Snapchat Stock Drops Following Kylie Jenner’s Tweets
By Stefania Lugli 2/24/2018
Stock values for the parent company of Snapchat fell last week after comments made by a reality TV star. Stock value fell 6 percent last week, an amount equal to $1.3 billion. The sudden drop occurred the evening after reality TV star Kylie Jenner tweeted her disappointment with the newest app update.
Jenner tweeted, “sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad” Wednesday afternoon. She followed that with a second tweet, saying the app is her first love. Her tweets reference a controversial app redesign that has left devoted users feeling frustrated.
A Change.org petition demanding the company to drop the update collected over 1.2 million signatures. A spokesperson for Snapchat dismissed the backlash, stating, “Updates as big as this one can take a little getting used to, but we hope the community will enjoy it once they settle in.”
Since going public in March, Snapchat’s parent company posted impressive quarterly sales and user growth. Their stock increased over 20 percent—surpassing Wall Street expectations. The update rolled out to users in early February.
The 6 percent drop following Jenner’s tweet, an influential Snapchat user, came as a financial shock. Snapchat announced they are listening to users’ complaints about new ways to improve their service.