Snapchat has had a long week. Its redesign has been unpopular as 1.2 million users vote for a rollback and on Thursday the company had $1.7bn of share value wiped off after reality star, Kylie Jenner of Kardashian fame and uber Snapchat user, tweeted unfavourable views. Shares were down -6% at close on Thursday.
The millennials that the app actively courts and claims to deliver to advertisers, may seem mecurial, but complaints about the app’s new redesign launched earlier in February were coming in thick and fast before this key influencer tweeted her apathy to the new-look app.
sooo does anyone else not open Snapchat anymore? Or is it just me... ugh this is so sad.— Kylie Jenner (@KylieJenner) February 21, 2018
Although Jenner did follow up with an addendum it didn't have the same impact.
still love you tho snap ... my first love— Kylie Jenner (@KylieJenner) February 21, 2018
Complaints from users as outlined on the change.org petition focus on pesky features added to a recent update that make it harder for users to navigate. Nic Rumsey who started the petition claims “many ‘new features’ are useless or defeats the original purposes."
Names like Snap overvalued?
These events follow a downgrade to sell from analysts Citi and MoffettNathanson also issued a reaffirmation of its sell ratings. The telecom analysis firm wrote in a note, “we find these names even more overvalued than before”.
The company has been dogged by losses and declining users although it bucked the trend with an upbeat Q4 results. However, the company warned that the 72% revenue growth seen was not sustainable and that revenue in Q1 "will moderate".
Snap's recently released annual report detailed compensation at the company showing CEO, Evan Spiegel received a bonus of $637m from the stock grant given post its IPO.
Snap's share in pre-market trading on Friday 23 Feb at 4:55am EST were down -0.06% to $17.36.