How Donald Trump Saved Twitter Inc?

In the last 5 years, Donald Trump, the current US president, has used his controversial method of tweeting to increase his Twitter followers from 2 million to about 48 million. He has been accused of using his account to spread propaganda and share fake news using 140-character texts at a time.

He has changed the news paradigm because not a day goes by without the TV channels, newspapers, and websites reporting about what @real Donald Trump is posting. For Twitter, this has been a dream come true. The question is if Trump claims to Make America Great Again, could he also manage to make Twitter great again?

Twitter is going through a rough time especially in 2016 with some of its high-profile executives leaving the company and a dwindling user base to about 300 million. The company was also shedding staffs, cut-costing of its activities and pairing back its operations including Vine (video-sharing platform). This has led to slow revenue growth.

It was rumoured that Twitter Inc was being sold Salesforce or Disney but it seems the talks bore no fruit. Hopes are still up with Twitter’s most talked about user rising to the White house. Michael Pachter, from Wedbush Securities, said that Donald Trump is the best thing that has ever happened to Twitter.

Comparing Twitter’s gain in the last four years since it went public, this year’s gain is quite a good win. However, compared to 21% year gain in the Nasdaq or 12.7% in S&P 500, Twitter’s gain is a low-down. Even with its stocks topping out at $20 in July or less than $41 in day one of November 2013, Twitter has managed to maintain in the public eye and stop its fall.

Here are its annual returns dating back to 3 years,

2014; -42.6%

2015; -35.5%

2016; -29.6%

Twitter has had its revenues declining in 2017 and the company is suffering losses of 0.16% per share and 0.09% per share in each quarter of 2017.Despite having a rough patch, Twitter is not a good candidate for low stakes. Until they combine double digit sales with any profits, it’s sky is limited no matter how many times the US president tweets or how fast the user base increases (it topped with 15 million user increase in monthly active users).

By | 2018-02-11T12:08:53+00:00 February 11th, 2018|News|0 Comments

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