Snapchat Stock Crashes by USD 1.3 billion after Kylie Jenner Tweets Against it
Investors seem really worried about the application since the reality star has expressed disappointment to over 25.4 million followers.
Celebrity endorsements can have such adverse effects, especially if they are negative and the latest example is of Kylie Jenner's tweet about photo-messaging Snapchat. The social star from Kardashian family recently tweeted that she does not use Snapchat anymore and the stocks of the company literally snapped down. The value of the parent company Snap Inc went down by $1.3 billion!
Kylie Jenner has just shown how influential she was on the application. Snapchat recently made some changes to its interface and was already facing a negative remark from the users. No one was happy about the new updates but Kylie being just 'soo done' with it, literally got the company's market crashing down. Not just the criticism from the users, there was even a petition signed by 1.2 million people on Change.org calling on the company to repeal the update. "We hear you, and appreciate that you took the time to let us know how you feel. We completely understand the new Snapchat has felt uncomfortable for many," the company wrote on Change.org, in response to the petition.
When Wall Street opened on Thursday, Snap Inc was trading at around $18.50 (£13.27) a share, but by 2 pm it had fallen to just over $17 (£12.20) a share.The stock closed down by almost 6%.
Check out Kylie Jenner's tweet about Snapchat
Although she followed it up calling it first love!
Investors seem really worried about the application since the reality star has expressed disappointment to over 25.4 million followers. The application is already facing a tough competition from Facebook's Instagram, another photo sharing application used widely even by celebrities. We wonder at least now the application makers are thinking about the redesign and taking it back anytime soon? Because what is the point of an update, if people are not even opening the application anymore?
(The above story first appeared on LatestLY on Feb 23, 2018 03:52 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).