With Donald Trump being one of the most active users of the social networking site Twitter, often creating quite a stir with his controversial tweets, an analyst estimates that Twitter Inc. might lose about one fifth of its value without the United States President. Estimating the worth of Trump to Twitter, Monness Crespi hardt & Co analyst James Cakmak stated that the social media platform will face a fall of market value to up to $2 billion is @realDonaldTrump quits tweeting.
However, the analyst clarified that the company won’t witness a mass exodus, lowering the number of daily active users, but the absence of Trump would affect Twitter’s intangible value, leading to multiple compression.
With a neutral rating on Twitter share, Cakmak, as reported by Bloomberg, said, “There is no better free advertising in the world than the president of the United States.”
Even as Twitter Inc refrains from disclosing its numbers, Cakmak estimated the total number of Twitter users of 125 million, 30 per cent lower than Snap Inc. Though the social media company, on July this year claimed that its active users had raised by 12 percent in the second quarter as compared to that in 2016.
With a huge 36 million followers Trump has tweeted more than 35,000 times since he joined the platform in 2009. In a note published on Thursday, Clakmak said, “What’s most important is the execution of the right strategy, since at the present state we find Twitter not capitalizing on the opportunity that’s in front of them.”