Twitter Inc (NYSE:TWTR) has been battered in the market amidst suggestions that it has underperformed when compared to Facebook Inc. (NASDAQ:FB) but not according to Billionaire investor Mark Cuban who believes the company is a revenue gold mine. CNBC’s Jim Cramer also shares the same sentiments as Mr. Cuban, reiterating that the giant social network is worth a fortune despite the increased skepticism and scrutiny.
Twitter Inc (NYSE:TWTR) has become a personal news service across the globe something that Cramer believes should be more valuable going forward if the network is to figure out an effective monetization strategy.
“I think Twitter Inc (NYSE:TWTR) has got issues, I think Twitter is a revenue gold mine. I think that is a reflection of the fact that people don’t fully understand Twitter anymore. I think it has become the new PR Newswire where it is more of a bullhorn than social network,” said Mr. Cuban.
Cramer maintains that Twitter Inc (NYSE:TWTR) is more valuable than its current valuation of $30 billion on the fact that high profile people are using the platform to air out their views and opinions on various topics. The network has mostly been criticized of low interaction levels in the platform something that Cramer disagrees on as the platform continues to be relied on for important news.
Monetizing is one of the aspects of the business the Mad Money analyst believes the social network should do more in a bid to stay afloat in terms of revenue collection. Growth on active monthly users has come under increased criticism, but Cramer believes that should not be a concern as the company continues to enjoy the addition of more interesting content that should attract more users going forward.
“It is not just the good guys who give you heads up on Twitter Inc (NYSE:TWTR). The really bad guys like ISIS have taken to twitter to announce their agenda too. Twitter has become a one stop shop for raw news in a way that no one else can match; raw which cuts Twitter real worth,” said Mr. Cramer
Facebook Inc (NASDAQ:FB) continues to enjoy an advantage against Twitter Inc (NYSE:TWTR) on the fact that it has found a way to monetize its content through ads. Cramer remains bullish that Twitter Inc (NYSE:TWTR) will figure out its own monetization strategy going forward.
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