Skip to main content

How a single celebrity tweet cost Snapchat $1.3 billion

It caused a panic among Snapchat investors.
  • Author:
  • Updated:
    Original:

What's happened?

$1.3 billion of value was wiped off of social media app Snapchat on Thursday.

The cause? A single tweet from reality TV star and model Kylie Jenner a day earlier.

What did she say?

Here's the tweet in full, which was sent out to her 24.5 million Twitter followers.

Perhaps realizing that many of her followers still use Snapchat – or perhaps hearing the distant rumble of stock market investors scrambling to withdraw their holdings, Jenner posted this conciliatory post a few minutes later.

What's the big deal?

The big deal is that Snapchat is fighting a constant battle for supremacy with its main rival, the Facebook-owned Instagram.

Having a major celebrity (which Jenner is, like it or not), publicly reveal that she's no longer much of a Snapchat fan – having formerly been one of its most influential users – is being read as a sign that the app is on its way down.

Her tweet caused Snapchat shares to drop 8 percent on Wall Street at one point, eventually closing 6 percent down for a total loss of $1.3 billion.

It doesn't help that Jenner now has a huge, 104.5 million following on Instagram, with this picture of her newborn getting more than 17 million likes.

As CNN reports, Snap has been criticized for its new layout, which users say is too confusing to navigate (more than it already was), with 1.2 million people petitioning the company to scrap the change.

Snapchat announced an update aimed at making it easier for users to view content they want to see, CNN adds.

The image and video messaging app has an estimated 173 million daily users, according to Business of Apps. More than half of users are under 34 years old.

Next Up

Wild

Wild flip the script, dominate Blackhawks

Ryan Hartman scored twice to earn the first game of a back-to-back.

Hopkins Basketball

Hopkins suffers rare loss to No. 1 ranked Sidwell Friends

The Royals held their own in a battle of the nation's best.

argue-wertman booking photos

Charges: 2 teens responsible for violent carjacking spree across Twin Cities

They face a combined 31 felony counts, all tied to carjackings and related crimes.

rep nolan west mn house

MN rep. says he was 'assaulted' at activist group's public meeting

The Republican said a man grabbed his arms and yanked him from the room.

Screen Shot 2022-01-20 at 12.56.52 PM

What were the 'bizarre things' seen in Minnesota's sky?

The mysterious streaks were not UFOs and they weren't pieces of an asteroid.

icicles, freezing weather, cold weather

Booming noises in the night could be frost quakes

The loud sounds are most likely to happen during the middle of the night.

coronavirus, coronavirus test, covid-19

Free COVID testing site to open in St. Paul for 3 weeks

The federal testing site comes as demand for testing remains high.

Reyel Simmons photo 1 - complaint - crop

MN TikToker accused of faking federal agent life pleads guilty

He told his 10,000 followers he was a Homeland Security agent — authorities say it was a lie.

Wilf

Report: Vikings request second interview with 2 GM candidates

Ryan Poles of the Chiefs and Kwesi Adofo-Mensah of the Browns.

Amaya Battle

Hopkins takes on No. 1 team in the country on ESPNU Friday

The game will feature a pair of top recruits in the Class of 2022.

st. paul federation of educators - teachers

Educators in Minneapolis, St. Paul could strike amid contract negotiations

Teachers and support staff are demanding smaller class sizes, mental health support and better pay.

Related

Instagram is getting more Snapchat-y again

Want Instagram to be more like Snapchat? Well, good news.

Bloomington Super Bowl ring makers sold for $1.3 billion

Jostens is also known for making class rings and yearbooks.

Snapchat's going to have $130 video camera sunglasses

Snapchat's new sunglasses will record and save "Memories" straight to the app.

Snapchat copycat: Instagram has face filters now too

Instagram just keeps closing the gap with Snapchat.

Snapchat copycat: Instagram has face filters now too

Instagram just keeps closing the gap with Snapchat.