Twitter was wise to make tweets its core value proposition, according to Blau, but he expects the company to follow Facebook's lead by expanding the short messages into a more immersive and engaging format. "[Twitter] hasn't figured out how to properly churn the business" and reinvent its platform to meet the market's demand for constant change, Blau says. "The real problem, to be honest, is their track record and their inability to execute based on that track record. They haven't proven themselves in the way that other companies have, given that there's a similar appetite for these services."
Twitter has some good fundamentals, as proven by its ad business, but it has yet to provide a mechanism or clear strategy for growth, according to Blau. Meanwhile, Facebook continues to build upon its proven formula. "Despite all of the pseudo issues they've had, their Achilles heels, people screaming at them because they're not doing the right thing, [Facebook has] done just fine."
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