In a program on The Street, Jim Cramer said that Yahoo! Inc. (NASDAQ:YHOO) is struggling with its ads business. There are only two options left for Yahoo! Inc. (NASDAQ:YHOO). Either the company can keep on with buy back stocks, a strategy which will not work in the coming months. The second option for Yahoo! Inc. (NASDAQ:YHOO) is to devise a strategy to convert itself into a one-stop shop. It can start looking at different companies like Yelp, TripAdvisor, GrubHub and most importantly, Twitter Inc (NYSE:TWTR). Twitter Inc (NYSE:TWTR) is having management issues.
The company is being bashed by angry investors on its bad product strategy, shabby management, lack of conspicuous steps and no innovation. Marissa Mayer, CEO of Yahoo! Inc. (NASDAQ:YHOO) is well known for her good management. Yahoo! Inc. (NASDAQ:YHOO) must consider to buy Twitter Inc (NYSE:TWTR) because this will help the company to grow its advertising revenue. The company will also get a plethora of options on its board. The company is long trying to tap into the apps development, social media and Cloud.
Jim Cramer criticized Dick Costolo, the CEO of Twitter Inc (NYSE:TWTR) a few months ago. He compared him to Marissa Mayer and said that Yahoo! Inc. (NASDAQ:YHOO) has sound management but no brand whereas Twitter is an under managed company with a good product brand. Twitter Inc (NYSE:TWTR) and Yahoo can amalgamate their strong points to become a social, search and product giants. Yahoo is facing immense problems after the fizzling off of Alibaba investment. Stock buybacks will not be a feasible option a few months from today. Cramer thinks that Yahoo! Inc. (NASDAQ:YHOO) must use its cash in order to go for acquisition and Twitter Inc (NYSE:TWTR) is the primary option it must consider.
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