More than $1bn was wiped off Snap Inc’s market value on Thursday, in one of the company’s worst trading days since it went public last year — and the rout was led by a bored tweet from a member of the Kardashian clan.
Kylie Jenner, one of the first wave of celebrities whose fame grew primarily on Snapchat over other social media firms, shared her disappointment with the app on Twitter late on Wednesday: “sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad,” she said. “[S]till love you tho snap… my first love.”
Jenner’s tweet, combined with growing fears on the part of investors that a long-awaited usability-focused redesign may not solve Snapchat’s user growth issues, sparked a plunge in the company’s stock, which fell 6% over the course of Thursday, clearing $1.3bn from its market capitalisation.
The redesign of the app saw Snapchat move away from its previous split between “messages” and “stories,” the social media convention invented by the company but usurped by Facebook’s Instagram. Now, Snapchat focuses attention on the division between friends and publishers, allowing it to more easily promote professional (and paid-for) content, while grouping everything from actual acquaintances in one place.
But it isn’t just Snapchat’s celebrity users and investors who have expressed frustration with the new direction the app has taken. A petition from more than 1.2 million users begged the company to reconsider its redesign, eventually forcing a somewhat dismissive response from Snap Inc itself.
“We completely understand the new Snapchat has felt uncomfortable for many,” the company said. However, it added, “this new foundation is just the beginning and we will always listen closely to find new ways to make the service better for everyone.”
The petition’s core complaint is that the new update “has not…
Source: Mobile Tech Today