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Twitter vs. Facebook – Which Stock to Buy?

Twitter (TWTR) has tanked, giving up 25% in one day last week.

Facebook (FB) is flying high, surging on strong earnings.

So which one should you buy?

Charles Sizemore, editor of Macro Trend Investor, talks with me about the pros and cons of each stock in this video.

With Facebook, the opportunity lies in the fact that Zuckerberg is “ruthless” as Charles puts it, and that the company is legit with $11 billion in cash and strong earnings at its back.

But both he and I agree FB stock is overvalued right now after a big run in the last several months, and investors should tread lightly.

From a user perspective, Twitter appeals to us both — but it’s undeniable that the hype surrounding TWTR stock and its IPO has gotten ahead of the stock and it is in store for rough seas ahead after missing on its earnings.

If you put a gun to our heads and made us pick one, we both come down on the side of FB stock. But just not at this pricing.

View the video for more details.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP

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