hated to loved practically overnight. It had drifted below 180 at its lows and we bought some more for the Travel Trust after that April quarter. Then by the end of June, it charged up to $240. It now stands at $245. But if you go back to March, the stock's been basically marking time since then, even as the underlying company's got a lot more attractive. And that's your opportunity. Late July, Cardinal announced a pair of very intriguing acquisitions. They bought the diabetes health business of AdaptHealth and a company called Strive Medical, which is a specialty medical supply provider, for a combined $235 million in cash. Small, bold ones. These are exactly the kind of faster-growing, higher-margin businesses that Cardinal's been expanding into. Then three weeks ago, Cardinal reported a very similar quarter to what we saw in the spring that crushed the stock. They delivered a substantial revenue miss, okay, paired with a hefty earnings beat. Even when you exclude tariff refunds, this still would have been an 18-cent beat on $24.20 per share. Free cash flow was also up 11%, and the analysts were expecting it to be negative. So why does Cardinal keep missing the revenue numbers and still beating the earnings numbers? Okay, first, much of the revenue pressure comes from lower drug prices caused by the Medicare negotiation provision in Biden's Inflation Reduction Act. That's throwing the numbers off, makes Cardinal's sales look weaker. But because they operate on a fee-for-service model that relies more on drug volumes, it doesn't hurt the business. These guys take a fee for every unit they move; they don't need to care about weaker drug pricing. The other part of this is Cardinal's expansion into generic drugs and biosimilars. Generics bring in lower revenue because they're cheaper by definition, but they're high margin for the drug distributors and they move a lot of volume. Remember, volume is where Cardinal really makes the money. Volume. Okay, that's why I keep shrugging off the revenue misses. Now, all the same time, Cardinal issued its full-year forecast for the 2027 fiscal year, which ends next June, and that forecast was excellent. While Cardinal Health doesn't offer sales guidance for the full company, management said they expect their core pharmacy and specialty solutions segment and their global medical products and distribution segment to both put up growth in the low to mid single digits. The company's other segment, which houses many of the higher-growth businesses they've been expanding into, expects to put up low double-digit growth. That's excellent. More importantly, Cardinal said they can earn between $12.40 to $12.60 per share in 2027.
Wall Street was looking for $12.80. That implies 13 to 15% earnings growth, and they gave an excellent free cash flow forecast. Now, initially the stock soared in response to the quarter. It traded up nearly 9% at one point of the day, reaching a new all-time high of 258 and change. That was strange. Then a wave of profit-taking ensued, and Cardinal ended up just up 1.3% to 240. Now there was some back and forth in the conference call about the drug pricing headwinds. Basically, the analysts pressed management whether price caps from Medicare negotiations would result in drug makers negotiating lower fees from Cardinal and its peers. That might have contributed to the stock's decline from its highs. But I thought the very smart CEO, Jason Holler, answered those concerns well, explaining that the company's in close contact with both its customers and the government, and they sounded pretty confident about being able to maintain their fee structure. We wrote that up for charitable trust members. It is a very good memo, and that's why I think you're still getting a great entry point here. Cardinal Health had a good week, up a quick 10 points over the last two days, including a $6 gain today because money managers are rotating quickly into these high-quality healthcare stocks away from the high-growth technology stocks. And we also know because of higher interest rates and higher oil. Still, even after this bounce, the stock sells for less than 20 times the midpoint of its fiscal 2027 earnings forecast. That's three turns, as they call it, below the average stock in the S&P 500, but it's much better than the average stock. As I see it, that's a very fair price for a company that should be able to put up earnings growth in the mid-teens. Very few of those these days. Here's the bottom line. In a world where investors are terrified of higher oil and higher interest rates, I think a stock like Cardinal Health can be a big winner. This company's been doing very well lately, and the stock hasn't gotten enough credit for it. But now, we finally have a backdrop that makes Cardinal too attractive to ignore. Let's take some calls. Let's go to Gordy in Florida. Gordy,
Good afternoon, Jim. How you doing?
I am doing well. How about you, Gordy?
Fantastic. You're so smart. You're so intelligent on all these stocks. I got...
No, if I was so smart, I would have told people to buy Snowflake tonight. I didn't do that. So, tell me what's going on.
Okay, I got a stock that's been up 21% this year. They're raising the guidance from 7.90 to 8.10. Bullish outlook. Price target from Truist 118 all the way up to Jefferies 126. 20 billion in technology over the next 10 years. Valuation 28 versus average 54. They're saying a 25% upside, 3% dividend. David Joyner is running a great company. I think I should keep it for about a year, Jim.
This is CVS. Dave Joyner does a fantastic job. I think you should own it. You don't trade it. It's a terrific stock, and we want to buy it for the Travel Trust. That's how much we care about it. We think it's absolutely a sensational situation now. Oh, that's it. Oh, darn it. All right. In a market where oil and rates dominate the headlines, a stock like Cardinal Health is going under the radar, and I think it could be a very, very big winner. Much more Mad Money. I'm sitting down with the CEO of Rubrik after earnings to see what's ahead for the cybersecurity company. Then the data center boom has plenty of critics. I'll tell you if their arguments hold weight, and all your calls rapid fire in tonight's edition of the Lightning Round. So stay with Cramer.
What just happened to the stock of Rubrik? That's the data security company. It posted a very strong quarter last week. I see its stock drop 13% the next day, and it's been drifting lower ever since. Now this is kind of crazy, people. Rubrik posted a big revenue beat. It earned 20 cents per share when the analysts were looking for 4 cents. They raised their full-year forecast for revenue. Their annual recurring revenue was sensational. Margins, free cash flow, good too. Stock got hurt. Now some of that's because Rubrik's billings, some people say, came in a little light. I think it's mostly because the stock had run up like crazy in the month before the quarter. It just came in maybe too hot. Stock's up 14% for the year. So are you getting a buying opportunity here? Let's check in with Bipul Sinha, the co-founder, chairman, and CEO of Rubrik. Bipul, welcome back to Mad Money.
Jim, so great to see you.
Well, I've got to tell you, the ones that I follow the most, your industry, which is your company, CrowdStrike and Palo Alto, all been trading down. And I think a lot of that, this is my own judgment, is that it's been doing really, really well. And some people are kind of rotating into other areas. I don't know what I could possibly be missing. I think this quarter was excellent.
This was our 10th consecutive quarter of outperformance. We have been beating and raising. And if you look at this quarter, we had an excellent result. Every aspect, from top line to cash flow and profitability, we made significant advances.
Well, some were saying when I was reading the research portion, I kind of gave up about what's happening here. Net retention slipping a bit, moderation in second half for the net new annual recurring revenue. I didn't see it, but that's what some of the analysts were saying.
Look, we have been at the intersection of AI and cybersecurity, and what is happening with Mythos and frontier models, it is bringing the Rubrik platform and cyber resilience front and center. That's what is driving our business. We are landing bigger deals than ever, and our customers are coming and repeating purchase with us. And so if you look at our results, it reflects the demand in the marketplace, and we are winning the cyber resiliency market.
Well, and that's what, look, I talked to George Kurtz today. He's the CEO of CrowdStrike, and he's a partner of yours, and he said the same. He said, 'Look, things are just going terrific.' What are you and George doing at CrowdStrike?
