Cisco Systems, Inc. (NASDAQ:CSCO) and Google Inc (NASDAQ:GOOGL) are on the opposite sides of the spectrum when it comes to successfully navigating dealings with governments in Europe, says Jim Cramer.
The Mad Money host compared the two technology veterans in a Squawk on the Street discussion on CNBC and points out that maybe Google Inc (NASDAQ:GOOGL) has been wrong with how it has gone about dealing with the authorities in the European Union. Cramer contrasts this with Cisco Systems, Inc. (NASDAQ:CSCO)’s strategy.
“[…] this is bad. This is like Microsoft not getting it. [Google is] a taker of jobs, not a maker of jobs. […] Cisco knows how to handle Europe. You create jobs. Google just gives them the Heisman,” Cramer says, referring to the blocking stance of the person on the Heisman Trophy.
Cramer notes that a few months ago, Cisco Systems, Inc. (NASDAQ:CSCO) CEO John Chambers went to France and unveiled a plan to invest $100 million in French startups. The plan also included working with 200,000 people to educate them about cyber security and how to create new companies, Cramer notes.
Google Inc (NASDAQ:GOOGL), on the other hand, does not do highly-visible programs like this in the region, the host implies.
David Faber prods Cramer, however, whether the way to handle Europe – specifically, to avoid antitrust issues with authorities in Europe – is to create jobs even if those jobs are not profitable or not needed. Isn’t it possible, Faber points out, that the case against Google Inc (NASDAQ:GOOGL) has merit and Cramer’s “cynical” view is wrong?
Cramer, however, remains adamant that creating jobs and pouring money into the region can affect how much scrutiny a company gets from authorities.
“Europe is different. You create jobs in Europe, they go easier on you. If you do not create companies in France, and you direct traffic in France [more to your services than to competitors], then you are going to fall prey [to investigations]. It’s just the way the world works, David. I wish it didn’t work this way,” Cramer tells Faber.
Meanwhile, Cisco Systems, Inc. (NASDAQ:CSCO) CEO John Chambers is also quoted in the discussion saying that the world of technology companies are up for a substantial shake up as the world drives further into digitization.
Cramer says that Chambers clarifies in his earlier interview with him that the way to work in Europe is to work with Europe.
Dmitry Balyasny’s Balyasny Asset Management increased its stake in Cisco Systems, Inc. (NASDAQ:CSCO) a massive 3,349% quarter over quarter to about 2.04 million shares by the end of 4Q2014. Ryan Pedlow’s Two Creeks Capital Management owned 215,131 Google Inc (NASDAQ:GOOGL) shares by the end of the same quarter.
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