Investors Flock to Twitter, Like Facebook, as Year Draws to a Close
Sure, Facebook has a huge valuation, and Twitter trades at like a billion times earnings, but that hasn’t stopped shares of both companies from surging.
Part of it is the realization that, to the degree that social media actually is a big thing, it really is all about those two companies. And while Facebook and Twitter are tech names, social media has emerged as a key place for all manner of companies, from automakers and airlines to Coke and Pepsi.
In an interview on CNBC, I likened it to the early days of Google’s stock, as investors realized that search advertising was here to stay: