In a heated discussion on CNBC’s “Squawk on the Street”, Jim Cramer admitted that he had said on his show (Mad Money) that it was very difficult to have a view on Twitter Inc (NYSE:TWTR) prior to the conference call, saying Twitter Inc (NYSE:TWTR) expects people to have a view. Also, he admitted that he had been under the impression that registered users was the most important number to consider when analyzing stocks, but had come to understand that the number of monthly active users (MAUs) – that they did not know about as this metric was revealed recently – are equally important to be considered.
He points out one line in the Twitter Inc (NYSE:TWTR) conference call that led to a stock increase. He quotes Anthony Noto, the CFO of Twitter Inc (NYSE:TWTR), as saying “I came here with one belief and since being here, that belief has only been reinforced. We believe that we can build the largest audience in the world.” He called this the ‘Noto factor,’ because Noto, a former employee of Goldman Sachs, is a very respected player and thus, carries conviction.
Cramer reminded that he had mentioned on his show the need for a strong presentation from Twitter Inc (NYSE:TWTR)’s CFO Noto at the conference call. He predicted that with a strong presentation from Noto, the stocks will go higher. He said that this was not really a strong presentation, but more a presentation that gave one basic, important message: that Twitter having 500 million users, Twitter Inc (NYSE:TWTR) being the fastest growing platform, and Twitter Inc (NYSE:TWTR)’s ability to quickly bring in another 500 million users to make one billion users.
Twitter Inc (NYSE:TWTR)’s monthly average users have gone up by 16 million users.