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/

 

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