Sunday, April 21, 2024

Business: Kylie Jenner’s Tweet About Snapchat May Have Wiped $1.3bn Off Its Stock Value

This is a really a strong influence of true. It’s not strange the power Kylie Jenner’s social media has. The new mum lamented the new Snapchat update on Twitter, telling her 24.5 million followers: ‘sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad.’

And this message seems to have had a major effect on the company. CNN Money reports that Snapchat stock closed down 6% on Thursday following Kylie’s tweet, returning near the $17 price at which the shares were first listed when the company floated on the stock market.

Snap – Snapchat’s parent company – stocks closed at $17.51 – representing a loss in value of $1.3 billion. Ouch.

It may have been that the timing of the plunge and Kylie’s tweet were coincidental, as the stock was downgraded by Citigroup due to the app’s redesign alienating and annoying many of its users (including Kylie).

Citigroup’s Mark May said in a statement: ‘While the recent redesign of its flagship app could produce positive long-term benefits, the significant jump in negative app reviews since the redesign was pushed out a few weeks could result in a decline in users and user engagement, which could negatively impact financial results.’ Snapchat is also under pressure from Instagram, which many people migrating to its Instagram Stories feature. But Kylie’s influence can’t be ignored.

The 20-year-old is one of the app’s most prolific users, and the folks at Snapchat probably breathed a sigh of relief when she followed up her damning tweet with a bit of a retraction. She wrote: ‘still love you tho snap … my first love.’


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