Jim Cramer: this is what’s needed to fix the ‘broken’ Twitter
- Jim Cramer says CEO Parag Agarwal should create two Twitters.
- The Mad Money host explains how a paid version of Twitter could help.
- Twitter shares have more than halved in the trailing twelve months.
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Twitter Inc (NYSE: TWTR) shares have more than halved in the trailing twelve months but CNBC’s Jim Cramer has an elaborate plan that could revive the “broken” Twitter.
CEO Agarwal should create two Twitters
According to the Mad Money host, the key to fixing the microblogging and social networking platform is to split it into two, each targeting a specific set of audience. Cramer said:
The new CEO Parag Agarwal has been given a rare opportunity to hit the reset button; to make a monumental change. He needs to create two Twitters. The current ad-supported Twitter, and a new curated Twitter with actual moderation that would cost a nominal amount to subscribe.
CEO Agarwal took over Twitter late last year after co-founder Jack Dorsey stepped down to fully commit to his digital payments company, Block Inc.
Cramer’s rationale for a paid Twitter
Cramer is convinced a paid version of Twitter that insists real identities will help the social network gain daily average users. He added:
Those who want a civil platform to actually to talk to people should have a separate non-anonymous, subscription-based site. That will create a terrific subscription revenue stream without losing any of the people that like the current version.
Last month, Twitter reported weak results for its fiscal Q4 and gave dovish guidance for the future.