Cramer: With Trump Out Of Picture, Twitter Could Struggle To Draw New Users

CNBC's "Mad Money" host Jim Cramer said Monday that President Donald Trump was a great "salesman" for the social media platform Twitter Inc TWTR.

The surprise factor of opening up Twitter and reading a new post from the president drove interaction on Twitter tremendously, Cramer said.

At the time of Trump's Twitter account being banned, he was the sixth-most followed personality on the platform and the second most interacted with account, with nearly half of Twitter's active users subscribed to the feed, he said.

Twitter Boots Trump, Stock Falls: What Investors Need To Know

In the last four years, Twitter has rolled out many new features to handle the traffic and spread of information the president's content was creating, with the removal of the "retweet" option and a requirement for users to opt for the "quote tweet" option in an effort to slow the spread of information that had the potential to be fraudulent, Cramer said.

With the loss of one of their most influential users, many analysts believe that this move will slow the growth rate of the platform and Twitter will have to form a new model of growing user numbers and interaction, the CNBC host said.

Twitter shares were trading down 6.3% at $48.24 ahead of the close Monday.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsPoliticsMoversMediaTrading IdeasGeneralCNBCDonald TrumpJim Cramer
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!