NEW YORK (TheStreet) -- Shares of Twitter (TWTR) - Get Report were soaring 21.42% to $22.62 on heavy volume in mid-morning trading on Friday as the social media platform has received interest from several technology companies and could receive a formal bid soon, CNBC reports, citing sources.
Potential suitors include Alphabet's (GOOGL) Google unit and Salesforce.com (CRM).
TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" that a company like Salesforce should acquire the social media platform.
"Twitter knows where you are. Twitter knows about you. Twitter knows about your habits," Cramer noted.
"If you are a company that is working with other companies to try to figure out a strategy of where to reach (people)...What a great extension to your platform. It would be Twitter," Cramer explained.
The companies that want to buy Twitter are not looking at it the way we do, according to Cramer.
"They're not looking at it as a way to be able to talk about how this game is so boring...that's small time," he added.
Salesforce in particular is trying to figure out where the customer is at all times, Cramer noted.
"They want to know the customer...They're trying to figure out where that customer is and what that customer is thinking," he explained.
But Cramer said that Twitter is not doing that.
"They're presenting a football game and you can comment...That's just banter," he stated.
"How about trying to sit back and think about what a (customer) likes?" Cramer wondered, adding that then the company has a profile and can put an algorithm together.
"You know that I have felt that this should happen," Cramer said referring to a possible takeover of Twitter.
RBC Capital Marketsdowngraded Twitter stock late yesterday. The ratings cut was "ill advised," Cramer said, adding that the timing of the downgrade was "suboptimal."
More than 46.12 million of Twitter's shares have been traded so far today vs. its average volume of 24 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by some concerns, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
Among the areas that are negative, one of the most important has been a generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: TWTR