On Wednesday, the social site's largest shareholder released a note detailing Twitter's shortcoming and its potential for growth, noting that one key component lies in its live streaming app Periscope.
"I think a lot of people have misinterpreted the note," Cramer said on "Squawk on the Street." "I think people talked about it without reading it. ... It's incredibly positive about Twitter; there's nothing negative about Twitter in this."
Nevertheless, Twitter CFO Anthony Noto defended the company's current strategy at its shareholder meeting. "We're taking a very prudent approach that's not unconstrained, but that ensures we're investing at the right level," Noto said Wednesday.