Facebook Inc (FB) vs Twitter Inc (TWTR): Traders Choose Their Pick


Ever since Facebook Inc (NASDAQ:FB) came up with its above expectations second quarter results, the Street has shifted focus to Twitter Inc’s (NYSE:TWTR) second quarter results. Twitter Inc (NYSE:TWTR) is facing huge expectations from analysts and investors alike, given the company has not been able to perform according to Wall Street’s expectation in the last two quarterly results that it declared.

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On today’s edition of CNBC’s ‘Halftime Report,’ FMHR (Fast Money: Halftime Report) traders Mike Murphy, Stephanie Link and Joshua Brown – along with Zack Seward, Senior Editor, Quartz – discussed and choose their pick between Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR).

“I think you can own both Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR), but if you are the company who is going to spend money for advertising, I think, right now, you are going to Facebook Inc (NASDAQ:FB). I think Twitter Inc (NYSE:TWTR) still has to prove themselves. If they do, [there are]lots of upside for the stock, but if you are going to pick one company to advertise with, I think, right now, hands down, you go Facebook Inc (NASDAQ:FB),” Murphy said.

Joshua Brown disagreed with Murphy’s views. According to him, television networks get a much higher return on investments and engagement if they advertise on Twitter Inc (NYSE:TWTR) instead of Facebook Inc (NASDAQ:FB) while a television show is running live. He cited the FIFA World Cup as a great example of this. Even though it was not a non-event for Facebook Inc (NASDAQ:FB), Twitter Inc (NYSE:TWTR) got 652 million tweets that had some kind of hashtag related to the World Cup.

“I am interested in that Twitter Inc (NYSE:TWTR) is down so much and it is so hated that your risk reward is more favorable down here, but I keep coming down to who has the faster growth and who has the cheaper valuation and that’s actually Facebook Inc (NASDAQ:FB), right? I mean, if you look at the quarter, engagement growth was up 60%, you had pricing up 123%, [and]mobile ad growth up 151%. These are astounding numbers […],” Link added.

Disclosure: None

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