Twitter has had a rough time as a public company, debuting at $41 a share, and shortly peaking at $69 a share not long after in January of 2014. For that brief moment in time, the newly-public company’s market value was nearly $40 billion…. and it’s been a bumpy road downhill since then.
The value of Twitter has since collapsed as the company struggles to monetize its user base, and now trades at $18 a share, with a market value of $13.2 billion. As bad as things are, the company would be in even more financial trouble if it weren’t for one man and his successful presidential campaign: Donald J. Trump.
Since declaring his presidency, the man can’t make a single tweet without being covered by the major news networks. That’s naturally translated to an enormous amount of traffic for Twitter.
According to Bloomberg, Without Donald Trump, Twitter Inc. could lose almost a fifth of its value.
That’s the conclusion of Monness Crespi Hardt & Co. analyst James Cakmak, who said that the social media company would see as much as $2 billion in market value wiped out if @realDonaldTrump quit tweeting.
It’s not that the president’s defection would touch off a mass exodus, lowering the number of “monetizable” daily active users, Cakmak said in an interview. 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.
As liberal as Twitter’s management is, they’re among the only people on the Left praying the man doesn’t stop tweeting anytime soon.