In the brief history of social media stocks, history is repeating itself. Both Facebook (NASDAQ: FB) and Twitter (NASDAQ: TWTR) stumbled badly after much-hyped IPOs. And both are now gaining meaningful traction, cementing their roles as powerful platforms for the global ad market.
Of course, we now know how wrong many investors were about Facebook. A little more than a year ago, it appeared as if the company's management was ill-suited to the task of converting a massive user base into a profit machine -- what's known in the tech industry as "monetizing the base" -- and shares languished below $25.
Investor cynicism toward Facebook surely proved short-sighted. 2015 sales will likely exceed $16 billion, more than double the company's 2013 sales base, and shares now trade above $75. (more)
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