Snapchat shares dropped after Kylie Jenner stated she was no longer using it. Kim Kardashian’s half-sister stated that she had stopped using the Snapchat messaging app after its recent redesign. As an aside, why do successful apps have to redesign and annoy their existing users? Snapchat just got a taste of what type of reaction such actions might lead to.
Snapchat Shares Fall – The Reason Why
Kylie Jenner tweeted this to her Twitter followers, all 24.5 million of them! “sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad.” Almost immediately, Snapchat shares began to fall slowly at first but then became an avalanche once the news got around.
Snapchat shares dropped almost 8% before it rallied slightly to end ‘only’ 6% down. Snapchat shares are now back to around about the $17 they were priced at back in March 2017, when they were first floated. Still not good.
Snapchat Site Redesign – Users ‘need time to get used to it.’
Snapchat’s problems began when it decided to redesign the site. Many of its users were unhappy with the new design, and many users had expressed their discontent to the company. These negative comments appear to have been ignored and the company is now suffering because of it. After rejecting their customers’ comments, Snapchat’s boss, Evan Spiegel, stated that users ‘need time to get used to it.’
Why? Why change what’s not broke, and why tell customers they will have to get used to it? It’s a classic case of shooting yourself in the foot! Particularly after Spiegel’s salary for last year was announced: $637.8 million. That’s sure to bring back those users who have abandoned the new Snapchat after being told to “get used to it”.
Snapchat Shares: Their Rise and Fall
Snapchat share prices are volatile at best. Only this month they rose by 50% because results were slightly better than forecast now they have taken a fall because of a negative comment by a reality TV star! Not the best history for investors to take confidence in. Snapchat shares are not being universally recommended right now!