Snap shares plunge by several percentage points after one critical tweet
The value of Snap, which owns the messaging service Snapchat, plunged massively just after one critical tweet of celebrity influencer and TV star Kylie Jenner.
The celebrity, made famous from her family’s reality show “Keeping Up with the Kardashians,” had tweeted to her 24.5m Twitter followers on Wednesday:
sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad.
— Kylie Jenner (@KylieJenner) February 21, 2018
This tweet was retweeted around 58,000 times.
Kylie later softened her criticism and said: “still love you tho snap … my first love.” However, the damage had already been done as her first tweet sparked a sell-off that saw Venice-based Snap shares plunge by several percentage points, erasing some $1.3bn (£900m) in market value.
According to media reports, it is difficult to confirm whether Jenner’s tweet led to the crash or other reasons were also responsible for the debacle. Snap did not respond to requests from Fortune to confirm whether that’s still the case.
Snap has come under media attention these days following its redesign of Snapchat. The company has received a backlash from its existing audience, with over 1.2m signatories decrying the redesign on change.org.
Snap has, however, defended the move saying users will get used to the changes in time.