Single Kylie Jenner tweet costs Snapchat $1.7 billion
WITH one single tweet, Kylie Jenner has cost Snapchat $AU1.7 billion.
The Keeping Up With the Kardashians star, 20, said she no longer opened the app, prompting Snapchat shares to drop by 7.2 per cent in market value.
Jenner was Snapchat's most-viewed account ever, using the platform to promote her Kylie Cosmetics line and sharing candid - and sometimes, controversial - videos and photos.
But it seems Snapchat's poorly-received recent update and redesign, which has been widely criticised, left Jenner unimpressed.
sooo does anyone else not open Snapchat anymore? Or is it just me... ugh this is so sad.— Kylie Jenner (@KylieJenner) February 21, 2018
After her tweet, Snapchat's stocks dropped drastically. Jenner later went into damage control, tweeting: "Still love you tho snap".
still love you tho snap ... my first love— Kylie Jenner (@KylieJenner) February 21, 2018
There has been a "significant jump" in negative reviews about Snapchat, according to Citigroup analyst Mark May, who said the criticism was deterring users and could hurt the company financially, according to Bloomberg.
INSIDE SNAPCHAT'S DECLINE
Snapchat faced a huge backlash after a recent update and redesign, aimed at taking on its competitor Instagram, particularly Insta's hugely successful "story" feed.
It changed the way Snapchat users view their friends' stories, and put a new emphasis on stories posted by celebrities and news organisations.
Users have flooded social media demanding Snapchat return to its old design.
But the company responded to a petition signed by 1.2m users this week saying the new version was here to stay.
Despite the criticism, Snapchat founder and chief executive Evan Spiegel, 27, is still set to pocket $AU811 million in stock grants after the company went public last year.
The deal made Spiegel - who is marred to Australian supermodel Miranda Kerr - one of the US's top-paid executives.
Spiegel, who founded Snapchat in 2011, is the second highest-paid businessman on record, surpassing Microsoft founder Bill Gates and Facebook boss Mark Zuckerberg.
Snapchat has never made a profit.
Mother-of-one Jenner is worth around $50 million and is one of the most influential celebrities on social media.