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.
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.
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