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

February 24 08:02 2018

But with 24.5 million followers on Twitter, 104 million followers on Instagram and a robust presence on Snapchat, few have the platform or influence Jenner has with the target demographic Snapchat relies on.

Not long after, Maybelline New York, a makeup company, asked its followers if it should continue to share content on Snapchat after its Snapchat viewers dropped off, Bloomberg reported.

Jenner, the half-sister of Kim Kardashian (American TV celebrity), tweeted her thoughts on Snapchat’s revised UI.

Kylie posted a tweet on Wednesday, and by Thursday, the shares of the parent company Snapchat declined 6.1%, thereby reducing market value by $ 1.3 billion. A dipping stock-value would mean lesser take-home for Spiegel, unless the stock-value rises again, something most analysts believe could occur.

Snap’s share in pre-market trading on Friday 23 Feb at 4:55am EST were down -0.06% to $17.36.

But it isn’t just Snapchat’s celebrity users and investors who have expressed frustration with the new direction the app has taken.

Instagram boasts a bigger audience with 300 million people viewing stories a day, compared to 187 million daily active users on Snapchat. Snapchat has never been overly helpful to brands’ ability to reach people on its platform, preferring that they buy advertising there if they want to reach users. However, the app did not receive positive response from any after the roll out. Last week, NASCAR said its stories saw an 80 percent increase in views.

Meanwhile, as the app takes criticism, chief executive Evan Spiegel is poised to become one of the highest-paid United States executives for past year, thanks to a US$636.6 million stock grant he got when his company went public. Tech YouTuber MKBHD – who has nearly six million subscribers – said he would likely leave the platform in favour of Instagram.

When Snap first announced the redesign a year ago in November, it noted that they were short of knowing how the community would react as they started interacting with the newly redesigned app.

Shares in Snapchat’s parent company shed $US1.3 billion in market value on the heels of just one tweet from Kylie Jenner

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