Twitter, Inc (TWTR)

(Market Call Minute.) Attractive, but are becoming less relevant. 4 out of 5 people who have accounts really don’t tweet that much.

She is a Value investor and this is a Momentum stock that doesn’t make any money. Hopefully they can start generating some advertising revenues. As a Value investor, she would find this a difficult one to buy at any time. It is trading at very high multiples. Expectations are very high and if there is any slight disappointment, the stock could easily come back 20%-30%.

Social media stocks are great and are the new stocks of the new century. The difficulty is that there are always lots of entrants having an exciting new time and they tend to be aggressively priced. This one could be a great success like Google (GOOG-Q) or it might not be. He prefers the certainty by waiting and watching.

There is no historical data because they only just became a public company so you have to look at the peers. It seems social media is not participating in the Santa Clause rally. Stand aside and see what happens in the first two weeks of January.

Has hardly any revenue and earnings. Can’t see a fundamental reason to own it. Expects it to sell off.

The most game changing technology in a long time. Going main stream very quickly. He is seeing it everywhere all the time. Don’t back the truck up yet, but good for a small bet.

There are no signs of earnings coming. This is part of the social media stocks that might be a bubble forming because it is trading at over 100X sales, not earnings. Not even looking at this one.

Twitter (TWTR-N) or Facebook (FB-Q)? He is going to throw a curve on this one. Buy Google (GOOG-Q) instead. These 2 are wonderful companies and is very exciting that they have gone public. This is the new society that we live in and it is wonderful that these companies are going public, but we have to be very careful with their money and make sure we are grounded in terms of our investments. At best, these companies are growing into their valuation and it may take a good long time to do it, if they do it.

He is not a technology focused investor, but generally he believes that technology works. One of the themes that is definitely working is the social media. Hardware is deflationary, and that is probably not working other than 3-D systems. Analytics is working.