Tech

Trump's constant tweeting is actually a negative for Twitter, top analyst says

is not seeing a boost in business from the "Trump effect" despite the president's active tweeting, as advertisers steer clear of the platform so their brands don't get targeted, analyst Richard Kramer said on Thursday.

Shares of Twitter were tanking in premarket trading on Thursday after forward guidance missed expectations by a landslide and quarterly revenue was far below estimates. Earnings, however, did beat forecasts.

"I think whatever your political views, it's clear that Trump is extremely divisive, and this isn't really a positive for advertisers," Kramer told CNBC's "," speaking ahead of Twitter's earnings report.

The Arete Research co-founder and senior analyst said his firm still has a negative view on Twitter because although monthly average users are growing, the platform is becoming riskier for advertising, which is a main profit driver for competitors like and Google.

"This is not a platform that advertisers will want to, in advance, associate themselves with," Kramer said, noting that ad campaigns are put together long before they run.

"Can you imagine running a campaign on Twitter, pre-buying it or planning it ... and finding out that the president is slating them on the same platform?" the analyst continued.

On Wednesday, President chided for discontinuing sales of his daughter Ivanka's brand.

"My daughter Ivanka has been treated so unfairly by @Nordstrom. She is a great person -- always pushing me to do the right thing! Terrible!"

Nordstrom following the tweet before recovering later in the day and closing 4 percent higher.

"There are certain types of internet content that advertisers don't regard as brand-safe," Kramer said. "In the case of Twitter, with the abuse, with the vitriol that's on it, there's a lot of brands that just don't want to be associated with that sort of content."


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