Snapchat's big redesign did not turn out to be the same way as the company had hoped for. In short, you can't find the important bits and it's somewhat confusing. As a matter of fact, Snapchat's latest updated user interface brought in some sheer controversy among users and is now seeing $1.3 billion being wiped off Snap's total market value. Previously, Kylie Jenner tweeted that she had stopped opening the app that resulted in the decreased market value. So let's dive in to see some more details on the matter.
Is Kylie Jenne To Blame For Snap's Wiped $1.3 Billion Loss In Market Value?
Reality TV star Kylie Jenner features 24.5 million followers on Twitter and could possibly be the most viewed star on Snapchat. Her tweet on Snapchat could possibly be an indirect cause of the decline of market value for the company. Her view of the new design change was not something that we hadn't heard before. We also saw more than a million users signing a petition that reads to bring the old Snapchat back.
While the petition currently holds 1.2 million signature, a false tweet suggested that the company would revert back to the previous design once the signatories reached 1.5 million in number. Snapchat, on the other hand, did not respond to the situation that would please the average user. Instead, the company wrote that users just need to give it time in order for the new design to sink in.
Snap's share price dropped by more than 6 percent yesterday at the close of trading and reached as much as $1.5 billion down at a point in time. According to the Fortune, investment note from MoffettNathanson acted as a catalyst in the process.
“Snap and Twitter have likely run too much on already stretched multiples,” the note read. “As the market, fresh from all-time highs, recovers from a massive correction, we think the premium placed on owning strong businesses increases, while the risk of owning those with zero valuation support becomes even more pronounced.”
In addition to this, CEO, Evan Spiegel's stock awards, and salary were revealed to be a total of $638 million, which records as the third highest payout ever. There's still more to hear from the stock market and what it might have in store for Snap. Be sure to stay tuned in for more details.
This is all for now, folks. What are your thoughts on Kylie Jenner's tweet having an impact on Snap's market value? Have you accepted the new design change? Share your views with us in the comments.