social media stocks: facebook vs. twitter

Social Media Stocks: Facebook vs. Twitter

Facebook By The Numbers

• Monthly active users or MAUs totaled 1.28 billion as of March 31, 2014.

• The stock has a market cap of 167 billion today.

Facebook is a much larger company.

Twitter By The Numbers

• Monthly active users totaled 255 million as of March 31, 2014.

• The stock has a market cap of 20.8 billion today.

Twitter is relatively small compared to Facebook.

Which Company is Growing Faster Today?

This question is best answered by breaking it down into two parts: user growth & revenue growth.

• Facebook’s MAUs increased 15% year-over-year in the first quarter, while Twitter’s MAUs climbed 25% year-over-year in Q1.

• Facebook’s Q1 revenue increased 72% to $2.5 billion, whereas Twitter’s revenue grew 119% to $250 million.

Facebook’s Mobile Business

• Mobile MAUs topped 1 billion in the first quarter, up 34% year-over-year.

• Mobile ads accounted for 59% of Facebook’s total ad revenue in Q1.

609 million users now access Facebook via mobile each day.

Twitter’s Mobile Business

• Mobile MAUs grew 31% year-over-year to 198 million in Q1.

• Mobile ads contributed 80% of Twitter’s total ad revenue in the quarter.

Twitter now reaches more than 1 billion Android and iOS users each month.

Facebook’s Stock Performance YTD

Twitter’s Stock Performance YTD

Finding the best value at today’s price

Both of these companies are strong long-term bets in the social media sector today. However, Twitter carries more risk, as the company is much smaller than Facebook in terms of its user base and therefore advertisers aren’t yet willing to spend

as much on Twitter’s platform. Nevertheless, Twitter’s year-over-year revenue growth of 119% in the first quarter far

outpaced Facebook’s Q1 revenue growth of just 71%. Ultimately, if Twitter is able to grow into a mainstream

Internet platform, there could be meaningful upside potential for the stock.

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