Facebook > Twitter?

Does Twitter really worth less than Facebook? According to its IPO status, twitter is generating more than 30 billion per year, which is equivalent to $129 per users, while Facebook is only paying $97 per user. Some say Twitter does not have potential to enhance its future profit, however, its spectacular strategy has proven them wrong. Even though Facebook’s price per share has lower to its original IPO price, it does not indicate Twitter is better.  Facebook is not a vitamin pill that users take once a while, but a pain killer; it is inevitable for users not to use Facebook in modern society. In the long run perspective, Facebook’s lumbering IPO can serve its company better. Instead of giving attractive pricing like Twitter release, Facebook stands in an unique perspective by lower its price per share to $18 from $38. Twitter only sold small portion of company to investors whereas Facebook sold around 421 million shares at price $38. The total revenue is 10 times more than Twitter. Facebook creates the illusion to blind investors to believe its failure, but generate billions of dollars at the mean time.

 

Read full article: http://www.theglobeandmail.com/globe-investor/investment-ideas/strategy-lab/growth-investing/dont-sleep-on-facebooks-growth-potential/article15379777/

 

Market Is In Total Mess!

The shutdown of U.S government has traumatized the entire stock market around the world. Without the capability to default the debt, U.S government is attempting to do a test vote on setting a debt ceiling in order to prevent excessive borrowing for U.S. If the government had announced the default, then there would  be a significant decline in economy and increase in interest rate on the next loan. Majority of the investors cease to invest as they are fear the money will not be invested into charity box instead of profit box. Many industry fear the damage to economy from this shutdown will worse than 2008 recession, which increase the unemployment rate and bankruptcy. Some banks, such as Banca Monte dei Paschi di Siena Sp, plans to deduct 3600 jobs in order to receive 4.1 billion euro assistance from the European Union. Japanese currency, yen, has greatly influenced by the shutdown. This caused their value to fluctuate negatively 96.57 per dollar, and the exchange rate is nine months low. The chain reaction that caused by U.S. has become a devastation.

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