Reliability is one of those issues that investors are always looking for — and for those investing in social media stock, Facebook (FB) and Twitter (TWTR) have shown their ups and downs.
In this case, however, the social media powerhouses are locked in a battle over which remains the most reliable — and therefore on solid footing with users. Safety and usefulness will in large part help prove who wins the social media game.
One of the more important issues arising from social media use is trust and privacy. But with Facebook caught in privacy lawsuits and constantly irking users with changes to its settings, Twitter seems to come out ahead in this area.
In fact, Twitter recently updated its platform with a new encryption layers to keep third-parties from being able to infiltrate accounts. So while FB is getting blasted in the privacy arena, TWTR is seen as moving in the seemingly right direction.
When looking at use and usefulness, Twitter is trying to gain an advantage by not only allowing personal connections, but pushing hard to brand itself as a real news operation. And it is, in fact, with users increasingly turning to Twitter for as-they-happen news events of the day.
As InvestorPlace has noted before, TWTR stock investors may get an added bump with users checking in on Twitter several times a day due to its already reliable news branding.
Just how newsy is Twitter? The president of Iran took to Twitter after the nuclear deal with reached with the U.S. (He does not seem to have a FB account, however.)
For now, Facebook users top Twitter — though insiders speculate that Twitter users have more room to grow users internationally as the social network leans on its news angle.
Facebook seems to realize its potential reliability issues, though it still remains in muddy waters with users when it comes to privacy.
Twitter stock is down 10% since its offering.
Facebook stock is up 71% year to date.