A single tweet from Kylie Jenner has cost Snapchat $AU1.7 billion.
The makeup mogul and new mum was previously a champion of the photo-messaging app; but when Jenner tweeted on February 22: “sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad.” Snap Inc.’s shares dropped by a dramatic 7.2 per cent.
The plummeting stock is a huge hit for a company that has seen its engagement fall at an alarming rate, especially since the app’s redesign was announced last November to much consumer outcry.
Later Jenner backtracked by tweeting “Still love you tho snap… my first love”, but the damage was done.
The knock-on effect of Jenner’s tweets aren’t entirely unexpected however, as last year Snapchat’s redesign to “[blur] the lines between professional content creators and your friends” has seen 1.2 million people sign a petition demanding the change be reversed.
The nosedive comes as a cautionary tale for businesses to not get on the wrong side of influencers, as where they are users will follow.
According to reports, the only one to benefit from Jenner’s comments was Facebook, as the social media giant’s stocks rose $USD13 billion on the day of the tweets.
