The billion dollars tweet
Snapchat, the famous social network, has lost 6% of its stock market value, more than one billion dollars after a tweet of Kylie Jenner.
Snapchat is an application which is used to share pictures and videos, the possibility to choose the time limit of the media you sent made the success of the little ghost.
February 22nd 2018, the company lost 6 percent of its market value after the following tweet: “sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad.” It was written by Kylie Jenner, a 20 years old famous American woman since she appeared daily in “Keep if up with the Kardashians” a TV reality show. Today Kim Kardashian’s step sister is a well-known businesswoman especially in the fashion world with 24.5 million followers on Twitter and more than 100 million on Instagram.
She is one of the most influential personality on social networks, that’s why her tweet had such a damaging effect on Snapchat’s value. It proves the impact that influencers can have on a brand, mainly on teenagers who follow the trends of these new celebrities.
This is not the only reason of the current fall of Snapchat, a large part of the users doesn’t like the last update of the little ghost. Even a petition against it was signed by more than one million users. Finally this tweet may be an accelerator of the trend and the decline of the company, which also refused to cancel the last update.
This case shows the fragility of the economic model of this application and the strong competition on these giants like Instagram or Twitter. They have a better economic situation and add also the “concept” of Snapchat in their own social networks.