Jim Cramer will admit that he has been a long-time user of Twitter and a believer in its stock. And while it could be an incredible product, these days it seems more like Avon—which has been crushed for years because of awful management.
Cramer thinks the product is fantastic, because he sees so many people in media that are literally begging users to follow them by featuring his handle and asking people to participate in quizzes and polls. It's free promotion that most companies would kill to have.
"I think Twitter might kill the golden goose itself, purely out of arrogance, mismanagement, and a mistaken belief that they are always going to be the only game in town," the "Mad Money" host said. (Tweet This)
That is precisely why Cramer was so happy with the announcement that Dick Costolo is stepping down, because he has never heard more complaints about a CEO in business than he has about him.
However, Cramer was also severely disappointed with Twitter's reaction to Costolo. He would have expected the company to kick out Costolo, and then bring in a CEO with a plan to restore user and ad growth. Did that happen? Nope!
Investors saw the same ridiculous action when Andrea Jung stepped down as CEO of Avon and then stayed on as an executive chairwoman, which defeated any actions taken by the new CEO Sheri McCoy.
There are some investors who have great ideas about saving Twitter, Cramer said, such as the major shareholder Chris Sacca. However, it appears that Twitter is just too arrogant to accept any constructive criticism, even from a large stakeholder like Sacca.
"Mark my words, if Twitter doesn't get its act together, it will be the first big fizzle of the second Internet revolution," Cramer said.