Both Twitter and Facebook share the same financial problem becoming mainstream as well: monetization. Neither has found a formula to make money consistently, particularly as all the new media is moving from desktops to mobile applications. Most of the enterprise value in both ventures is based upon the possibilities of monetizing their huge followings, but neither has a real model that works -- yet.
The bottom line is to be wary of investing in new media prospects, but even more, of discarding the old media outlets as done. In the stock market, both are proving very well which model is behind the times and which is ahead of it, and it's not what you'd think.
At the time of publication the author had no holdings in the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts