With shares of Snap falling another 9 percent on Tuesday, Jim Cramer shared two ways that it could turn itself into a buy.
The first is that it could reinvent itself as a place to watch short videos that can be advertised against. The second could be if Snap were the beneficiary of a gigantic amount of advertising money that moved online, much like Domino's did for the pizza industry.
Cramer was sick to his stomach when he read stories of millennials buying Snap when it came public last week. He is a believer of owning stocks that you know, but only if the homework is done.
"I just feel terrible about what the younger, new to the market buyers must think right now: that the process is a rip-off, that they were gaffed," the "Mad Money" host said.
If they had done their homework on Snap they would have noticed that Snap has no plans to turn a profit for years, the growth rate is slowing, that it owes $400 million each year to Google for its data center and that it is an unproven advertising platform.
Watch the full segment here: