How Kylie Jenner crashed Snapchat's stock

Carla Harmon
February 23, 2018

The value of Snap, owner of the Snapchat messaging app, fell $1.5bn at Jenner's tweet. "Or is it just me... ugh this is so sad", Jenner tweeted on Wednesday.

A late rally has since helped lessen the blow with the company closing Thursday down just over 6%, a drop of over $850 million in value.

Dropping initially nearly 8%, shares recovered to just a 6% drop on Wall Street wiping out over a billion dollars in its value.

Back in November, Snap Inc. launched an unpopular re-design of the Snapchat app. Users complained about its unwieldiness, but the company's boss Evan Spiegel argued that fans would get used to the new lay-out.

Celebrity users of social media gain millions of followers and Jenner's tweet was seen and shared by hers.

The backlash against Snapchat's major revamp led to a petition entitled, "Remove the new Snapchat update".

"We hear you, and appreciate that you took the time to let us know how you feel", said Snapchat in response to the petition. Users of the app have complained that it is now more hard to use. "We completely understand the new Snapchat has felt uncomfortable for many", Snapchat wrote in response to the petition.

To make up for her lost love for the app, Kylie Jenner later tweeted, "Still love you tho snap".

Jenner's comments came after Snap Inc faced a barrage of criticism over the way a new update has changed Snapchat's user interface.

Instagram has become a constant source of pressure on Snapchat since it began adopting Snapchat features including stories, the vertical-video montages that stay up for 24 hours.

Snapchat has been under fire from users who have criticized the app's new layout for being too confusing to navigate.

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