Why I Rank Twitter As CES 2014's Top Stock

No platform does more to connect our world.

Jan 12, 2014 at 9:30AM

Of all the companies at this year's Consumer Electronics Show, Twitter (NYSE:TWTR) ranks as my top stock pick. Why? Pervasiveness. The microblogger was, variously, my breaking news source, my go-to for connecting with colleagues and friends, and my broadcast platform.

Which, of course, is exactly the way CEO Dick Costolo wants it. "We think of [Twitter] as an indispensable companion to life in the moment," he saidduring the "Brand Matters" panel discussion at CES. You know what? He's right.

salesforce.com's ExactTarget marketing platform tracked the comings and goings on social media during CES and found 219,000 mentions of the hashtag #CES2014 before the show began, with 500 more coming in each minute during Monday's Press Day events. ExactTarget tracked 1.75 #CES2014 tweets per second on Day 2, while Michael Bay's walking off stage at Samsung's Day 1 keynote was still a hot topic on Day 3.

Hashtags are used across all social media to categorize comments or start a discussion thread. But really, they're a byproduct of Twitter, created several years ago to help users make sense of the vast sea of jokes, comments, GIFs, pitches, and observations appearing in their feeds.

Twitter is also cross-cultural in ways that other social networks aren't. In November, Viacom's (NASDAQ:VIAB) Comedy Central ordered a full 40 weeks of the new late-night hit @Midnight, in which host Chris Hardwick has comedians lampooning all manner of ridiculousness from social media. My favorite segment -- "Hashtag Wars," in which the guests construct funny titles to fit a hashtag -- starts on the show and continues on Twitter:

At Midnight

Comedy Central @Midnight reveals how Twitter has changed how we interact with culture. Sources: Twitter and Comedy Central/Viacom.

Skeptical investors will note that Twitter stock already commands a $31 billion market cap despite earning just $534.5 million in revenue over the trailing 12 months. Worse, the company trades for close to 60 times sales, an outrageous multiple when you look at peers Facebook and LinkedIn -- which as of this writing trade for 20 and 18 times sales, respectively.

But is Twitter stock really so overvalued? Can we not see this as a $100 billion company at some point? I can, especially when you consider that Google says that brand advertising tied to TV accounts for some $200 billion in spending. Notably, Twitter is in deals with Nielsen Holdings for measuring audience engagement and Comcast for improving the viewing experience. We wouldn't be seeing these sorts of partnerships if Twitter hadn't proved itself to be the sort of indispensable partner I found it to be during this year's CES.

Do you agree? What has your experience with Twitter been like? Leave a comment below let us know what you think of the service, and whether you would buy, sell, or short the stock at current prices.

Twitter isn't the only social media stock you should own right now
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one amid the many leading the social media revolution. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but also your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Google and Salesforce.com at the time of publication. Check out Tim's Web home and portfolio holdings, or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool recommends Facebook, Google, LinkedIn, salesforce.com, and Twitter and owns shares of Facebook, Google, and LinkedIn. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers