Cramer: Redirect your Yahoo venom to Twitter

The venom hitting Yahoo should be redirected to Twitter, Jim Cramer says.

Tuesday was a significant day for Yahoo, as Marissa Mayer has officially tripled the price of the stock since she took over as CEO of the company. She did it through shrewd capital management, mainly by making peace with Alibaba so that she could hold back 122 million shares from being sold during the IPO for Alibaba. Now that Alibaba has approached $100 a share, her foresight was clearly on point when she avoided selling at $68, the "Mad Money" host said.

During her time, Mayer has stayed clear and focused on making smaller acquisitions that are meant to boost followers. She also bought back 293 million shares, which turned out to be a brilliant decision in Cramer's opinion. This helped to boost earnings by 52 percent year-over-year.

Mayer still has a few things to work on that include creating revenue through advertisements, something that Google has figured out. However, her decisions are paying off and the cash is piling up.

Twitter, on the other hand, cannot say the same for itself.

Yahoo! vs. Twitter
Getty Images

Now that the earnings for Twitter bombed Monday, Cramer thinks the price of the sky-high stock just doesn't have room for this type of disappointment. CEO Dick Costolo had nothing to say for himself on the conference call.

"Unlike Mayer who gave a very good defense of what she's done, I found CEO Dick Costolo incoherent on the call," said the "Mad Money" host.

Cramer added Twitter should be adding millions of followers to become a personal news service for the world. What is happening is quite the opposite.

What the heck, Twitter?

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The only thing that Cramer sees is the company is spending money hand over fist just to earn one cent per share. With overseas sales slumping, they also have indicated that revenue growth is slowing as well. That's something that is not supposed to happen this soon in a stock's growing life, according to Cramer.

So now the "Mad Money" host has put his foot down, and called for the free pass to end for Costolo at Twitter. Enough is enough: Hand it over to Mayer who deserves one more than ever these days.

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