Three Reasons Wall Street Got It Wrong with Twitter Stock

Chris Dessi
Chris Dessi CEO, Author, Television Commentator , Silverback Social

Posted on August 1st 2014

Three Reasons Wall Street Got It Wrong with Twitter Stock

On Monday I was asked to visit 30 Rock Studios and chat with the closing bell team on CNBC about Twitter's earnings. I'm "bullish" on Twitter stock. The analyst David Seaburg of Cowen and Company is obviously a very smart guy. In his view Twitter is a "one trick pony." I disagreed. It made for great TV, but I thought I'd articulate exactly why I'm bullish on Twitter, and why I think Wall Street Analysts like David miss the mark when looking at social media networks.

Firstly, I own Twitter stock, and I'm not an analyst. Frankly I'm about as far from a finance guy as you can get. I'm a sales and marketing guy that owns a social media agency. I'm a student of social media, but the key differentiator is that my agency is platform agnostic. We only use technology that will further the agenda of our clients. If Twitter didn't work, we wouldn't use it. Period.

Here are the three reasons I believe Wall Street analysts miss the mark on Twitter.

1. Twitter generates conversions for my clients.

CNBC has me on their show because unlike an analyst, I actually USE Twitter. I use it for my personal life, my business life, and on behalf of my clients. The most compelling way I use it is for said clients. When we select where we're going to spend media dollars I'm beholden to nobody. We spend money where it will help to generate the most money for my clients. Twitter converts. Twitter cards work. Twitter has account managers that help my agency understand how to leverage their ad platform. Twitter works. Twitter works, and oh yeah, Twitter works. Phew.

2. Twitter allows for real time engagement between brands and customers.

So when our client Bluerock Energy based in Syracuse NY wants to parachute into a conversation on Twitter about energy, in their local geographic area, in real time - the most efficient way to spend their media dollars is on Twitter. Bluerock can answer questions, engage and help to inform potential customers in real time.

3. Twitter should not be compared to Facebook. Ever.

The other part of the argument that always confuses me is when Wall Street Analysts decide that they want to compage Facebook with Twitter. I think it's because they don't understand how different these social networks are. They don't use them, but they have to put them into a category. This is a HUGE mistake. It makes them look very silly in my opinion. It just makes it even more apparent that they don't use the platforms, and they have no real understanding of how they make money through advertising.

So take look at the video, and let me know what you think in the comments. Am I off my rocker? Am I oversimplifying things, or is Wall Street overcomplicating it?

Chris Dessi

Chris Dessi

CEO, Author, Television Commentator , Silverback Social

An award winning digital thinker, author, television & radio commentator, public speaker and educator, Chris Dessi is the CEO and Founder of Silverback Social. Silverback is the world's leading social media agency, enables top brands and advertisers, to connect with more than a billion customers through Facebook, Twitter, Pinterest, Google, Youtube, and more.

Throughout his career in London and New York, Chris has worked with a wide array of businesses ranging from start-ups to Fortune 500 companies, as well as notable personalities, products and brands.

Chris’ savvy marketing acumen combined with his passion for psychology, sociology and cultural studies, all reside at the fulcrum of his unique manifesto; he believes that social media is much more of a spiritual awakening rather than a technological one. This revolutionary perspective has propelled his personality into the national media landscape. In addition to being a regular social media expert contributor on Fox Business' Shappard Smith Show, CNBC, Fox Evening News, Good Day New York, WPIX, and Fox Business’ Varney & Co., Chris has appeared on Inside Edition, The Steve Adubato Show, One to One, and has participated in radio segments on WOR’s The John Gambling Show in Manhattan, and WBAL’s Marybeth Marsden show in Baltimore.

Chris applied his fresh and innovative outlook on social media to the pages of his first book, “Your World is Exploding: How Social Media is Changing Everything and How You Need to Change With It,” which shot to #1 on Amazon’s Hot New Releases in its first two weeks of publication.

As an educator, Chris recognizes that the manner in which we, as a culture, aggregate and disseminate information has changed, and he is devoted to sharing his effective techniques for mastering engagement in social media to the world. Chris has lectured on social media to sales executives of Fortune 200 companies and he consistently travels the country coaching college students how to leverage social media to benefit their personal brand message and their career.

In 2012, Chris was selected by the Business Council of Westchester’s 40 Under 40 for exemplifying leadership, foresight and a vision for the future of Westchester County, where he currently resides with his wife and two daughters.

Consistent with the passion he holds for his professional career is the devotion he has to his family. Having never been a runner, Chris trained to run the New York City Marathon last year to raise money for the ALS Association after his father was diagnosed with the disease. When the Marathon was cancelled after Sandy hit, Chris took it upon himself to run his own 26.2 mile marathon route in Westchester to honor his father.

See Full Profile >