Faizel Patel, Radio Islam News – 21-08-2017
Without Donald Trump, Twitter could lose almost a fifth of its value.
That’s the conclusion of Monness Crespi Hardt & Co analyst James Cakmak, who says that the social media company would see as much as $2bn in market value wiped out if @realDonaldTrump quit tweeting.
Cakmak says It’s not that Trumps defection would touch off a mass exodus, lowering the number of “monetisable” daily active users, Instead, 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.
While Twitter doesn’t disclose the total number, Cakmak estimates daily users at 125-million, about 30% fewer than Snap.
Trump has 36 million followers and has tweeted more than 35 000 times since joining the social media service in 2009.
Twitter shares have fallen 14% since Trump won the presidency in the November 8 election.
The company’s market cap is about $11.7bn, according to data compiled by Bloomberg.
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