Twitter has been one of the most popular social media platforms for political disagreement throughout the election.
President Trump typically conveyed many of his political opinions through tweets, but Twitter has a much more liberal political agenda.
Now, Twitter is taking a big hit for their political standings and interferences.
Twitter recently announced their stocks crashed significantly in their last quarter.
Breitbart News reported:
Twitter shares crashed on Thursday following the release of the company’s 4th quarter earnings report.
CNBC reports that the social media company posted a fourth-quarter earnings report showing earnings of 16 cents per share on a revenue of $717 million. This fell short of analysts’ expectations, who had anticipated a higher revenue of approximately $740.1 million, according to an estimate from Thomson Reuters. Twitter had posted 12 cents per share on revenue of $479 million in 2016.
Twitter adjusted its guidance for the first quarter from the range of $75 million to $95 million, falling fall short of Wall Street’s expected estimate of $191.3 million. Twitter’s stock crashed a full 10 percent following the announcement of the earnings report. The company did report a 4% increase in active monthly users with 319 million users per month, up from 317 million users in 2016.
Twitter’s advertising revenue decreased from the year previously, with the company reporting revenue of $638 million. Of that, US revenue was down 5%, totaling $440 million, while international revenue totaled $277 million, an increase of 12% from 2016.
Overall, Twitter had a grand loss of $143.6 million, and they blame the loss on new advertising campaigns that aren’t taking off, rather than the fact that they’re sticking their nose in a business they do not fully understand.
One explanation for their sharp drop in revenues is the significant use of the media platform by President Trump.
As a result of his promoting political policies on the social media platform, many individuals became increasingly more involved in following his tweets.
Those individuals followed a more right-wing demographic and as a result, advertising sources for more liberal corporations were insignificant, and dropped their advertising with the company.
Breitbart News reported:
It is believed by some that President Trump’s tweets may have a large effect on the platform in both positive and negative capacities. Analyst Richard Greenfield stated, “The incessant news flow from the Trump administration playing out on Twitter and the ensuing global reaction pushes Twitter users to be increasingly engaged with the platform.”
However, Richard Kramer of Arete Research told CNBC that the president’s tweeting may deter brands from advertising on Twitter due to fear of the current extreme polarization among Americans over politics. “I think whatever your political views, it’s clear that Trump is extremely divisive, and this isn’t really a positive for advertisers,” said Kramer.
Ultimately, Twitter lost revenue because their leftist viewpoints got in the way of the point of their business: to be a media platform that allows individuals to communicate.
Once Donald Trump started using Twitter as a part of his campaigning strategy, his followers began to use Twitter as a resource and drove the left-sided advertising away.
What are your thoughts?
Do you think Twitter lets their political biases get in the way of their business?
Leave us your thoughts in the comments section below.