When Snapchat rolled out a new update to its app last year, users disliked the changes made to the app's interface. However, reality television star Kylie Jenner seems to be the one user whose dissatisfaction has had a significant effect.
Snapchat introduced the latest major update late last year. This update brought with it a redesign of the app's features, leading some users to complain that they have been having trouble finding their way around the app. There was such dissatisfaction with the update that there was even a Change.org petition asking Snap Inc., the tech company that developed Snapchat, to revert to its old design. Over 1.2 million people have signed the petition, although it seems that Snap Inc. will not be taking back the update any time soon.
The company has stood by the update, with Snap Inc. CEO Evan Spiegel saying at the Goldman Sachs Internet & Technology Conference in early February, as reported by Techcrunch, that people need to take the time to adjust to the new changes.
However, Jenner still seemed unconvinced. In a Feb. 21 tweet, Jenner called the current situation with Snapchat "sad" and implied that she has stopped using the app. On that same day, Snapchat's stock dropped six percent at the close of trading. According to estimates, this drop is equivalent to a market value loss of around $1.3 billion.
Jenner's account is the most viewed one on Snapchat. News outlets were quick to point out the correlation between Jenner's tweet and the timing of Snapchat's unfortunate drop in market value. However, Jenner's tweet may have just been the straw that broke the camel's back, as there were numerous other factors that likely contributed to the six percent drop.
For one thing, Snapchat's stock has been sliding after a less than stellar fiscal year. The main reason may not actually be Jenner's tweet, but Snapchat's biggest competitor: Instagram. One of Instagram's features, Instagram Stories, is very similar to Snapchat Stories. At present, the Instagram Stories feature alone has more users than Snapchat itself. There have also been speculations that the decline in Snapchat users is due to the introduction of Instagram Stories.
The uproar over Snapchat's redesign, as well as the competition with Instagram, were likely the major factors that led up to Thursday's six percent drop. It is possible that when Jenner, arguably Snapchat's biggest user, expressed her dismay, investors saw it as the final blow that sank Snapchat's foundering ship. Even so, this is unlikely to be Snapchat's demise. The history of the Snapchat stock in the market may be volatile, but it has shown that it is capable of bouncing back. Still, this volatility may make investors wary.
Jenner's tweet may have been instrumental in the drop in Snapchat's value, but she soon followed up with a second tweet that may entice users back to the app.
