This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

[video] Jim Cramer Quick Take: Talking Twitter

NEW YORK (TheStreet) -- The Twitter initial public offering is quickly approaching. TheStreet's Jim Cramer told Debra Borchardt that Goldman Sachs, the lead underwriter, will have a tough task for pricing the stock because it needs to make sure investors don't overpay for Twitter.

He said Twitter does have impressive growth but it's important it's not overvalued as Facebook (FB) was when it made its IPO. Facebook is a holding in Cramer's charitable portfolio, Action Alerts PLUS.

So how much is too much? Cramer suggested investors shouldn't buy the stock if the company is valued over $20 billion. 

He said that while Twitter is not like Zynga (ZNGA), which came to the market at its peak, it does not yet have the advertising models of Facebook, Yelp (YELP) or LinkedIn (LNKD). Yelp and LinkedIn also have strong subscription models. 

We need to hear that Twitter has ideas in the pipeline and will potentially make an acquisition to boost its advertising model, Cramer stressed.  It has a strong mobile presence but Twitter is not as exciting or growing as rapidly as Facebook. 

So what happens if the IPO is a dud? If the stock initially pops higher on the first day of trading and then falls lower, Cramer would take a serious look at it, if the valuation goes below $20 billion.

Must Read: Sandy Exposes Federal Flood Insurance to Political Pressure

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.34 1.80%
FB $117.77 -0.67%
GOOG $695.49 -0.39%
TSLA $233.50 -3.40%
YHOO $36.13 -1.10%


Chart of I:DJI
DOW 17,770.29 -120.87 -0.68%
S&P 500 2,064.80 -16.63 -0.80%
NASDAQ 4,775.4250 -42.1690 -0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs