Twitter Inc (NYSE:TWTR) stock is sinking today despite the massive attention the firm is generating for Vanity Fair. The magazine’s newest cover story reveals Caitlyn Jenner’s new name and gender transition. Jim Cramer, host of CNBC’s Mad Money, pointed out the weaknesses in Twitter that are clear from the big publicity push.
Caitlyn Jenner amassed one million followers on Twitter in less than four hours, setting a new record on the social network. Twitter, which just gave a huge amount of publicity to Vanity Fair, has lost an opportunity says Cramer. The firm will earn almost nothing from the biggest social media event of the week, and one that took place right on its platform.
Jim Cramer has some Twitter ideas
Mr. Cramer offered an idea about how the firm could monetize such a big event. He offered them directly to Mr. Dick Costolo, CEO at Twitter, over the social network this afternoon.
— Jim Cramer (@jimcramer) June 2, 2015
His idea is the introduction of charges for brands that have huge followings or ones that are attracting attention very fast. Mr. Cramer, who offers his opinions on the social network and uses it for both his CNBC shows and pieces from the Street, says that he would end up paying for it.
Another Jenner world record, and at 65? Who'da thought! Humbled & honored to have reached 1M followers in 4 hrs. Thank you for your support.
— Caitlyn Jenner (@Caitlyn_Jenner) June 1, 2015
Cramer has been an outspoken critic of Twitter’s monetization ever since the firm’s March quarter earnings showed very little progress in the area. Investors want the site to be able to generate money when something like the Caitlyn Jenner revelation spikes activity on the network.
Twitter has users and engagement but it is not able to figure out how to turn that into a big cash flow. Cramer reckons that the firm could charge for big events in order to get money moving. He has even said that a buyout by Google Inc (NASDAQ:GOOGL), (NASDAQ:GOOG), may be the best thing for the firm.
Twitter flails as Caitlyn Jenner grabs headlines
Many of the headlines around Caitlyn Jenner’s gender transition have focused on the Twitter impact of the news story, but the firm’s executive team are not able to turn that traction into money.
Jim Cramer thinks that events like this, as well as those for sports events, The Oscars and other spikes in Twitter activity, are where the firm is really failing.
It seems unlikely that the leaders at Twitter are going to get back to Mr. Cramer on the social network.
The investor has regularly tried to get in touch with Mr. Costolo and CFO Anthony Noto over the network, but gets little attention from the two. As we’ve seen, Twitter’s execs aren’t big fans of using the service themselves.
Shares in Twitter have lost more than 24% of their value in the last three months of trading. The company is now worth 12% less than it was as it closed on its IPO day back in 2013.