Reality TV star Kylie Jenner's tweet costs Snapchat US$1.3 billion

Reality TV star Kylie Jenner's tweet erasing US$1 billion (S$1.3 billion) in Snapchat market value rivalled a "sell" rating earlier in the week from Citi as social media users and Wall Street moaned over Snapchat's recent upgrade.
Jenner (above) tweeted that she doesn’t open the Snap app anymore.
Jenner (above) tweeted that she doesn’t open the Snap app anymore.PHOTO: REUTERS

NEW YORK (BLOOMBERG) - Snap's flagship platform has lost some lustre, at least according to one social-media influencer in the Kardashian-Jenner clan.

The Snapchat parent's shares sank as much as 7.2 per cent on Thursday, wiping out US$1.3 billion (S$1.7 billion) in market value, on the heels of a tweet from Kylie Jenner, who said she doesn't open the app anymore.

Whether it's the demands of her newfound motherhood, or the recent app redesign, the testament drew similar replies from her 24.5 million followers.

Wall Street analysts too, have begun to notice, citing recent user engagement trends noticed since the platform's redesign. 

Citigroup analyst Mark May downgraded the stock to sell from neutral earlier this week after seeing a "significant jump" in negative reviews of the app's redesign.

He expects the reviews could cause user engagement to fall, hurting financial results.

Meanwhile, as the app takes criticism, chief executive Evan Spiegel may become one of the highest paid executives in the US.

After the company's IPO last March, Spiegel got a US$636.6 million stock grant that will be payable through 2020.

"Still love you tho snap," Jenner hedged in a later tweet.