Speaking to reporters via conference call on Thursday, Twitter executives downplayed any potential uptick in users coming onto its platform as a result of President Trump’s penchant for using Twitter to communicate with the world.
While Twitter acknowledged that Trump has raised its profile, they are as yet unable to quantify any contribution to its user growth. From Bloomberg:
Trump has proven he can move markets with his tweets. Boeing, Lockheed Martin, and Ford have all seen their share prices move sharply when he’s mentioned them in the past.
Some analysts anticipated Trump would major boon for Twitter, with one firm getting bullish on the stock just before its earnings release:
Trump has basically become “a giant marketing vehicle” for Twitter, BTIG analyst Richard Greenfield said in a note Wednesday, ahead of the earnings. He upgraded the stock to “buy,” and said there has been a “meaningful uptick” in downloads of the Twitter app on iOS devices in the U.S. this year.
But that move has proven ill-timed, if not ill-conceived. Twitter’s earnings were a disaster, and it’s becoming clear the troubled social media giant needs more help than the highly controversial president can provide.
Twitter Inc (NYSE:TWTR) was trading at $16.81 per share on Thursday afternoon, down $1.91 (-10.20%). Year-to-date, TWTR has gained 3.13%, versus a 3.15% rise in the benchmark S&P 500 index during the same period.