Kylie Jenner’s tweet costs Snap Inc. over $1 Billion
The last two weeks have been hard for Snap Inc., the parent company of Snapchat. The app has more than 160 million active users worldwide according to its Initial Public Offering prospect. The app is host to billions of ‘snaps’ created every day along with 60% of users using it for messaging each other.
Roughly two weeks back, Snapchat was completely overhauled with an update. The update brought major changes to the design interface, such as moving the friends’ stories’ portion and placing the discover tab there instead. It would be wrong to say the update was welcomed well, let alone liked.
There has been mass dislike over the new update, with a petition on change.org demanding Snap Inc. to reverse the new update. This petition gained over 1.2 million signatures from around the world. The number of signatures compelled Snap Inc.’s CEO, Evan Spiegel to respond. He commented that the user base will get used to the new design eventually.
Well, unfortunately, Evan was wrong. People are not getting used to this, which can be seen by social media sensation Kylie Jenner’s tweet stating she’s stopped using Snapchat.
This one tweet caused an 8% fall in Snap Inc.’s share price, accumulating over $1.3 billion in net loss. Snapchat is already facing stiff competition from Instagram, with an immense number of celebrities using Instagram to interact with their fanbases. With Kylie’s tweet, investors might be worried about the future prospects of the company. The company has already seen loads of ups and downs ever since it went public.
Later on, she tweeted again saying “still love you tho snap … my first love”. Is the second tweet an adequate remedy for the loss done?