The Snapgeddon started when the celebrity and social media influencer took to Twitter to say she no longer even opens the app. She wrote, “so does anyone else not open Snapchat anymore? Or is it just me…ugh this is so sad.”
Apparently plenty of people agreed, adding to what appears to be a market convulsion.
Earlier this week, Mark May, a Citigroup analyst, rated the stock as “neutral.” But noticing the “significant jump” in negative user comments about Snapchat’s redesign, he downgraded the stock to “sell.” An app’s look and feel has a direct bearing on the user experience, so those reviews could conceivably drive user engagement downward.
Chief executive officer Evan Spiegel, at least, is seeing a boost elsewhere, his own compensation, which hit $637 million last year. Most of that pay came via a stock grant relating to Snap’s IPO in March.
The situation appears to be a change of Snap Inc.’s reversal of fortune. The social media company, long criticized for not meeting competitor Instagram’s success, showed signs of improvement during its last earnings call, with $285.7 million in revenue and a growth in user base of 8.9 million daily active users.
But that was before the Jenner effect. The influencer boasts 24.5 million followers, and with that managed to excise as much as $1.3 billion in Snap’s market value through a single tweet. She followed up the initial message with another — “Still love you tho snap” — but that amounts to a #sorrynotsorry, with the damage already being done.
Snap Inc. did not immediately respond to a WWD request for comment.
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