Cowen's Head Of Trading Short On Twitter Because It's 'Overvalued'

Recently, Cowen analyst John Blackledge did a survey based on which he valued Facebook Inc FB-owned Instagram at $33 billion. David Seaburg, Head of Sales & Trading, Cowen & Company, was on CNBC Thursday to discuss Facebook's valuation. He also shared his views on Facebook and Twitter Inc TWTR from a trading perspective.

"He [John Blackledge] valued Instagram at $33 billion. It's a massive driver for them and I think it's really underappreciated," Seaburg said. "I think the stock was 75 bucks when he came out with the call and it's [$]80-82 today, but look the survey cited user growth accelerating dramatically."

Related Link: The Massive Valuation That Moved Facebook

"They are seeing a massive uptick and that's just going to continue to move and also the ad spend. I think that's really important to understand. There's a $200 billion worldwide ad market for TV that's going to shift over to digital. Those trends are going to be very positive for Facebook, which is one of the few companies that's really going to benefit from that significantly."

Twitter Vs. Facebook

When asked what he feels about Twitter from a trading perspective, Seaburg replied, "I think Twitter is a short here. I don't like the stock at all. They don't have the ability to grow their user base like Facebook does; it's a complicated model. I think it's not very user friendly. It's probably getting to a little bit of a premium here."

"They did that partnership with Google, which is I think great, I think its benefit for Google than it is for Twitter, but at the end of the day, I'll be long Facebook and short Twitter because I think Twitter is overvalued here."