Jim Cramer Explains Twitter's (TWTR) Latest Quarterly Earnings Report - TheStreet

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says investors sometimes own a stock and are just aghast when the earnings report comes out, which is what has happened with Twitter  (TWTR) - Get Report after its latest quarter.

Cramer says he listened to the conference call and watched the interview with Dick Costolo and honestly does not know what the CEO was saying. He adds that he does not think the board knows either, and Cramer says he is looking for some action that shows the board recognizes that the company has gone off the rails somewhat.

Cramer calls Twitter a terrific franchise because the users create all the content, which leads to the lowest cost. He believes Twitter's monthly average users would increase if the company were well-run, but Cramer also says he cannot even tell which metric Twitter is using to judge itself anymore.

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Cramer says all he knows is that the company is slowing, which is not a good sign for an early-stage company that is highly valued. He says this is why the stock fell so sharply Tuesday.

He thinks investors can buy some Twitter stock ahead of the analyst meeting but only if investors think management can change. Cramer says this current management is "not a good steward" with the exception of CFO Anthony Noto.

The stock was down 10.21% to $43.60 in afternoon trading Tuesday.

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