Salesforce might be making waves in the enterprise space but that does not move the needle when being compared to Facebook Inc (NASDAQ:FB) as the stock to own in the internet space, affirms CNBC’s contributor Timothy Seymour. Last quarter was especially disappointing for Salesforce.com, Inc. (NYSE:CRM) when compared to Facebook, which had a stellar quarter in terms of revenue growth at the back ongoing growth in the advertisement business.
On a head to head basis Seymour affirms that Facebook Inc (NASDAQ:FB) remains the stock to watch, based on future prospects as well as on the ongoing plans to monetize various platforms in the network.
“I kind of like Facebook, which I think is starting to monetize other parts of the platform. They are the largest scale in the internet of things outside Google Inc (NASDAQ:GOOGL). I think this is something that is in their future whereas Salesforce competition is unbelievable in this round so give it to Facebook,” said Mr. Seymour.
Facebook Inc (NASDAQ:FB) user base of 1.4 billion users worldwide settles the case why it is the better of the two, according to Pete Najarian. The analyst also affirms that the valuation of Instagram has not yet been fully priced in, something that should give the stock more juice to surge going forward.
Facebook Inc (NASDAQ:FB)’s international growth prospects also look brighter when compared to Salesforce, which should have an impact in the long run in terms of revenue growth. Brian Kelly believes Salesforce.com, Inc. (NYSE:CRM) is stumbling a bit due to poor showing in the last quarter at the back of stiff competition in the enterprise space.
Facebook has received a lot of criticisms on the amount of money spent on acquisitions that have no track record in terms of turning in profits. Kelly believes things are starting to change as Facebook Inc (NASDAQ:FB) moves to monetize some of the applications.
“A lot of us had questions about how much they were paying for some of these acquisitions; well they are starting to pay right now. They are starting to be able to monetize it. [..] So for me you want to go with that growth, you want to go with advertisers that are switching to that and, to me Salesforce.com, Inc. (NYSE:CRM) seems to be stumbling a bit,” said Mr. Kelly.
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