- Snap shares plunged after socialite Kylie Jenner tweeted one year ago about how little she used its Snapchat app.
- The tweet underscored broader issues with the app.
- Jenner’s tweet didn’t quite mark the stock’s top, but nevertheless, Snap is still down 50% amid fierce competition and a string of executive departures.
- Watch Snap trade live here.
One year ago Thursday, Kylie Jenner tweeted her displeasure with Snapchat.
“Sooo does anyone else not open Snapchat anymore?” she asked her Twitter followers. “Or is it just me… ugh this is so sad.”
She followed up with another tweet: “Still love you tho snap … my first love.”
The tweet slammed shares of Snapchat’s parent company, Snap, knocking them down by 7% the following trading session and wiping out $US1.3 billion of market value. Since then, they have have lost as much as 72% amid competition from Facebook’s Instagram and a string of executive departures. The stock is still down 50% from where it was before the tweet.
To be sure, Jenner’s tweet didn’t mark the stock’s peak, or alone cause the its dismal performance. Still, it underscored how unhappy users were with the Snapchat redesign. Users fled the platform and investors took notice.
6 reasons Snapchat is losing its popularity
Earlier this month, Snap reported a fourth-quarter loss that came in smaller than expected, and said that its user base held steady. The results garnered positive reactions from Wall Street, and sent the stock soaring by 17%.
Snap shares have gained 62% this year, but were still well below their initial public offering price of $US17.
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