Facebook Stock Price Has Outpaced Twitter’s Stock Price But Will That Be The Case Much Longer?
The social media industry over the past decade or so has been defined by two companies. If you guessed Facebook (FB) and Twitter (TWTR), you’d be right. However, the growth trajectories of the two companies have been quite different.
Over the course of this period, the FB stock price surged ahead on the back of huge advertising revenue. The TWTR stock price found itself grappling with revenue issues for many years. That being said, the recent troubles faced by FB stock with regards to user privacy issues and TWTR stock’s recent turnaround has opened up the debate about the better stock once again.
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Facebook (FB) Stock Price In Focus
Facebook is a social media behemoth. Following the acquisition of Instagram and WhatsApp, it’s likely stronger than ever. The combined monthly active users in its three platforms and Messenger are pegged at 2.7 billion. Therefore it’s not a surprise that the company commands a market cap of $500 billion.
Although the revenues are strong, Facebook has been in the middle of a slew of troubles over the past three years. That includes users’ privacy issues, hate speech and dodgy political campaign ads. These troubles plunged Facebook into disarray. However, it seems that the company’s entry into the cryptocurrency space could breathe new life. This comes with its digital coin Libra.
Twitter (TWTR) Stock Price Set For A Turnaround
On the other hand, Twitter stock price has made a remarkable comeback. This came after TWTR stock appeared to have sunk into irrelevance as the Facebook juggernaut continued its charge. The company revamped its platform and weeded out profiles that had been involved in unscrupulous activities. In addition, Twitter clamped down on hate speech severely.
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Analysts also believe that United States President Donald Trump’s extensive usage of Twitter has proven to be a major boost. Twitter’s revenue grew 18% year on year in Q1 2019. More importantly, there was an 11% growth in monetizable daily active usage.
It’s also important to add that after years of reporting losses, the company is definitely a profitable one now. Twitter posted a $190.8 million profit in Q1 2019. The commitment to improve its platform and grow advertising revenue has proven to be an excellent decision. When it comes to choosing between Twitter and Facebook, which do you feel is stronger?
