Whatsoever theyre pure slight of hand. Do i have more pencil . Stocks are also exactly what we need to help keep this market moving higher like we did today with the dow gaining 290, s p jumping and the nasdaq 2. 13 because apple and tesla gave you fantastic news about what it should be a 4 for 1 and 5 for 1 stock split respectively again, no new value but boy, do people love it theres a reason we have to feed the bull with more nourishing stock blitz and ill tell you why. Years ago individual investors deserted the stock market with the implosion of 2000, 2001 and financial crisis of 2007, 2009 they gave up on the asset class and started tiptoeing back, looked enticing and something would go wrong 2015 mini crashes. But in the past few years, beaten down individual investors, a lot of younger investors intrigued by low to no commissions. Finally started buying stocks again. Despite all the gray beards telling you its impossible to beat the market, despite the supposedly brilliant Money Managers warning you that the world was ending this spring, this new crop of investors just keeps coming and coming and coming the rally of the market and their emerging, come on, theyre no coincidence they werent deterred when warren buffet told them to stick the funds. Never been good at timing the market they made bad calls except for apple. He dumped at the bottom, wells fargo, whoa. The new generation of investors doesnt care about warren buffet they only know him from day. Theyre more likely to follow this guy from the outfit called bar stool. A. K. A. Davey day trader. Hes tfascinating and got into stocks making it impossible to bet on sports. I know hes not professing to know much beyond stocks go higher you may have a complaint with portnoy. If he starts to trade stocks in march and april, stocks do just go up, right i mean, that is his philosophy, which is why this guy is running circles around much more sophisticated professionals and they hate him. I bring it up because he embodies this Retail Investing revolution albeit inboyant way were trying to make money you get the picture. Individuals are storming the barricades breaking through the conventional wisdom to say it impossible to consistently beat the market like fang, i got him yet people are picking stocks and their own stocks from what i love i love it. If we can help educate you once youre in and weve nudgedthe process in a positive way, well then two cheers for capitalism 13 million traders together with their little john and fryer tuck fellow travelers, they are an incredible powerful one because they infiltrated twitter before we became covid pushers they were stopping me on the street and i love that, too. It was precovid. Know what the biggest complaint was . Stock prices were too high do i like price mull tippings, not relative the Favorite Companies because too high which brings me back to stock splits every professional knows that this is one share of amazon 160 and 100 shares of 31. 60. But in real life people arent calculators. If you have 10 to work with, it feels different than 3,000 stock. 10,000 is a lot of money. For 50. It reminds me of the 80s and 90s when tons of regular people make fortunes buying and selling individual stocks. The people wanted stocks and executives eager to please investors would give them splits and many investors in the market great singles and great singles of Financial Health and sales earnings of momentum, look at me, look at me back then occurring when any stock reaches the 100 barrier as individuals got pulled out, they level high share prices because that meant lower commissions when youre money manager, you pay for a share of basis so if apple does a 44 for 1 split it costs four times as much and they dont like that. In short, splits are for home gamers but bad for professionals. But until recently there werent that many home gamers. Now something changed. Elon musk, the visionary behind the Technology Company tesla decided to split his 1500 stock into five pieces giving them exactly what they want maybe it shouldnt go up but went up 13 today. Stock splits create no value whatsoever i keep doing this so you get the picture. This is no more pencils. It isnt two large pens i happen to have. Were talking about the difference between 1 and four quarters, exact same thing slightly different presentation. You can say it crazy for a stock to rally on the split and you would be right i say crazy like a fox because we know what happens after the split. This cohort of investors that love low dollar amount stocks will buy and hold the best names rather than the darn penny stocks they have been ignoring these and buying crap and buying good and the thing about Retail Investors is they can make more for Stable Shareholder base than hedge funds because the pros have no loyalty. Go long. Ceos wake up im going to be on this topic like white on rice it will be televised by me let me give you i know what you want ill give you Ten Companies that would be nuts not to split the stocks right here. Even as i know this creates no more value than im not wrecking any more pencils. All right. One, amazon, i mean, the world leader in retail and cloud infrastructure, are you kidding me two, alphabet which is showing signs of unlocking value if they bring more fresh entertainment, the robin hood crowd would eat this up. Three, chipotle. Benefitting the most thanks to the dig it will prital promise, netflix. Duh. Five, invidia, the ceo could have an elon musk style cult and five, definitely get the following if he split the stock. The guy is a modern day davinci. It helps businesses large and small harness the power of the internetme internet its okay. Seven. Hold it. Yes, costco. This is the best brick and mortar retailer on earth im a proud member but my wife im a gold star. My wife has the black card it has the lowest prices and shopping experience. Costco demanding masks when nobody else would. Now everybody does it. Eight is home depot. This is the story where individuals will say it was so packed, social distance, so packed and good at responding to the virus, the best place to fix my house up, i want to buy the stock. The stock is too high for the robin hood crowd nine, facebook cheryl, mark, i think the Public Relations problems are behind them in the move to help Small Businesses sell goods will be huge and finally ten, microsoft. This made it in the 200 club which is the cut off for what these investors are willing to pay. They loved microsoft but not at 200 and change. Sorry. Couldnt fix that with a press release. I go in all day. Dexcom, united health, shopfy knocking on the 1,000 club because they help people sell stuff online the idea splits mean when i worked at Goldman Sachs in 83 it was gospel. Stocks shouldnt matter but since when is the stock market logical in the real world with real humans, splits obviously make a huge difference to a rapidly growing contin gent of young individual investors they need to take their cue from tim cook and elon musk executives right now im just begging you look at what apple and tesla have done with with the stock splits besides the way ive been around longer than you have you have a no commission paying crowd. Chuck in arizona, chuck. Caller greetings mr. Cramer. How are you today . Having a good one how about you . Caller thanks for putting him in his place today. He was ill advised to come into my house. I have to protect the house. Caller i agree im glad you took control of your house. It was a suboptimal phone call whats going on . Caller let talk stock. I thought you limited on the unusual activity awhile back and i continue to hold it. It peaked at 145 and retreated back to the 120s the Earnings Report next week, do i hold or trim or win the register does dr. Cramer say . Its at 200 . I smell the powerful odor of greed and ill never go against them because they happen to be my friends but bulls make money, bears make money and hugs. Eric in michigan, eric. Caller how are you doing well. You. Caller im an avid mad money watcher. Thank you. Caller my question is at home, symbol ahome i went in june and was impressed with their variety and pricing it Discount Home improvement massive in size. The stock runs from 2 to 16 in the past two months. Do you think there could be more upside lee burg came on the show, the ceo and i thought this thing is a real mess he told a positive story and a positive story is playing out for way fafair, too. I want to know from him rather than from me all right. You guys notice the bottle do i have game or what anyway, stock splits used to happen all the time when a stock went over 100 and then they went away but now they are coming back and make a huge difference getting the right Shareholder Base so you guys have your marching orders. Im going to be gentle at first. Because i am jimmy chill on mad money tonight, i got earnings it looks like chuck robins maybe can tell us something. Can this stock market head higher and most of the Covid Vaccine stocks are taking a hit and multiple shots on goal tonight, dont miss my sitdown and stay with stock splits and stay with cramer announcer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 18007443cnbc m miss something head to madmoney. Cnbc. Com. Woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Lookentertainmentour experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. Never forget when a Company Reports earnings, there is nothing more important than the forecast but this is a sir mix a lot kind of but, that forecast can be tough to interpret. They reported strong results after the close with one notable exception. The forecast was impossible. They guided from 9 to 11 decline which was worse than wall street expected inflamed by a personnel shift that well get right into at the top. Even though cisco is transforming itself in a software and Services Play for years, thats more than half the business way ahead of schedule that sell enterprise harbor. You have to worry why the truly grim forecast, maybe this is where under promised and under delivered. Let go straight to the source of Cisco Systems to get a clear picture of the quarter and outlook for the future welcome back to mad money. Jim, great to be here thanks for having me. All right chuck, i trust your family is staying safe, team staying safe. Everybody is good and i hope your family is, as well, jim. Holding in there. There are very few cfos i would mention at the top matter of fact, one, thats kelly cramer and not related and shes retiring and i have to tell you, chuck, its a bit shocking when i heard it on the call and you could imagine there would be some people that say you know what . Shes so good i got to worry what is going on can you allay fears given the fact you and i both know shes probably among the top three or four in the country . First of all, kelly is amazing and a great partner for five years shes been in the job almost six years and telling me she wanted to do this, she was reminding me and telling me the average tenure of a cfo and exceeded that anyway, i think shes telling me shes going to focus on boards and investments and the key thing is shes agreed to stay on for whatever period we need to get a successor on board shes committed to our success and will help us through the process. Well end up with a great cfo. Big shoes to fill but im confident well have a great cfo to succeed kelly. I was confused with kelly in the forecast and down beat things youve said because you said that 2020 was not the year for corporate for enterprise 5 g. You said 2020 before the pandemic began was not the time, more of an investment time for you and next year is when youll shine. Why is this any different from what youve been saying . Well, jim, im not sure i think that i said that it doesnt feel much different today than 90 days ago we have a significant business that is related to Corporate Headquarters facilities and there are no people in the headquarters right now and so theres a lot of discussion around what does corporate real estate look like i believe once we get through the vaccine period that people will want to get back to the offices in general and it will be fine and well use this opportunity to actually shift our investments and prepare for that moment and i think that when we get to the other side of this thing, the strategy and the portfolio we have, well be fine. Now i have been on a series of phone calls and when theyre personal or on zoom and core prelt they are on web x. I have to believe even if everybody does stay away from the Corporate Headquarters, web x can be a big prf fofit center. Jim, i heard several comments about people who are questioning why web x didnt carry the day for us today and it grew double digits so we had good success with it. Its in the context of 50 billion business, you know, its a small percentage its a very small number in that context so, you know, we had success, it still growing and the teams are doing a great job. There is a whole lot of invasion thats planned over the coming months for that platform so were excited about whats going on and as weve talked about, you know, it is secure in its enterprise grade and thats where it shines. There was a note of hope that i wanted to drill down on. You said you saw some strength in the very high end of enterprise and in federal. Why wouldnt those be the beginning of more strength rather than less in other words, it starts with the richest and trickles or cascades down depending upon your outlook. Well, thats typically what we see, jim. That is an accurate assessment of what weve seen historically. I think the question is timing were sitting and watching the congressional debate right now about stimulus and so many of these mid size companies have actually benefitted from both the treasury and Congress Actions that weve seen to date so there is a lot of uncertainty what happens from here, a lot of uncertainty do we get this pandemic under control, some of the countries that opened up around the world have now begun to slowly close back down because of reemerging of the virus. We saw strength in the Service Provider business and strength in the very high end of enterprise and federal as we discussed and saw some countries as they come out that started to spin again it gives us hope that and a belief that when we get to the other side, the technology and the solutions that we built will be more relevant at that point than they were coming into this. A lot of us were rooting for you to get from 50 to 51 service and software and kind of felt when that happened, it would the margins would flip. Is it the pandemic thats keeping that down because this would have been a quarter where i said wow, if you told me they would be able to do this three years ago, i think the stock would be dramatically higher. Well, jim, i think the thing that happened with the margins this quarter was were now actually the d ram benefit is reversing on us a little bit and kelly talked about that and supply chain dynamics and done a great job. We also have heavy logistics cost during the quarter and, you know, there are pricing pressure that were seeing out of the marketplace now. Customers are stressed competition is aggressive but were committed and if you look at the Gross Margins today versus four or five years ago i think well continue to see that over the next three or four years. Let me ask you a question this is a dice roll. Can cisco step and pick up business while they become a National Security concern for everyone in the world . Well, for sure if customers are looking at replacing or any vendor with Technology Particularly in the routing platforms and backbone platforms, we clearly dont play in the 5 g radio space but those are areas we could potentially benefit. We had early conversations with customers and seen a couple customers move but i think they will work as hard as we can to win that business when it becomes available. Chuck, i know please tell kelly thank you for everything shes done for so many shareholders watching and i understand your conservatism is the way im looking at it. Always great to see you, sir. Thank you, jim. Thanks for having me. Thats chuck robins, chairman and ceo of cco sckisto is down perhaps down too much. Stick with cramer. We made usaa insurance for veterans like liz and mike. An army family who is always at the ready. So when they got a little surprise. Two . They didnt panic. They got a bigger car for their soontobebigger family. After shopping around for insurance, they called usaa who helped find the right coverage for them and even some muchneeded savings. That was the easy part. Usaa insurance is made the way liz and mike need it easy. I always ask the same question, can this juggernaut burst higher so tonight were going off the charts trying to get every single piece of information to help you this time well go to carly garner, she is a brilliant technician who is the cofounder of decarly trading and to get a better read on the situation because she called something very interesting to our attention. She loves to tell us about the Futures Trading Commission weekly commitments of traders report which tells you what large speculators, small speculators and commercial hedgers are dog we care about the large speculators meaning Money Managers and were seeing a very c