Is Facebook Inc (FB) Better Positioned than Twitter Inc (TWTR)?


In a recent article, The Guardians’ Heidi Moore has compared Twitter Inc (NYSE:TWTR) with Facebook Inc (NASDAQ:FB) stating that Twitter is far behind Facebook Inc (NASDAQ:FB) not only in terms of financial gains, but also in user experience and market strategy. In her opinion, Twitter is presently standing where Facebook Inc (NASDAQ:FB) was in 2009.

Twitter, is Twitter a good stock to buy, Q2 2014, Cory Johnson, Paul Sweeney, ad efficiency,

Moore quoted Youssef Squali, Managing Director, Global Head of Internet and Media Equity Research who thinks that Facebook in its early days was growing by 100% each year, whereas Twitter is growing only 30% a year. Squali said:

“If they add 10 million or 12 million or 15 million users a quarter, it’s not going to cut it. Facebook Inc (NASDAQ:FB)  has proven you can get a platform that can get over 1 billion users. Facebook in 2009 was growing 100% a year. These guys are clearly not. They’re growing at 30% a year.”

Heidi Moore thinks that Facebook Inc (NASDAQ:FB) has a great edge in the ads business as most of its earnings are coming directly from the advertising industry. Around 75% of advertisers choose Facebook as a medium for promotion. Facebook Inc (NASDAQ:FB) has a great canvas of self-expression and interaction, whereas Twitter Inc (NYSE:TWTR)’s teasing 140 character limit is a hurdle for millions of users who are more interested in self-expression, lively interaction and a friendly experience.

Twitter Inc (NYSE:TWTR)  has beaten all the expectations for its second quarter earnings as its advertising revenue in the second quarter jumped by 125% to $312 million, while its EPS amounted to $0.02. Twitter Inc (NYSE:TWTR) also showed a 29% growth in mobile monthly active users.

Disclosure: None

Suggested Articles:

Top Places To See in Europe Before You Die

Countries That Cheat The Most