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Analyst: Trump's tweets may make him worth $2B to Twitter

Published 08/18/2017, 06:26 AM
© Reuters.  Analyst: Trump's tweets may make him worth $2B to Twitter
TWTR
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  • He's no @katyperry or @justinbieber (or even @barackobama) in terms of followers, but President Trump may be worth up to $2B to Twitter (NYSE:TWTR).
  • That's according to Monness Crespi Hardt analyst James Cakmak, who rates the stock Neutral and sees that kind of multiple compression if the company's most prominent user of late decided to quit tweeting.
  • "There is no better free advertising in the world than the president of the United States," he says. Twitter has a market cap of $11.7B.
  • Meanwhile, on the company's actual core metric, Cakmak said he sees daily active users around 125M, about 30% below Snap in that area. Trump's not got much effect on that metric, he says.
  • Source: Bloomberg
  • Now read: Twitter Is Losing Ad Revenue, What More Do You Need To Hear?


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