ThStreet's Jim Cramer questioned Twitter (TWTR) COO Anthony Noto on why the social networking site is free to users in an interview on CNBC's "Squawk Alley" on Thursday morning. Last week, Twitter posted its slowest revenue growth since its IPO in 2013.
"Why is it for free?" Cramer asked. "It is more valuable than almost anything else I get and yet I get it for free. It's like oxygen."
The platform is being monetized through advertising, but is "evaluating" other ways to monetize it, Noto answered.
However, a big issue Twitter is facing is that advertisers are using the platform's audience size from six to 12 months ago. Those figures aren't accurate because its growth is accelerating. Twitter needs to get allocations in the advertisers' future budgets, which they allocate six to 12 months ahead of time.
"Our advertisers love seeing our accelerating growth, and they're adjusting their budgets," Noto explained. "It just takes time."
Cramer also asked Noto about what he thinks about President Donald Trump's frequent usage of the platform.
"We love that he's using the platform," Noto answered. "He's built greater awareness of the platform and the power of the platform. When he tweets, it drives discussion, it sparks debate and that's great for us being able to show what's happening in the world better than anyone else."