If you ever need a reminder that one person really can make a difference in the world, take note: Kylie Jenner, a 20-year-old woman whose greatest contribution to humanity was not being in a Pepsi commercial, reportedly caused a massive $1.3 billion drop in Snap Inc.’s market value Thursday after she tweeted about the company’s flagship app, Snapchat:
sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad.
— Kylie Jenner (@KylieJenner) February 21, 2018
Jenner has 24.5 million followers and the tweet has been retweeted near 44,000 times thus far. Eleven minutes after that first tweet, she followed it up with kinder words for the app, but, like most retractions, no one paid attention and the damage to Snap Inc. had already been done.
still love you tho snap … my first love
— Kylie Jenner (@KylieJenner) February 21, 2018
Soon after the tweet, Snap’s value dropped 7 percent, to $17.33 a share.
While this clearly gives the term “influencer” new meaning, Jenner isn’t Snap’s only problem. A recent redesign proved to be hugely unpopular, as Market Insider reports:
The photo-sharing company has seen a boatload of user backlash in the wake of the rollout of its redesigned app. More than 1.2 million people have signed a petition on Change.org called “Remove the new Snapchat Update.”
The wave of negativity surrounding the rollout has caused Wall Street firms to downgrade the stock. In January, Raymond James downgraded the stock and just two days ago Citigroup followed suit by lowering their price target to $14 a share.
“While the recent redesign of [Snap’s] flagship app could produce positive long-term benefits, [there is a] significant jump in negative app reviews since the redesign was pushed out a few weeks, which could result in a decline in users and user engagement, and could negatively impact financial results,” Citigroup analysts Mark May and Hao Yan wrote on Tuesday.
Snapchat users who are calling for the old ways are out of luck. In a statement released Wednesday, the company said the new app is here to stay, with some adjustments on the way.
