Twitter Inc (NYSE:TWTR) is the social media platform everyone seems to be talking about these days. Jim Cramer, who sees a lot of value in the micro-blogging firm, believes Wall Street is short-minded as it is missing the long-term picture. To prove his point, Cramer decided to go down the list of tech companies that are changing the business and the innovation they bring to the table.
Amazon tops Cramer’s list of tech companies
Presently, the number one company everyone respects and fears is Amazon. The online retail giant has created certain disruption in retail.
“I cannot believe how many companies out there literally exist to do nothing but make other companies competitive with Amazon,” Cramer said.
The next most-respected and feared company is Facebook. The social networking site also has a business model that many fear. Facebook has virtually unlimited content that is created by the customer, and advertisers want to use it. Also the company needs to pay for it.
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Alphabet, Google’s parent company, was next on Cramer’s list, but the company is on the list more for what might it be working on and less for what it is doing now. People are keen on the driverless car and are less curious about its robust search revenue, the expert said.
Twitter Inc (TWTR) a “diamond in the rough”
The oddest company on Cramer’s list is Twitter Inc (NYSE:TWTR). The micro-blogging site has been in the news a lot lately, and according to Cramer, people are talking about it for two reasons. First, everyone is checking out what is happening with it, and second, everyone wants to know who will bid for the micro-blogging firm after LinkedIn got a monster bid from Microsoft.
Cramer says people speak of the micro-blogging firm as if it is “some diamond in the rough” that is sitting in the ground, “and the only thing you need to do is get it out, polish it and make it worthwhile is to get rid of the company’s current management. It might as well be the last diamond mine left to grab.”
Talking of the future, Cramer said Amazon is the winner when it comes to winners of tech, and Twitter could be the winner in the future, but it must change ownership before it can be.
At 9:56 a.m. today, Twitter Inc (NYSE:TWTR) shares were down 2.82% at $16.57. Year to date, the stock is down by over 25%, while in the last year, it is down almost 53%.