More than $1bn wiped off Snapchat’s value after Kylie Jenner diss
Shares in Snapchat plunge after one of the Kardashian-Jenners says she has stopped using it
Kylie Jenner says she doesn’t open Snapchat anymore
Snap’s flagship platform has lost some lustre, at least according to one social-media influencer in the Kardashian-Jenner clan.
The Snapchat parent’s shares sank as much as 7.2 per cent on Thursday, wiping out $1.3 billion in market value, on the heels of a tweet from Kylie Jenner, who said she doesn’t open the app anymore.
Whether it is the demands of her newfound motherhood, or the recent app redesign, the testament drew similar replies from her 24.5 million followers.
Wall Street analysts too, have begun to notice, citing recent user engagement trends since the platform’s redesign. Citigroup analyst Mark May downgraded the stock to sell from neutral earlier this week after seeing a “significant jump” in negative reviews of the app’s redesign. He expects the reviews could cause user engagement to fall, hurting financial results.
Despite criticism of the app, chief executive Evan Spiegel may become one of the highest paid executives in the US. After the company’s flotation last March, Mr Spiegel got a $636.6 million stock grant that will be payable through 2020.
“Still love you tho snap,” Ms Jenner hedged in a later tweet. – Bloomberg