President Donald Trump is probably one of the best things that ever happened to Twitter. The famous billionaire is in the news headlines with his tweets he posts almost every day and sends tens of millions of visitors to Twitter, which means more users, more advertisers, and more money for Twitter.
But it seems like, this is not exactly the case. On Thursday, according to the revenue statement of the Twitter Inc, regular users have increased by less than 1%, despite Trump’s productive but controversial tweets and NFL’s agreement to publish live game video streaming. Debra Aho, eMarketer analyst, tells us that most of the tweets that Trump sends are usually seen in the news, so people do not have to go into Twitter.
These numbers are extremely important for online advertisers since they go after mass crowds and the value of Twitter for advertisers is going down as you can tell by the 4. quarter advertising income, which was only 717 million dollars.
“Not even sure Tom Brady could turn this around” says Stifel analyst Scott Devitt
Facebook is the biggest competitor of Twitter thanks to its huge 1.86 billion users, also with 301 million monthly users, Snapchat can be listed as one of the tough rivals. Snapchat’s user demographics make it even more valuable because majority of its users are in the 18-34 age group with high online spending habits.
Snapchat now has a value between $ 20 billion and $ 25 billion, and its value is expected to increase more by $ 3 billion with the near IPO. On the other hand, Twitter’s market value is only 12 billion dollars and its stocks continuous to fall. On Thursday, Twitter stocks declined 12.4%
Why people lose interest in Twitter?
Researchers say new users may not want to join because of the internet trolls, their bad language and behavior on Twitter. Twitter CEO Jack Dorsey had previously said that it was one of the priorities of removing hate speech from Twitter.