Twitter Inc (TWTR) Should be Different than Facebook Inc (FB): Analyst


Twitter Inc (NYSE:TWTR)’s stock received a small push recently on the back on the news about a recent mobile ad deal. In a recent intervention on CNBC, two experts provided their insights on Twitter and its social network peer, Facebook Inc (NASDAQ:FB), comparing this two companies and stating why they like each of them.

Is twitter a good stock to buy

Bob Peck, SunTrust Robinson Humphrey internet analyst, was asked about his company’s recent upgrade on Twitter Inc (NYSE:TWTR). SunTrust’s current target price for Twitter stands at $45 per share, while for Facebook, the target is $72, the rating for both stocks standing at ‘Buy.’

“What is think so great and the point of our upgrade is that Twitter Inc (NYSE:TWTR) doesn’t need to be Facebook. Everyone keeps asking can they be as big as Facebook and the point is they don’t need to be for the stock to work. Their monetization is a fraction of where Facebook is and actually Mary Meeker even talked about that today and they just closed a little bit of that gap. They advertise half the load of where Facebook Inc (NASDAQ:FB) is. Their advertising pricing is about half of where Facebook is. As they start to close that, you will see the revenues grow and it’s a great opportunity and I think the Omnicom deal announced yesterday sort of proves that out a little bit where it’s going,” Peck said.

A couple of days ago, Omnicom Media Group and Twitter Inc (NYSE:TWTR) signed a deal for mobile advertising valued at $230 million.

On the other hand, Paul Meeks, Sextant Growth Fund portfolio manager, who holds shares of Google Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB) said that Facebook and Google are solid, since these two companies hold around 75% of the global advertising market.

“Over time there would be disruptive technology, of course, and we can’t see exactly what’s going to happen so many years out but over the next couple of years, these companies will continue to dominate a very important space and I think they both not only have to be in tech portfolios but any reasonable growth fund,“ Meeks added.

Meeks  also mentioned that Facebook Inc (NASDAQ:FB) has greater prospects and he doesn’t see Twitter Inc (NYSE:TWTR) growing as much in comparison to Facebook.

Watch the full video below:

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