Twitter (TWTR)’s expected deal with search giant Google (GOOG) will give it a tremendous boost, Jim Cramer said on CNBC’s “Squawk on the Street” on Thursday.
“I thought the timing for it was interesting,” Cramer said. “It almost made me feel like maybe the quarter is not going to be that good, but this is gigantic.”
The two companies have reportedly struck a deal for tweets to start appearing on Google search results midway through the year. Google previously had to crawl Twitter’s site for the information, which will now be instantly searchable. “This is kind of like the holy grail,” Cramer said. “This is what I wanted.”
Cramer added that this deal, which is another way for Twitter to expand its reach beyond the original service, helps the social media firm with one of its major problems. “This blows away [the worry] of monthly average users,” he said. “If monthly users start going up, and this does it, then all [is forgiven].”
Twitter, which reports quarterly earnings today after the closing bell, rose 52 cents, or 1.28%, to $41.22 at 1:56 p.m. in New York. The stock is up 15% this year. Google rose nearly 2 points to $524.50.