Ask a Fool: Is Twitter's Valuation Fair?

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In this video from the Motley Fool's "Ask a Fool" series, Fool analyst David Meier takes a question from a Fool reader, who asks, "Do you think Twitter will maintain its stock value when they have made no profit vs. Facebook who is profitable?"

David reminds investors to think of Twitter not in terms of its current profit, but of its future profit. He highlights strong growth in three categories: the service's number of users, the number of advertisers coming to the site, and the amount that each advertiser is spending. While it's unclear whether this is a recipe for growth that will drive Twitter to reach the size of Facebook, David feels it will certainly drive major revenue growth for Twitter down the line.

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The article Ask a Fool: Is Twitter's Valuation Fair? originally appeared on Fool.com.

David Meier owns shares of Facebook and Twitter. The Motley Fool recommends Facebook and Twitter. The Motley Fool owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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