When Twitter (TWTR) went public in 2013, expectations were sky-high. Facebook (META 23.28%) had just recently entered the public markets, and investors were starting to get a taste for just how lucrative digital advertising could be for social media stocks. Since January 2014, Facebook has turned a $1,000 investment into $5,000. Twitter is in the exact same place it was seven years ago.
That's pretty disappointing. The fact that Twitter's user base pales in comparison to Facebook's is one reason (of many) that the investing results have diverged so much. But recently, the company began introducing products that could diversify revenue streams and turn users (instead of advertisers) into revenue generators. In this video, recorded on Oct. 2, Motley Fool contributors Brian Feroldi and Brian Stoffel break down the effect these changes could have, and how they fit into the overall bull and bear case for Twitter. At the end, they also reveal how the company scores on their frameworks.