A rare combination of events in the stock market has convinced Jim Cramer that the market has risen on real strength, not just because investors are covering short positions. "When you can find companies that could be conceptually undervalued and their stocks run on that, even when they were already expensive on an earnings basis, then you have a powerful thrust that sends us higher even before anyone has time to ring the register," the "Mad Money" host said. The first sign of strength that Cramer saw stemmed from Apple, as he thinks the benefit of users switching from Samsung to Apple still is not reflected in the stock price. "I think the phone remains supply-constrained ... and therefore the stock is too low," Cramer said.



Chris Ratcliffe | Bloomberg | Getty Images

The possible called off talks for Salesforce to acquire Twitter had nothing to do with Twitter itself, Cramer said on Thursday. Instead, he said it related to LinkedIn. "It had to do with LinkedIn, specifically the breakdown in LinkedIn's stock from $205 at the beginning of February down to $100 a week later, when it collapsed on really terrible guidance after an OK quarter," Cramer said. Flash forward to the potential for buying Twitter. The stock fell 20 percent on Thursday, to $19. That is far from its $74 price tag at the end of 2013. Potential suitors for Twitter were intrigued by the decline and future possibilities of data, Cramer said. Cramer added that Twitter may have asked for a $29 per share price tag, which was steep, but Benioff considered it. But when shareholders began to rebel and hit Salesforce's stock, that could have cooled Benioff from pursuing the deal further. Pure growth plays have also come roaring back on the market, which prompted Cramer to consider cloud-based software company New Relic. New Relic platform helps companies understand, monitor and measure what business software is doing and how users interact with it real-time. Its analytics engine contains a dashboard that provides clients with insights into their digital operations. Cramer spoke with New Relic's founder and CEO, Lew Cirne, who unveiled the company's new product dedicated to supporting the infrastructure that software for companies like Amazon run in. "We think it delivers complete visibility that our customers are looking for and it increases our total addressable market by a very substantial margin," Cirne said



James Park Mark Neuling | CNBC