Negative user reviews of Snap’s new app interface has prompted Citi to downgrade the stock to a ‘sell’.
A review chart published by App Annie showed the number of 1-star ratings given to Snap rocketed from 28% to 86% between November 2017 and February 2018.
Meanwhile the number of 5-star ratings fell from around the 20% mark to less than 5%, bringing the overall score down from 2.9 to 1.3.
Fears of fall in users
Citi fears a drop in the number of users and a decline in user engagement, prompting the downgrade to sell, with a $14 price-point.
Snap’s share price dropped from an intra-day high of $19.78 to $18.57 at close of trade in New York yesterday, a 6.15% fall.
The news came just 48 hours after it had been revealed that Snap CEO Evan Spiegel sold $50m-worth of his own shares last week just days after the company reported better-than-expected financial results.
Snap saw a 72% increase in revenue for the fourth quarter of 2017, year on year, to $285.7m, while revenue for the full year was $824.9m a 104% increase.