Jim Cramer Discusses Twitter's Disappointing Earnings Results

Twitter's (TWTR) disappointing earnings results certainly do not inspire any confidence. Jim Cramer and Action Alerts PLUS Director of Research Jack Mohr explain that while the next several quarters may be volatile, the long-term story is mostly intact. They believe management set expectations way above what was realistic, causing shares to run up over 40% into the quarter (year-to-date) on hope rather than tangible results. Going forward, the company must prove it can compete in the highly competitive online advertising space. They have a slew of innovative products such as Perriscope and exciting partnerships -- think: Google's Double Click, but it may take several quarters before the impact of those offerings kick in. Twitter is a core holding of Jim Cramer's Action Alerts PLUS charitable trust portfolio.