Twitter owes about a fifth of its value to Donald Trump’s rising to power in the United States of America. James Cakmak, the Monness Crespi Hardt analyst came to this conclusion after studying the company closely and the changes that had come into being after the transition of power in the world’s superpower. In making his explanation, the analyst got more specific by outlining that if suddenly the president stopped the company would incur a loss of about $2 billion.
As a matter of fact a lot of people would be tempted to think that it would be the Trump’s defection that would touch off a mass exodus. Of course a decline in the number of “monetizable” daily active users might spell out the downfall of any social media giant. However, this wouldn’t be the case. On the contrary, it would be as a result of the Twitter losing its most prominent user. This would culminate into what the analyst termed multiple compressions.
One of the persons with a neutral rating on Twitter shares is Cakmak. According to him the president of the United States is one of the best forms of free advertising globally. There have been numerous efforts to get Twitter to crack up in regards to the total number. However, Twitter remains adamant.
Cakmak has however given his estimate of the various daily users. He has placed it at about 125 million. In relation to Snap Inc, this is almost 30%.In July, the social media provider outlined that the daily active users went up by 12% in the second quarter. This was specifically in comparison to the same period in 2016.
The U.S president has 36 million followers and he joined the media service back in 2009.He has since then tweeted more than 35,000 times.
Cakmak opines, “Twitter’s business doesn’t face much risk from potential diminishing political relevancy. 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.”Bloomberg recently compiled its data eventually placing the market cap at about $11.7 billion.