U.S. president Donald Trump’s Twitter account is worth approximately 20% of the total market value of the social media company, Monness Crespi Hardt & Co. analyst James Cakmak assumed.
According to James Cakmak’s estimation, Twitter Inc. (NYSE: TWTR) could see as much as $2 billion wiped out if @realDonaldTrump quit tweeting, Bloomberg reports.
President Trump joined Twitter in 2009 and has 36 million followers by the present time. Whereas Cakmak estimates daily users of this social network are around 125 million (Twitter doesn’t disclose this information). So if Mr. president decides to leave it would hit Twitter’s intangible value and lead to multiple compression.
“There is no better free advertising in the world than the president of the United States,” said Cakmak. “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,” he added.
Twitter shares dropped 14% since Donald Trump became president on November 8. According to Bloomberg’s estimation the company’s market cap is about $11.7 billion.
Besides that Donald Trump is a highly influential Twitter user. One single tweet by the U.S. president Donald Trump wiped $5.7bn off the Amazon’s stock market valuation on Wednesday, when he commented in the social media accusing Amazon of “doing great damage to tax paying retailers”.