Social media space is more crowded than ever and Facebook Inc (NASDAQ:FB) and Twitter Inc (NASDAQ:TWTR) has been the top contenders in the space for quite some time. Both these social media giants fight it out for dominance in the social media space, with Facebook Inc (NASDAQ:FB) emerging as the clear cut winner in 2014. In 2014, Facebook shares went up by more than 40%, on the other hand Twitter Inc (NASDAQ:TWTR) shares went down by more than 40%. Founding general partner at Eniac Partners, Nihal Mehta talked on CNBC about the battle between Facebook and Twitter and the social media sector.
Many investors feel that the downtrend of Twitter Inc (NASDAQ:TWTR) is almost over and they might see some uptrend in 2015. Mehta also thinks that Twitter can make a comeback in 2015 and he feels that the stock is tremendously undervalued at present. He feels that it is not fair to compared Facebook Inc (NASDAQ:FB) and Twitter Inc (NASDAQ:TWTR) apps, since one is social and other is information networks.
“I do think so, I think Twitter is dramatically undervalued right now. Facebook and Twitter are apples and oranges. Facebook is a social network, Twitter is an information network and I think that the street is just learning, how to value information,” Mehta said.
Mehta added that hundreds and millions of Twitter users are getting information every day without even logging into Twitter app. He says that a lot of news is getting revealed first through Twitter. His opinion is that Twitter acts as a valuable information resource for many users.
Mehta added that it is too early to talk about Twitter Inc (NASDAQ:TWTR) and he feels that there is a lot to be learned before coming up with valuation for company like Twitter. He said that Twitter is definitely not down and out after a bad 2014.
He thinks that there is already enough social media apps in the market and users are almost getting saturated with these. He feels that the users will not have any more time and bandwidth to use apps other than the ones currently available. But he feels that enterprises might get into the usage of these apps, which might change the enterprises communication network.
Disclosure: None
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.
