The pros and cons of Twitter Inc (NYSE:TWTR) and Facebook Inc (NASDAQ:FB) were discussed by David Seaburg and Chris Dessi in a Bulls vs Bears session on CNBC.
Seaburg, who was admittedly bearish about Twitter Inc (NYSE:TWTR), went first. He was asked whether he thinks investors should buy, sell or hold the stock. According to the Cowen & Company managing director, the stock should not be touched.
“I think I’ve said it before in your program, I’m not a bull here, I’m a bear. I think the stock at $38 isn’t a Buy, ahead of the quarter tomorrow. I look at it and say that in the social media space, it’s all about user growth, it’s all about their ability to monetize and also user engagement. If you look at user growth [for Twitter], it has been decelerating. I think we’re looking [at]the ninth straight quarter of deceleration in user growth,” he said.
Asked why he thinks Twitter Inc (NYSE:TWTR) is seeing a slowdown in user growth, Seaburg said that the company is a “one-trick pony”. He said that if you compare the social media company to its leviathan rival, Facebook Inc (NASDAQ:FB) has more buckets in which they can find user growth.
Chris Dessi was then asked why he is confident about Twitter Inc (NYSE:TWTR). According to the CEO of Silverback Social, the company offers something that Facebook Inc (NASDAQ:FB) cannot at this time. He explained that the key to believing in the smaller social media company is understanding how powerful its platform is.
“Here is the thing: firstly, you can’t be comparing Facebook and Twitter. They are two completely different beasts and it is not an apples to apples comparison. From our perspective at Silverback Social, we are spending money on the Twitter platform because there is nothing today as powerful as the Twitter platform. So when a company like Blue Rock Energy and Syracuse New York want to parachute into a conversation about energy, we spend ad dollars on the Twitter platform [using]sponsored tweets parachuting into the conversation in real time. There’s no other that advertisers today can have that type of conversation in real time. Until there’s a platform like that, that can offer a service in real time, I’m still bullish on Twitter,” Dessi explained.
He was then asked how can his argument be true when Twitter is down while rivals like Facebook Inc (NASDAQ:FB) are doing better. According to Dessi, the problem with Wall Street sometimes is that it is Wall Street.
Watch the video below where Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) are discussed.