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As much as we can laugh at ‘Covfefe’ and ‘Potus-Flotus and Lotus’ jokes, that’s what raking in the real bucks for Twitter.
The microblogging platform could be losing a fifth of its value if US President Donald Trump decides to quit, as per a report by Bloomberg.
The data was provided by Monness Crespi Hardt & Co. analyst James Cakmak, who said that the social media company would see as much as USD 2 billion loss in market value, in case @realDonaldTrump decided to quit tweeting.
Losing its most prominent user would hit Twitter’s intangible value and lead to what’s known as multiple compression.
“There is no better free advertising in the world than the President of the United States,” said Cakmak, who has a neutral rating on Twitter shares.
As per a statement by the analyst, Trump is the greatest ‘free advertising in the world’ for the microblogging platform.
While Twitter does not disclose the total number, Cakmak estimates daily users are around 125 million, about 30-percent fewer than Snap Inc, Twitter said in July. Twitter’s active users rose by 12 percent in the second quarter.
Trump has a total of 36 million followers and has tweeted more than 35,000 times since joining the social media service in 2009.
Twitter’s business does not face many risks from the potential diminishing political relevancy, as per a note by Cakmak.
Twitter as per the analysts' words does not capitalise on the opportunity in front of them, and direly requires the right strategy to go ahead.
On the stock market front, Twitter’s shares have fallen since 14 percent ever since Trump won the presidency in that November 8 election.
The company’s market cap is about USD 11.7 billion as per data compiled by Bloomberg.
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