NEW YORK ( TheStreet) -- The Twitter IPO is gaining hype as time goes on and TheStreet's Jim Cramer told Debra Borchardt why the company should do well.
Equity markets have gotten more tepid in recent weeks, so this could be a less-than-perfect time for Twitter to make its debut, Cramer said. However, that would be good for prospective investors looking to buy the stock.
He added the company will do well because it should have actual earnings per share. The company is loved by advertisers and networks, which are both very willing to pay for the advertising on Twitter's platform.
Cramer suggested that the social media company should go with NYSE Euronext (NYX) for its IPO instead of Nasdaq OMX Group (NDAQ), which dropped the ball with the highly covered Facebook (FB) IPO. Facebook is a holding in Cramer's charitable trust, Action Alerts PLUS.While he said he's excited about Twitter's public debut, Cramer admitted he might not be buying shares. He pointed out that Tesla Motors (TSLA) wasn't very special when it first came public, and he's willing to miss some upside potential to see the Twitter earnings reports first. Cramer concluded that if the public gets too excited about the IPO, it might drive prices up too high. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell