Facebook Inc (FB), LinkedIn Corp (LNKD): So…We’re All Buying Twitter?

So we’re all buying Twitter?
No. The news is big and fun and exciting and not at all surprising, but the black box is still pretty dense. Right now, we don’t know enough to make a real decision on Twitter. The business is fundamentally similar to Facebook Inc (NASDAQ:FB) in that it sells advertising for most of its revenue. Actually, in that way, it’s much like almost every content provider, digital or not.

But Twitter is much smaller than Facebook Inc (NASDAQ:FB), right now. Facebook Inc (NASDAQ:FB) has well over 1-billion users, while Twitter is sitting around 200 million. Investors and analysts are excited about the company’s future because of the potential for Twitter to integrate with other media. Tweets while you watch TV, tweets running alongside other online commentary, and — thanks to Twitter’s recent acquisition of MoPub — tweeted ads targeted directly to your phone.

That might all end up being an unassailable model, but it seems like some core piece is missing. Maybe that piece will become clear when we finally see the S-1, but I have a feeling it’s just not in place yet. Until I see it, I’ll be happy to watch the circus from the sidelines, where I don’t have to worry about getting my head bitten off by a lion.

The article Twitter! IPO! Buy It! Now! originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends Facebook and LinkedIn. The Motley Fool owns shares of Facebook and LinkedIn.

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