The Snap Inc.’s flagship platform for media sharing has lost some of its greatness, according to one famous social-media influencer – Kylie Jenner. The shares of Snapchat went down with 7.2% on Thursday, causing $1.3 billion of market value damage over a tweet from Kylie. In this tweet, she said that she doesn’t open the app anymore.
Whether it’s the demands of her newfound motherhood or the recent app redesign, the testament drew similar replies from her 24.5 million followers. Wall Street analysts too, have begun to notice, citing recent user engagement trends noticed since the platform’s redesign.
“sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad”
— Kylie Jenner (@KylieJenner) February 21, 2018
Mark May, an analyst, downgraded the stock to sell from neutral earlier this week, after viewing a “significant jump” in negative reviews after the app’s redesign. He expects that these reviews could cause some users to sign off from the app, which will hurt the company in financial terms.
Meanwhile, as the app takes criticism, Chief Executive Evan Spiegel may become one of the highest paid executives in the U.S. After the company’s IPO last March, Spiegel got a $636.6 million stock grant that will be payable through 2020.
