Did Kylie Jenner really wipe out Snapchat’s stock price with a handful of tweets?

Friday the 13th 🖤

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Kylie Jenner is a big deal on Snapchat. She was actually the “most viewed” person on Snapchat a few years ago, and I think that still holds true, even though I’m not sure how much she Snaps these days, or how much she Snapped during her pregnancy. But she’s still a big deal, and she’s still a big deal with Millennials/Generation Z or whatever. Kylie has a lot of power. So a few weeks ago, she tweeted this:

And then this week, she tweeted this:

And this week, Snapchat’s stock prices tumbled.

Hours later on Thursday, shares of Snap fell as much as 7% in trading—helping the company shed over $1 billion in market value, bringing its total market cap to about $22 billion. It’s not hard to imagine why Jenner’s tweet could affect the price of Snap’s stock. Jenner, at least as recent as 2016, was the most viewed person on Snapchat “by a long shot.” Snap did not respond to requests from Fortune to confirm whether that’s still the case.

“Snap is doing the right strategic moves but needs to manage this process well as celebrity influences like Kylie are a key ingredient in the company’s recipe for success,” said Daniel Ives of GBH Insights in an email. “With 25 million [Twitter] users she carries a lot of weight.”

Interestingly enough, while Jenner tweeted at 4:50 p.m.—after market hours—Snap’s stock remained relatively unchanged. It wasn’t until the markets opened Thursday morning that the stock really began its slide in earnest.

That delayed response may have been as a result of how many eyeballs the tweet garnered—and when.

“The Tweet did not go viral until late last night in the U.S. with an explosion of re-tweets and newly generated comments as both tweet volume and negative sentiment exploded into the market open today,” said Joseph Gits of Social Market Analytics, a firm whose data trawls for information in social media sites, which is in turn used by major investors to inform their investing decisions.

[From People]

Do you think Kylie is single-handedly responsible for a massive corporation losing a billion dollars in 24 hours? Eh. I think Kylie is partially responsible, but I also think Kylie was just giving a high-profile voice to some very common complaints about Snapchat. Personally, I’ve never understood Snapchat’s business model or its appeal – Instagram, I understand. Twitter, I totally understand. But Snapchat seems more like a fad that people will outgrow when the next thing comes along. But sure, let’s say that Kylie Jenner has the power to bring down Snapchat. Why not? Peak 2018.

Kylie using her new Stormi inspired Kylie Cosmetics collection (Posted 2/22/18)

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Photos/video courtesy of Instagram.

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30 Responses to “Did Kylie Jenner really wipe out Snapchat’s stock price with a handful of tweets?”

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  1. heh says:

    lmao. i was waiting for you to cover this.
    while i do think Kylie is partially responsible, i agree that she was just its biggest mouthpiece but to some very common complaints about Snapchat.
    i glad mine hasnt updated. i hear its a travesty. lol

    • SK says:

      I have a friend who is ten years younger than me in her early/mid 20s. Recently she introduced me to a bunch of her friends who are social media influencers who get paid vast amounts of money per post. I recall finding it amusing that they were slagging off snapchat. About a year beforehand they were all addicted but apparently none of them touch it anymore and they think it is “old news” and passe. One of them was complaining that at a paid gig they asked him to snapchat and that is “off brand” for him and would make him look out of touch, etc. Everything they used to do on Snapchat they now do on Instagram Stories. Personally I have never had snapchat so I am vaguely bemused by all of this. I guess it needs to evolve and grow or it will die.

      • me says:

        Uhhh I remember the days of being a student and having a summer job in a factory. Must be nice to make money so easy now a days with social media and being a “popular” person. I do think social media is creating a lot of snobby people who are way too in to themselves.

    • Megan says:

      The growing news story that Snapchat is a purveyor of fake news likely had an influence as well.

  2. The New Classic says:

    Now that Instagram has instastories, I don’t really get what the purpose of Snapchat is? Why do people mess with it anymore? 🤔

  3. Jay says:

    Kylie is right, the update is horrible. It’s harder to keep up with your friends because Snapchat made the Discover section, which is how they make their money with ads and channels and stuff, the main focus. I use it wayyyy less since the update.

    • Bridget says:

      What this tells me is how few people use Snapchat if they weren’t aware of a crappy update until Kylie mentioned it. Whenever Facebook has a dud we hear about it instantly because such a wide range of ages use it and it’s connected to so many accounts. But Snapchat has such a heavy emphasis on younger users, who are notoriously fickle and are constantly looking for what’s new. It’s a hard audience to rely on.

      • Millenial says:

        I don’t think it’s that few people use Snapchat, it’s just really popular among high school students and college students and so it doesn’t get the high profile that Twitter and FB do.

        FWIW, I heard about the new update and how terrible it was from my students.

      • Bridget says:

        Don’t get me wrong, I don’t doubt that there’s a high rate of use amongst exactly that audience. But that took 2 weeks for news of a crappy update to get to the financial folks. It doesn’t have the high profile of Instagram and FB because not as many people use it, and the challenge with anything that sonheavily relies on a young audience is that’s an audience that is constantly looking for the ‘next’ thing.

  4. Bridget says:

    This is what happens when you have a business that relies so heavily on Influencers. It’s so easy for people to just stop opening an App, and there are only so many silly ears you can add.

  5. JA says:

    Sure she just added fuel to the fire that is Snap. When the did their new format ppl went maddddd! Seriously ppl complaining about it and so forth. My husband refuses to invest in Snapchat stock as he says it has no staying power compared to Facebook/Instagram so not worth the financial risk. We both don’t use it and continue to live a happy existence so kinda don’t care what happens to it

  6. Andreia says:

    I used to like snapchat, but now with Instagram stories…. My niece ( age 17) still uses it,

  7. Tara Beth says:

    This flash-in-the-pan individual does not influence the world economy.

  8. Beatrix says:

    Uh-oh, is that Miranda Kerr’s heels I hear running toward the next nearest billionaire?

  9. sunnydeereynolds says:

    People stopped using snapchat because their new update sucked. The story went with the messages and it’s just bad. I rarely use it anymore after the latest update. Plus, IG has stories now which is easier to use. But snap has better filters though. IG tried but it’s just not good as snap.

  10. Chaine says:

    Tried it once, too messy and confusing, assumed it was that way on purpose to keep the olds like me out. Maybe there is nothing wrong with the revamp, it’s just that relatively ancient users like Kylie are now too decrepit to understand how to use its cutting-edge updates.

  11. Tiffany says:

    Someone needs to check on Miranda.

    I follow celebs on IG and they had the same complaint about the new Snapchat format and are not as heavily involved with it as IG. So, I think they and civilians factor in as well.

  12. Kitten says:

    My Millenial BF uses Snapchat.
    It’s weird, I don’t get it, and get off my lawn.

    *shakes cane*

  13. Happy21 says:

    Her tweets sound like something a 13 year old would tweet. And she is raising a child? Scary thought…

  14. trollontheloose says:

    Buiness articles have been reporting for months that Snapchat hasn’t made any profits for the past 2 years and the last 3 months have been disastrous .. meaning that it’s half the power of celebrity and half bad timing, the many complaints from customers who left in drove and some changes made inside the company.

  15. Lorena says:

    I like Snapchat, it’s an easy way to send funny short videos to friends and the filters are fun too. I don’t share on my story to often but I still like it

    But everyone hates the new update! It’s not just Kylie. People have complaining about it on social media for weeks! Mine hasn’t updated yet, thankfully

  16. Ozogirl says:

    I tried Snap once and I didn’t get the appeal. FB, Insta and Twitter are more than enough social media for me.

  17. Mrs. G says:

    The new update really sucks ..

  18. HeyThere! says:

    I really enjoy snap chat with my kids, husband, extended family and friends!! It’s a easy way to send funny videos(filters) and stay connected. Twitter I never got into. I don’t think snap is going anywhere. Every one of her sisters still snap 24/7! I would know since they changed the format and now the ‘top celebs’ are on the homepage. I really like the different news snaps on there. Very informative and raw. World news in real time! That said, I dont really enjoy the update…but change isn’t always fun. LOL