Why Prince Alwaleed Is Gungho About Twitter Inc. (NYSE:TWTR)?

Posted by Nathan Alexander November 19, 2013 0 Comment 1836 views


The Chairman of Kingdom Holding Company and billionaire investor, Prince Alwaleed bin Talal yesterday discussed his investment strategy in an interview with CNBC. Prince Alwaleed remarkably identified Twitter Inc. (NYSE:TWTR) as a rising star in a social media. While answering about its non-profitability he defended that the company is in the development phase and is reinvesting its earnings back into market research and development to drive future growth, something identical to Amazon.com, Inc. (NASDAQ:AMZN) which was plaguing back its earnings for growth and expansion. Prince Alwaleed said that the investors shall be happy that Twitter Inc. (NYSE:TWTR) is reinvesting money for more growth.

The Twitter Focus

Prince Alwaleed mentioned that following the Twitter Inc. (NYSE:TWTR)’s IPO success the focus of Dick Costolo, the CEO and his team shall be on maximizing the monetization. He believes that with growing social media users across the globe and increasing smartphone penetration, Twitter has strong potential for growth and to gain more grounds.

Prince Alwaleed’s Tech Focus

Prince Alwaleed also talked about his investment in Amazon.com, Inc. (NASDAQ:AMZN) and now shifting the focus on the growing Chinese internet company Qihoo 360 Technology Co Ltd (NYSE:QIHU) that offers Internet services and sales of third party anti-virus software. The company’s major chunk of revenues comes from online advertising and Internet value-added services.

Talking about his view on Apple Inc. (NASDAQ:AAPL), Prince Alwaleed mentioned that though company is delivering huge profits every year, the expectations are still very high in the light of fierce competition offered by the next rival, Google Inc. (NASDAQ:GOOG)’s Android powered devices. Talking about Google Inc. (NASDAQ:GOOG) he spoke that the stock is bit costly at valuation of above $1000 per stock, but the company has lot of potential to offer and he respects its leadership.

Talking about the current technology arena Prince Alwaleed said that where there are companies like Microsoft Corporation (NASDAQ:MSFT) and Cisco Systems, Inc. (NASDAQ:CSCO) that still holds some value, there are growth companies on the other hand like Twitter Inc. (NYSE:TWTR) and Facebook Inc. (NASDAQ:FB).



About Nathan Alexander

Nathan Alexander holds bachelor’s degrees in Journalism and European Studies from Boston University. Nathan reports round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. He has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

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