Twitter would see as much as $2 billion in market value wiped out if US President Donald Trump quit tweeting, Monness Crespi Hardt & Co. analyst James Cakmak said.
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,” Bloomberg cited Cakmak as saying.
Trump has 36 million followers and has tweeted more than 35,000 times since joining the social media service in 2009.
The company’s market cap is about $11.7 billion, according to data compiled by Bloomberg.
