Friday, September 22, 2023
HomestocksCramer: Time to give Twitter the benefit of the doubt

Cramer: Time to give Twitter the benefit of the doubt

It's time to give Twitter a break, CNBC's Jim Cramer said Friday.

Citing a recent "buy" rating on Twitter from investment firm Stifel Nicolaus, Cramer seemed to agree with the analyst's research and described Twitter as similar to Amazon, another hard-to-value company that's been criticized for sporting a sky-high price-earnings ratio.

"What's he's saying, apropos to Amazon, is that the opportunity is so great and so revolutionary and disruptive, that you've got to give them the benefit of the doubt," Cramer said Friday on "Squawk on the Street."

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Twitter's stock has been on a wild ride since its November IPO, hitting a high of $74.73 per share in late December before sliding back down to around $60 per share. Twitter stock saw a big jump Friday, rising nearly 5 percent before noon.

What are Twitter shares doing now? (Click here to get the latest quote.)

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Cramer welcomed the research note as valuable in explaining why investors drove up Twitter prices before the company announces its first earnings report next month. The company resonates well with younger Web users, and could rival Facebook in size at some point, Cramer said, citing the note.

"If you read the report at least you'll be encouraged to think, 'OK, I know why Twitter is going up and could continue to go up,' " Cramer said. "Rigorous analysis of a stock that has lacked rigor to date."

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street."



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