How one tweet wiped out $1.3 billion off Snap's market value

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A single tweet from U.S. reality TV star Kylie Jenner about Snapchat on Thursday triggered a massive plunge in the messaging applications's stock price.

Now, it's hard to argue with the power of a Kardashian Klan superstar who undoubtedly has enough commercial clout to make or break a brand. Kylie recently launched a new cosmetic collection which is inspired by her newborn with Travis Scott whom they named Stormi Webster.

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The firm earned "Buy" rating on Tuesday, December 5 by Leerink Swann. ( NASDAQ:CSCO ), 26 have Buy rating, 0 Sell and 12 Hold. It has underperformed by 33.21% the S&P500. (EGHT) by 273.42% based on its latest 2017Q3 regulatory filing with the SEC.


The tweet that went out to Kylie's 24.5 million Twitter followers and saw Snaps shares dropping nearly 8% and closing 6% down on Wall Street. Jenner's views on the platform could be due to the app's redesign in November previous year. Following her tweet, an instant drop of 6.1 percent was noted in the company's share.

Citigroup downgraded the stock to sell from neutral after seeing a "significant jump" in negative reviews of the app's redesign, reports Bloomberg. The application is already facing a tough competition from Facebook's Instagram, another photo sharing application used widely even by celebrities. Despite that intense and occasionally high-profile criticism, Snapchat has committed not to reverse the redesign. Over 1.2 million people have signed a petition on Change.org asking Snapchat to remove the redesign. The value of the parent company Snap Inc went down by $1.3 billion! No one was happy about the new updates but Kylie being just "soo done" with it, literally got the company's market crashing down.

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