Snapchat stock loses $1.3 billion after Kylie Jenner tweet
Kylie Jenner is not happy about Snapchat’s new redesign.
Snap stock closed down 6% on Thursday after the reality TV star said she is no longer using the app. The plunge wiped about $1.3 billion off the company’s market value.
Jenner has been one of Snapchat’s most influential users.
“Sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad,” Jenner tweeted on Wednesday.
In another tweet she said, “Still love you tho snap … my first love.”
Snapchat has been under fire from users who have criticized the app’s new layout for being too confusing to navigate. Over 1.2 million people have signed a petition on Change.org asking Snapchat to remove the redesign.
Snap did not respond to a request for comment.
Jenner wields extraordinary influence on the platform. Her celebrity adds fuel to the backlash surrounding the app’s major redesign, according to Daniel Ives, chief strategy officer and head of technology research at GBH Insights.
“We believe this is an overreaction as Wall Street is hypersensitive to the app redesign,” he told CNN. “With roughly 25 million followers, [Jenner] carries a loud mouthpiece that speaks to today’s knee jerk reaction in shares.”
Ives believes the update was necessary to expand Snapchat’s user base. He said the previous app design was confusing, and the format shunned older users and advertisers.
“Snap is doing the right strategic moves but needs to manage this process well,” he said.
Earlier this week, Snapchat announced an update aimed at making it easier for users to view content they want to see.
“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.
Snapchat said it will soon roll out tabs in the app’s Friends and Discover sections to make it easier for users to find Stories, which are photos and videos shared by users that disappear after 24 hours.
Jenner isn’t the only celebrity who has been vocal about disliking the redesign.
Earlier this month, model Chrissy Teigen tweeted: “How many people have to hate an update for it to be reconsidered?”