On Fox Business, experts Gina Martin Adams, senior equity strategist at Wells Fargo & Co (NYSE:WFC) and Mark Yusko, the CEO of Morgan Creek Capital, discussed the U.S. GDP growth in the second quarter and also took a look at social media companies, Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR). They believe that these are some of the social media stocks that are well-placed to benefit from the improving economic conditions.
The analysts think that things are looking up for e-commerce and social media stocks, especially Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR).
They observed that these two social media giants are finding new ways to monetize on their systems. For example, Yusko noted that today there are more sponsored ads than there used to be and that is a monetization strategy that is common at Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR).
“Facebook Inc (NASDAQ:FB) has been fantastic in converting all those users into dues paying members, so to speak,” said Yusko.
The experts have also discussed the latest GDP figure released today. According to Adams, the latest GDP figure comes as good news for the country and the Fed in particular because it signals that its balancing act is paying off, at least going by the development in the first two quarters of the year.
“I think it is an interesting day for the Fed regarding balance. The economy is actually a little better than we thought last year and even into the first quarter and second quarter,” said Adams on the GDP growth.
With the 4% growth in the second quarter, Adams also noted that Fed is getting confirmation that they are doing right in normalizing the policies. Of course, that means that Fed could think about moving interest rates sooner than later.
Although Yusko remains optimistic about the economy following the latest developments, he said that there is need to be a little wary about the GDP growth.
“I think we have to be a little wary here; first quarter GDP originally was positive, then it got revised down to negative – almost three, and now it is settling in around minus two. So we have a couple more revisions here and actually we don’t see a lot of robust growth, we see sporadic growth,” he warned about economic growth.
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