Snapchat value drops $1.3 billion after Kylie Jenner's tweet

Calvin Saunders
February 25, 2018

Jenner's post is just one of the disapprovals that Snap is now facing but hers impacted the market the most.

Snapchat rolled out a significant redesign, which included mixing people's private messages and their stories together under one banner, confusing users instantly.

"Sooo does anyone else not open Snapchat anyone? Or is it just me. ugh this is so sad", she wrote on Wednesday.

It looks like the shares in the app's parent company Snap Inc. have dropped by the alarming percentage of 8% only this Thursday.

In fact, more than 1.2 million signed a petition to reverse to redesign since it launched earlier this month. "Snap is reliant on its users actually using the service to generate ad income".

In a response to the recent petition, Snap Inc CEO Evan Spiegel made a statement saying: "We hear you, and appreciate that you took the time to let us understand how you feel".

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"Citigroup analyst mark may, after seeing a" huge step down", which became the outcome of numerous negative user feedback on the redesign, downgraded Snapchat from "neutral". Users have complained about this change, and said it's also more hard to find posts from friends you communicate with less frequently.

The not-so-serious tweet damaged stock-value worth $1.3 billion.

At around 180 million people, Snapchat also now has significantly fewer daily users than Instagram, which now has more than 500 million.

Representatives from Kylie Jenner and Snap did not immediately respond to FOX Business' request for comment.

Maley also believes numerous investors betting against Snap have covered their shorts, which could boost the stock. Nowadays, the main use of Snapchat has been emulated by bigger social media apps, including Instagram and Facebook. She told Trading Nation, "I've always been skeptical of Snap because I think it's very hard for them to monetize. I think that's a risk".

It only takes one tweet from Kylie Jenner to wipe $1.3 billion (£1 billion) off Snap's (NYSE: SNAP) stock market value.

Other reports by MaliBehiribAe

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