Quantum Trading Strategies CIO and TechStrat Report author Sean Udall is usually neutral to bearish on Facebook Inc FB and tends to favor Twitter Inc TWTR over it quite a bit.
He said he thinks Twitter has a lot more upside, is much more dynamic and will eventually hurt Facebook over time.
Udall recently joined Benzinga's #PreMarket Prep and shared why he swung back on Facebook and thinks that it will make a run somewhere between $95 and $110.
“A lot of the numbers look really good. A lot of the ad potential looks really good. The quarter is setting up strongly. So the bottom line is, things look really great for Facebook,” he said.
Disrupting The Ad Space
One thing both Twitter and Facebook are seeing right now is that advertising rates are increasing, Udall said, not decreasing.
He said that what usually happens when owning property in the Internet space is that it becomes a game of constantly getting more ad impressions, views and clicks since ad prices generally drop over time.
“That’s, for example, Google’s experience, especially when Google Transferred into more of a mobile framework,” he said.
Udall said this is how Facebook and Twitter are starting to show a disruption against Google Inc GOOG GOOGL, by grabbing some of its Internet advertising share.
“They’re starting to take some market share,” he said. “Not huge, but around the edges.”
Check out his full interview here:
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