An investor in Twitter, Gurley said it might not be in the company’s best interest to grow in the public eye, especially with a business model that’s evolving.
“The company’s focused on just building out its model, building out its ad product and scaling up its business. They’re not thinking about, ‘Hey, when can we go public?’” he said, adding that it would likely happen in due time.
“It’s not something on the priority list right now,” he said. “I think it makes all the sense in the world to focus on growth first and monetization second.”
Other Social Media Names Gurley Likes
Gurley said he also liked Instagram, the iPhone-based photo-sharing social media company.
“We call these things social networks, but they’re really connections of people,” he said.
Two other companies in which Gurley has a stake are Edmodo (“It connects teachers, students, parents the way LinkedIn connects professionals.”) and Nextdoor, which allows for people in a particular geographic neighborhood communicate, share recommendations and publicize local events.
“You’re going to see more than Facebook and LinkedIn. There are going to be a few other categories,” he said.
Google’s Less-Than-Free Model
Gurley had only words of praise for Google and its habit of offering free services on the web and via its Android smartphone platform
“Anyone that’s investing anywhere in tech desperately needs to understand how unique this Android business initiative is. I would go out on a limb and say it is the most aggressive business execution in the history of business. They’re basically entering the market with a product that is less than free,” he said.
By that, Gurley meant that smartphone service providers and handset manufacturers were able to share in Google’s search revenues, while most other business models try to profit by charging for services.
“The way to think about it is: If Pepsi cost negative 25 cents, what would that do to Coke?” he said.
Got something to to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to email@example.com.
Trader disclosure: On Feb. 3, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long AAPL call spreads; Najarian is long BAC call spreads; Najarian is long PNC call spreads; Najarian is long GS call spreads; Najarian is long GDX call spreads; Najarian is long NFLX call spreads; Najarian is long RIMM call spreads; Najarian is long GNW call spreads; Najarian is long MOS call spreads; Grasso is long AVAV; Grasso is long ASTM; Grasso is long BA; Grasso is long D; Grasso is long LIT; Grasso is long MHY; Grasso is long MO; Grasso is long PFE; Grasso is long PRST; Grasso is long S; Grasso is long XLU; Karabell is long AAPL; Karabell is long IBM; Karabell is long TGT; Karabell is long MOS calls; Karabell is long GOOG
For Steve Grasso
Stuart Frankel & its partners own CSCO
Stuart Frankel & its partners own CUBA
Stuart Frankel & its partners own GERN
Stuart Frankel & its partners own HPQ
Stuart Frankel & its partners own HSPO
Stuart Frankel & its partners own MU
Stuart Frankel & its partners own NYX
Stuart Frankel & its partners own PRST
Stuart Frankel & its partners own XRX
Stuart Frankel & its partners own ZNGA
For Patty Edwards
Trutina Financial is long AAPL
Trutina Financial is long C
Trutina Financial is long GLD
Trutina Financial is long JNK
Trutina Financial is long INTC
Trutina Financial is long CME
Trutina Financial is long PM
Trutina Financial is long KMP
Trutina Financial is long HSY
For Zach Karabell
River Twice is short XLF
River Twice is short SMH
For Jeff Kilburg
Kilburg is long TLT
For Rebecca Patterson
For Robin Farley
(WYNN): Each research analyst primarily responsible for the content of this research report, in whole or in part, certifies that with respect to each security or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers