In the world of investing, departure of one marquee investor is bound to result in stocks tanking. But what if the person is not an investor, but a real user of the company's products and services? And what if this person happens to be a high-profile celebrity?
Snapchat, the popular messaging app that serves as a communication tool for youngsters in the age group 16-22, got a dose of bad PR eating into stock value, after Kylie Jenner, a popular American TV celebrity tweeted a not-so-happy moment on her twitter timeline.
Jenner, half-sister of Kim Kardashian (American TV celebrity), tweeted her thoughts on Snapchat's revised UI. Snapchat brought about a new app layout, and most users remained critical of the confusion it created. Nearly a million users even signed a petition on change.org, suggesting Snapchat to bring back the old version.
Although not so serious, Jenner tweeted: "sooo does anyone else not open Snapchat anymore? Or is it just me... ugh this is so sad." Jenner's social media reach on twitter is a whopping 24.5 million followers. And here is the tweet that resulted in 6% dip in stock-valuations for SNAP INC:
sooo does anyone else not open Snapchat anymore? Or is it just me... ugh this is so sad.— Kylie Jenner (@KylieJenner) February 21, 2018
The not-so-serious tweet damaged stock-value worth $1.3 billion. Shares of SNAP Inc, traded on the NYSE, were down by 6.06%, at $17.51 after close of market hours. The stock had rallied to a 52 week high of $29.44 and a low of $11.28, but closed on Thursday, at the same value as that of its IPO. SNAP Inc's IPO. Snap had launched its IPO on 2nd March 2017. Around July 2017, shares had traded below the $17 IPO value for the first time.
Jenner's subsequent tweet was a desperate fire-saving effort but did nothing to calm retail investors from selling their positions.
Here is her second tweet:
still love you tho snap ... my first love— Kylie Jenner (@KylieJenner) February 21, 2018
CEO Evan Spiegel was among those who took a big hit. Spiegel, who's had a moderate base-package, was paid additional income in the form of the company's stocks. His base package for 2017 was pegged at $100,000. For 2017, Spiegel claimed annual package of $637.8 million. A dipping stock-value would mean a lesser take-home for Spiegel, unless the stock-value rises again, something most analysts believe could occur.
Besides millions of followers on twitter, Kylie Jenner , 21 is the youngest among the Kardashian-Jenner family, and a popular celebrity. She operates Kylie Cosmetics- a range of lipsticks and make-up accessories, and is the youngest celebrity on Forbes (rankings of 100 highest paid celebrities). She has made regular appearances on Keeping up With the Kardashians- her family's reality show, besides endorsing for brands such as Puma.