Jim Cramer Explains Why He Thinks Yahoo! Should Buy Twitter

Yahoo! is struggling to grow because display advertising, its principal business, is not doing very well. Jim Cramer says Yahoo can either continue to buy back stock, which has worked, or it can start using the proceeds to begin to roll-up a lot of the companies that are in the Internet space like Yelp or GrubHub or TripAdvisor to build one-stop shopping for local needs for everybody who needs to do a transaction. He says Yahoo! is in a catbird seat, the valuations have come down, their holdings in Alibaba have made them rich and he thinks it's much better to take those proceeds from Alibaba and start buying those companies that can make it so that Yahoo! has great growth again. Jim Cramer says his number one pick is Twitter because Twitter is an under-managed company with a fabulous brand.