Social Network Vs. Information Network: The Reason Why Twitter Is 'Dramatically Undervalued' Compared To Facebook

The year 2014 has been dramatically opposite for the stocks of Twitter Inc TWTR & Facebook Inc FB, quite literally. While Twitter’s stock is down more than 42% year to date, Facebook’s stock is up by nearly the same percentage point in the same period.

However, some analysts think that things would improve significantly from here for Twitter. Among them is Nihal Mehta, founding general partner at Eniac Partners, who was recently on CNBC to discuss the same.

Twitter Making Comeback in 2015?

“I do think so, I think Twitter is dramatically undervalued right now. You know Facebook and Twitter they are not, they are apples are Oranges. Facebook is a social network, Twitter is an information network and I think the street is just learning how to value information,” Mehta said.

 He Continued, “There are just millions, hundreds of millions of users on Twitter that receive information without ever logging-in, right, we see it in our tickrs, on television, we see it everywhere, but to tell you the truth, How did we get our news in the past month, we got it from twitter and so, I think it’s still early, I think, we got to figure how to value the company correctly, but they are definitely not down and out by any means.”

When asked which areas or apps he sees gaining momentum in 2015 among consumers, Mehta replied, “Yeah, I think for consumers it might be a time of almost too much saturation right now, we have Facebook and Pinterest and Instagram and SnapChat and Twitter and there’s almost no more time or the bandwidth for the consumer to have another consumer app.”