Twitter Is Not Facebook or Google

 | Apr 29, 2014 | 7:29 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

twtr

,

FB

,

goog

,

hon

Stop confusing Twitter (TWTR) with Facebook (FB) or Google (GOOG). It is absurd.

Twitter is a money-loser that didn't beat any of the whispers. Google is a fabulous money-maker, but it wasn't fabulous enough. Facebook beat every line (top, bottom and then some) with a massive guide up, and I could easily make the case that this stock is getting no more than a market multiple on 2016 earnings. That's how fast the company is growing.

But people simply don't like what Facebook -- or Google, for that matter -- is doing with its profit. When Facebook agrees to buy WhatsApp for billions of dollars, people aren't sure what it's getting. When Google buys Nest and it turns out the product doesn't work as advertised, you are reminded that Honeywell's (HON) Dave Cote remarked that he would have sold his whole thermostat division for those prices -- and his is much better than Nest's!

But Twitter? It hardly grew users. It is still losing a ton of money. One could argue that it peaked in its rate of growth. I think it is a fair argument.

I think the stock will go back to below $30, my original target price, after a real long run.

Columnist Conversations

This morning's Markit Manufacturing PMI figures out of Europe offer a mixed bag, but there were two disappoint...
1100 Handle May be Around the Corner
The action in the DOW today was the reverse of what we saw yesterday in the index. The rally off the lows in t...
The visualization of data is provided by Capital Market Laboratories (CML). Z is trading $115.95, down 2.8% w...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.