So I just realized snap market capital is almost double twitter (100x vs 5x). I know twitter is more popular for general audiences, good engineers with lot of open source, publish a lot if cool research papers, owns mopub etc. Why twitter business seemed to be behind? What’s going on?
They’ve never been able to monetize their platform very well
This. The very long track record of failure makes it hard to get higher multiples
What I struggle with is how is LinkedIn doing ? Are they monetizing it well. Would appreciate any insights there.
Yes
If LinkedIn did well, they wouldn’t be sold to MS
CEO risk. Twitter looks no more interesting to him. And slow feature rollouts.
The short answer is more growth opportunity (both users and $/user) Longer answer: Twitter is an established text based platform with many controversial topics. Snap is a newer, video based platform with more diversified content. That commands big brand $$ for Snap, and performance $$ especially given influencers can make an impression on people. Snap already hit a critical mass of users in the US (perhaps other countries?) in certain age groups to get advertisers and agencies' attention. And there are more pathways to grow more
Its by design not a bug. Hunger to Succeed, Desire to Build, Focus on Goals is fundamentally different at other media platforms vs Twitter. One could argue T is overvalued and Snap undervalued. Check Seeking alpha to see the financial commentary
Twitter too once had a sexy tech valuation but couldn't live up to the comparisons with FB.
Struggling with monetizing it properly