GO
Loading...

The 'Backbone' of the Mobile Internet Tsunami

Wednesday, 23 Feb 2011 | 8:05 PM ET
Loud and Clear?
Cramer shares a wireless infrastructure play, with JimTaiclet, American Tower Corp. chairman/CEO.

With more than 34,000 wireless towers, Cramer on Wednesday said American Tower is not only the largest wireless tower play, but the "backbone" of the mobile Internet tsunami.

The Las Vegas-based company missed on earnings by 1 cent when it reported before Wednesday's opening bell, but Cramer isn't worried. It's not an earnings-per-share story, he said. It's a "growing cash flow" story. After all, it's spending a lot of money to expand because demand for smartphones is increasing. In addition, people are using their smartphones to watch movies, stream movies and surf the Web. As the networks move from 3G to 4G, they're going to need more tower capacity and that's where American Tower comes in.

Cramer likes American Tower's business model because it allows them to install multiple antenna on one tower. For every client it takes, it makes roughly $20,000 per tower. Being as it only costs $1,000 in good sold, it has a 95 percent gross margin conversion rate.

Looking forward, Cramer thinks American Tower will continue to benefit from the mobile Internet tsunami. To hear more about what's ahead for this company, he spoke with CEO James Taiclet. Watch the video to see the full interview.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money Web site? madcap@cnbc.com

  Price   Change %Change
AMT
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.