Year 2014 was patently the very interesting for social-media investors. At the end of the year industry’s best company Facebook got almost 44% of gain as well as rival Twitter experienced about 19% of loss. From the first sight it might seem that there is nothing to think about: the numbers prove Facebook is better social-media play for investing than Twitter is. But is it really so? Let us get all this straightened out.
It is well-known that Facebook showed amazing growth of its revenue – about 46% per year and this tendency is going on. Even the Facebook company has contributed much money to some acquisitions like Instagram and WhatsApp, that fact didn’t influence on the revenue badly. Those bargains are yet so far from their monetization, but nevertheless Mark Zuckerberg is sure that Instagram will become an important business in a couple of years. Being long-sighted Facebook made another acquisition that cost more than $2 billions – Oculus and this fact is going to make positive effect on the upcoming reports and revenue in general. So, it is clear that the main idea of the company is to extend its boundaries and to add some more sources for the next revenues.
What about Twitter, it seems it has a bit different strategy of monetization. The company is concentrated on network licensing and ad-based revenue. Twitter has already shown outstanding potential while growing the revenue within 2 years from $106 millions till $665 millions that was about 150% per year. Even during the year 2014 the company’s growth showed 127% even when monthly proceeds were falling. Anyway, the company showed real and powerful strategy by monetizing each and every user even in spite of cooling down of market’s interest.
All of the aforesaid gives the strong impression that Facebook is stronger social-media platform at the moment. It has its feet on the ground and has strong position while Twitter’s growth is rather pendulous and bumpier. Maybe it happens because of company’s concentration on two different ways of revenue growth.
Being an early investor with one of those companies’ means you have a perfect possibility to become stinking rich. It’s high time to make money using that bleeding-edge technology. Just remember time means everything – if you are too late, there is no pie. Some experts express the opinion that probably it is the most profitable opportunity for since the foundation of capitalism.