Squawk on the Street CNBC Investing Club: Cramer’s Morning Take on Cisco 3/30/26
Mar 30, 2026
Discussion of a legacy tech giant being sold after rising costs. Conversation about how DRAM price increases undermined the company thesis. Concerns raised over a weak security division and market-share pressure from Splunk. Explanation of the decision process for cutting positions and raising cash amid market signals.
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Lock In Gains When The Thesis Shows Cracks
- Sell positions when a thesis shows durable cracks and lock in gains.
- Jim Cramer explained the Investing Club sold the rest of Cisco after rising DRAM costs and underperforming security revenue.
Component Prices Can Undo Revenue Momentum
- Rising component costs can negate strength in product demand and hurt margins.
- Jeff Marks and Jim Cramer flagged ongoing DRAM price increases as a key headwind for Cisco despite accelerating product orders.
One Lagging Division Can Stall A Big Company
- Weakness in a specific division can stall overall company growth even amid other strengths.
- Jim Cramer pointed to Cisco's security division, driven largely by Splunk, as underwhelming and a low-single-digit grower.