Social Media

Expect Twitter acquisition to wreak havoc on buyer's stock, Cramer says

Cramer on Twitter suitors ready to bid
VIDEO9:1709:17
Cramer on Twitter suitors ready to bid

An acquisition of Twitter would immediately wreak havoc on the buyer's stock and growth trajectory, according to CNBC's Jim Cramer on Wednesday.

Twitter is expected to take bids this week from a number of suitors, including Salesforce.com. And Salesforce CEO Marc Benioff is working to convince shareholders that a deal make sense, according to The Wall Street Journal.

But Cramer warns that whomever purchases Twitter should expect a major plunge in their stock and an "obliteration" in earnings for some time.

"In the interim, it's like buying an NFL team with no players that are of any note, and losing for two years the moment you buy them," Cramer said on "Squawk on the Street."

"If you buy it, all of these large shareholders would just rebel because it wrecks your growth trajectory. ... It would even wreck Alphabet's trajectory if you spend $20 billion," he said.

Cramer said that a plausible reason for a public company vying for Twitter is hopes that the service could provide customer information that rivals social media giant Facebook.

He has made similar comments in the past specifically about Salesforce. He said Twitter could be beneficial to the company as a way to strategically reach consumers.

"[Twitter] is a company you could mine what individuals want on behalf of corporations," Cramer said, "but instead it's a trash talking site about Kim Kardashian and whether the Thursday night football game is any good."

Twitter's stock was up more than 4 percent midday Wednesday. The shares have risen more than 6 percent year to date.