Tesla Inc TSLA CEO Elon Musk’s plan to quadruple Twitter Inc’s TWTR revenue to $26.4 billion by 2028 is “achievable,” according to noted Apple Inc AAPL analyst Ming-Chi Kuo.
What Happened: Kuo said Sunday evening that Twitter’s business may be partially similar to the one run by Chinese internet giant Tencent Holdings Limited TCEHY, the company behind the super-app WeChat.
Kuo pointed out in a Twitter thread that Tencent’s revenue from social networking — including subscriptions — advertising, and fintech and business service in 2021 was $17.6 billion, $13.3 billion, and $25.8 billion, respectively.
“So [Musk's] revenue target of $26.4 billion by 2028 for Twitter looks achievable,” said Kuo, adding that while Twitter may not provide Tencent-like multimedia subscriptions, Musk's experience could make it offer subscriptions related to financial services.
The analyst pointed out the ubiquitous nature of WeChat Pay in China and said Twitter Pay could achieve something similar or even better should it support cryptocurrency.
See Also: How To Buy Tesla (TSLA) Stock
Why It Matters: Over the weekend, The New York Times reported that Musk aims to increase Twitter’s revenue, despite advertising taking a back seat.
The entrepreneur has signaled he will attract 931 million users to the platform by 2028, with 104 million users subscribed to a new product labeled X.
Last week, Musk agreed with billionaire Mark Cuban's suggestion to use Dogecoin DOGE/USD to reduce bots and spam on Twitter.
Price Action: On Friday, Tesla shares closed 7.6% lower at $865.65 in the regular session and fell 0.3% in extended trading. On the same day, Twitter shares declined 1.1% in the regular trading to $49.80, according to data from Benzinga Pro.
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