Stocks That Will Hurt Your Retirement: Twitter (TWTR)
Another tech stock that has changed the world, yet can’t seem to find a way to profit from it is Twitter Inc (NYSE:TWTR).
Twitter has effectively remade the news industry as we know it. It’s become the medium of choice for politicians, celebrities and other media personalities to make major announcements … or to just rant.
Yet, unlike rival Facebook Inc (NASDAQ:FB), it still hasn’t quite figured out its profit model yet. Facebook finds new and creative ways to squeeze more profitability out of its user base while also expanding that user base. Yet Twitter seems to have mostly stalled out. It’s also been overrun by spammers and “bot” accounts, which reduces its attractiveness to would-be advertisers.
Twitter trades for about five times sales, which is more or less in line with many other large tech companies. Yet Twitter is still struggling to figure out its business model, which is ridiculous this late in the game. If you want a social media stock to buy and hold, go with Facebook … and dump Twitter.