Cramer Remix: I've got a memo for Netflix CEO Reed Hastings

Jim Cramer sees a transformation happening in how companies gain revenue, and it is clear to him that not all revenues are created equally.

"The Holy Grail here is service revenue that customers don't mind paying for because it represents a valuable asset that they cannot live without," the "Mad Money" host said.

Companies like Costco (NASDAQ: COST), Netflix (NASDAQ: NFLX), Amazon (NASDAQ: AMZN) Prime and Apple (NASDAQ: AAPL) have all figured out the valuable role that service revenues play. Customers don't mind paying these charges because it's not like some sort of a tax or bill that they resent handing over their hard-earned money for.

"Memo to Reed Hastings, I would easily pay double for it. Why not? Netflix is a ridiculous bargain given how much I love the original content and I'm addicted to their shows," Cramer said.

Read More Cramer: The Holy Grail behind Apple's revenue

From Apple (NASDAQ: AAPL) CEO Tim Cook 's perspective, his company has always stood for being able to build the best products on Earth to enrich people's lives.

"We produce products that give the people ability to do things that they couldn't do before. And in doing so, we helped change things," Cook said. (Tweet This)

That intention came under fire earlier this year when Cook refused to assist the FBI with unlocking an iPhone used by one of the two attackers who killed 14 people in San Bernardino, California, in December.

In an interview with Cramer on Tuesday, Cook said that Apple had always worked with law enforcement. As long as a valid warrant was presented, the company would provide any information that it had. What made the San Bernardino request different was that Apple was asked to create a product that did not exist. Cook believes that this could have put the security of millions of people at risk.

"That was a bridge we thought we shouldn't cross that was not good for America, and so we stood up … I think when you are approached like this you have to stand up for what you believe in," Cook said.

Read More Apple CEO Tim Cook: US government is dysfunctional

On a day like Tuesday when all of the major averages sank, many investors are tempted to sell in May and go away. But Cramer doesn't subscribe to that view. He advises selling what's run too much, and keeping what's valuable.

"I still think the major trends — the weaker dollar, higher oil and rebounding China — remain very much in place," the "Mad Money" host said.

On Tuesday, all three of these major trends were in reverse, and stocks gave up gains in response. But that doesn't mean those themes have gone away.

"You still got some pretty darned good moves in a whole different set of stocks that we least expected to rally. That is bullish, not bearish, and it means that sell in May and go away strategy isn't a strategy," Cramer said.

Read More Cramer: Despite stocks falling—3 signals make me bullish

Blackhawk Network Holdings is the leading global purveyor of gift cards and prepaid cards that serve various brands, and help thousands of retailers manage customer loyalty programs. With the stock down 27 percent for the year, Cramer was downright confused.

Last week the company reported results that seemed common for this earnings season so far. Revenues were lower than expected, even as the company posted a 14-cent earnings beat from a 32-cent basis. At the same time, guidance came in below what analysts were looking for.

Cramer spoke with the company's chairman Bill Tauscher, who explained that the mixed results stemmed from a large transition for retailers in the U.S. to EMV-compliant credit card systems. Many retailers were lagging behind in adopting the systems and some have put limitations on buying gift cards as a result.

"There are two things you need to know. The first is the retailers hate this. The chargebacks are killing them. In addition to that if you are a retailer the thing you know you hate to put friction in front of customers," Tauscher said.

Cypress Semiconductor has also plunged to $6 in February from its highs of over $15 in March last year. Since then it has had an epic 50 percent rebound from the lows.

Cypress is the top maker of chips that power touch screens and programmable systems that can be used with a number of applications in different industries. About a year ago the company combined with Spansion, which increased its exposure to static random access memory chips.

Last week the company reported a quarter with substantial year-over-year declines in sales, margins and earnings. However, guidance for next quarter was above what Wall Street was looking for. At the same time, Cypress announced it would acquire Broadcom's wireless Internet of Things business for $550 million.

The stock however did not bounce on the news, partially because it was announced that long-time CEO T.J. Rodgers was stepping down, effective immediately. Cramer spoke with Rodgers on Tuesday to gain further insight on Cypress and his transition.

"I have stepped down as CEO, I still on the board and I am going to do more technical duties. That is a succession plan which the board has looked at every year since I turned 65 … We've got some big deals, some great startups and I am going to go make some money for the company that way," Rodgers said.

In the Lightning Round, Cramer gave his take on a few caller favorite stocks:

CSX Corp: "Let's do Union Pacific. CSX is good, but Union Pacific is better. And then Norfolk Southern is second best. And then CSX third. That's the pecking order."

Treehouse Foods: "Remember, Treehouse does private label for everybody. So it's not really a Whole Foods story, but I totally get that and I like Treehouse very much."

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