Frostsnow

    The Power of Kylie: Snapchat Stock Price Falls by $1.3 Billion After Kylie Jenner’s Tweet

    Updated On 22 Feb, 2018 Published On

    There is no doubt that the Kardashian/Jenner clan is very powerful when it comes to shaping public choices and opinions. But few had realized, until now, that a Jenner could swing the stock market with her tweet. This is exactly what happened when entrepreneur and reality TV star Kylie Jenner posted a brutal tweet about Snapchat, which led to the wiping $1.3 billion off Snap's stock value. 

    Kylie’s tweet is significant not only because it voices the opinion of so many Snapchat users, who have been disappointed by the controversial redesign of the app founded by billionaire Snap CEO Evan Spiegel, but also because it supports the reckoning in some quarters that Snap has been losing its core users to Facebook and Instagram, the former of which has aggressively revamped its Messenger app to suit the taste of Snapchat users.

    Kylie Jenner has been criticizing Snapchat for the redesign

    Kylie Jenner has been criticizing Snapchat for the redesign

    Source: Perez Hilton

    Soon after the tweet, Snap's stock price fell further on Wall Street, although it has been going through a rough patch for quite a while. Even the banking giant Citi downgraded the company’s stock on Tuesday in response to some of the blowback regarding the redesign of the Snap app. After Kylie’s tweet, as of Thursday, Snap's stock price has plummeted by 8 percent.

    Snapchat CEO Evan Spiegel, who is married to Victoria’s Secret model Miranda Kerr, had said earlier that the company was expecting some blowback as a result of the redesigning decision. However, the public outcry to the latest version of the app has proved to be a disaster, both PR and economic, for the company.

    The company has been forced to respond to a Change.org petition decrying the latest version in recent days. The petition has received more than 1.2 million signatures so far.

    After posting her tweet about Snapchat doing nothing to redress the disappointment, Kylie Jenner went one step further, saying that the app, in its previous avatar, had become an object of nostalgia.