Kylie Jenner's Tweet Just Cost Snapchat Over $1 Billion in Value
Snap Inc., faced with a string of criticism over Snapchat's recent redesign, is having a tough day on Wall Street after Kylie Jenner declared the app a shell of its former self on Twitter. The single tweet, an echo of the chorus of users who've complained in recent weeks over the app's new look, saw Snap Inc.'s market valuation tumble by at least $1.3 billion on Thursday.
In her tweet, Jenner noted solemnly that parting with her beloved Snapchat was tough, writing: "ugh this is so sad."
Jenner, a member of the Kardashian family who maintains 24 million followers on Twitter, is a social media influencer whose every passing insight becomes a guidepost for legions of obsessive fans. As a consequence, her tweet ensured swift consequences for Snap Inc., shrinking the company's shares by as much as 7.5% as it garnered over 45,000 retweets.
Snap's troubles aren't all attributable to Jenner's Twitter account. Earlier this week, a Citigroup analyst downgraded the company's stock to "sell" after a proliferation of negative reviews, Bloombergreports.
Snap, unfortunately for the army of Jenner-aficionados scattered across the web, has remained firm, saying it won't revert back to its flagship app's old format. Earlier this month, CEO Evan Spiegel said the app's redesign made it "simpler and easier to use, especially for older users."
Fortunately for Snap Inc., old people probably don't really listen to Kylie Jenner.