It has been a tough week for Snap. The update of the company for Snapchat has been poorly accepted, and today, the stock price of Snap took another plunge following a tweet from Kylie Jenner saying that she was already done with the social imaging app.
While this may only be an odd case of correlation, it is difficult to deny that Jenner is a prominent person on social media; she has around 24.5 million followers on Twitter. She is also one of the most popular users of Snapchat, and her saying that she is done with the app could have ripple impacts throughout the user base of the app.
The hard data actually bear out the hypothesis. On Wednesday, at around 1:30 PM ET, the stock of Snap was at $19.02, which seems to be an upturn since it sank on the 20th of February following the response of the company to a 1.2 million-signature petition from Change.org requesting the company to bring the old design back.
However, at around 4:50 PM ET, Jenner posted a tweet, asking if anyone else had stopped using the Snapchat app. The stocks of Snap immediately started to decline, and it has continued to plunge by more than 6 percent through today. According to Reuters, that adds up to an approximately $1.5 billion loss in market value for the company.
Jenner later followed up her original Tweet saying that she “still love you tho snap … my first love.” However, it appears that the damage may have already been done.
Ultimately, it is hard to definitively say whether the current stock drop is related to the tweet of Jenner or not. However, either way, one of the most influential and popular users of Snapchat declaring that she is tired of the service is bad news for the company.