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

Apple Should Do Us a Favor and Buy Twitter

By: Rocco Pendola | 07/23/14 - 08:00 AM EDT

NEW YORK (TheStreet) -- Two points stuck out at me in a Jim Cramer piece last week at TheStreet where he compared Facebook (FB) to Twitter (TWTR):

... advertisers tell me (Cramer) they like Twitter because they get promoted without ever having to pay Twitter anything and they like Facebook because even though they have to pay Facebook and pay it handily, the results are fantastic.
Facebook spends a huge amount of its time on its conference call talking about the return on investment advertisers crave. Twitter spends a tremendous amount of time on its call defending its existence and the relative metrics it wants you to evaluate it by ...

Advertisers see no need to pay Twitter for results they can achieve for free and Twitter doesn't talk much about results because it's too busy clumsily telling investors what it thinks it is.

It's reassuring to see this coming from an authority such as Jim. Because it lends a considerable bit of support and credibility to the same and similar things I've been saying about Twitter for months (see, e.g., April's What Twitter Needs to Do to Survive).

To follow on Cramer's thoughts -- it's quite straightforward.

Twitter CEO Dick Costolo is in over his head. And he must go. Granted I run some risk making such a strong statement six days ahead of Twitter's Q2 earnings report, but the results, even if positive or plain good, don't change the Twitter reality few people in the tech and financial media are willing to talk about. And they're not willing to talk about it because too many media members carry schoolgirl crushes on Costolo. Their friendships with the CEO obscure their "reporting" and do you a disservice.

As CEO, Dick Costolo barely inherited a company. He more so inherited an idea. Somebody else's idea. An idea that turned into something not even the founders could have imagined. Now Costolo's tasked with turning this big idea into a big business. That's either an impossible task (not all big and great ideas can be successful businesses) or Costolo is not up to the task. I'm not certain about the "either" as there's got to be somebody out there who can make Twitter a viable business, but I'm quite convinced about the "or." If Costolo was the guy for the job he would be able to express a clearer, more reasonable vision for Twitter than than he has. Then he would go out and execute.

That's where Apple (AAPL) comes in.

  1 2

Rocco Pendola writes for TheStreet. He lives in Santa Monica. Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.

Markets

DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Rocco's Tweets

Brokerage Partners

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
Real Money Pro

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Trifecta Stocks

Trifecta Stocks analyzes over 4,000 equities weekly to find the elite 1% of stocks that pass rigorous quantitative, fundamental and technical tests.

Product Features:
  • Model portfolio
  • Trade alerts
  • Recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
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
  • Upgrade/downgrade alerts
Dividend Stock Advisor

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Breakout Stocks

Bryan Ashenberg, using sophisticated stock screening and fundamental research, identifies potentially explosive small and mid-cap stocks.

Product Features:
  • Model portfolio
  • Small-cap and mid-cap focus
  • Intraday trade alerts
  • Weekly roundups
Options Profits

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
Top Rated Stocks Top Rated Funds Top Rated ETFs