Shares of Snap Inc. (SNAP) have slid more than 7% Thursday afternoon as the market reacts to criticism from an individual viewed as having a major influence over the platform's young user base.
While SNAP has been continually bashed by bears on the Street who see the company losing out to competitors—namely Facebook Inc.'s (FB) Instagram—this time, Snap's getting burned by a Kardashian sister. (See also: Correction Was 2018's ‘Appetizer’: Morgan Stanley.)
"Sooo does anyone else not open Snapchat anymore," Kylie Jenner asked her Twitter Inc. (TWTR) followers. "Or is it just me ... ugh this is so sad." But her next tweet read: "Still love you tho snap... my first love."
No One Seems to Like Snap's Redesign
The celebrity's remarks come amid mounting dissatisfaction with Snap's most recent app redesign, in which separate features were blurred together and sponsored content was more clearly promoted. Over 1.2 million people have signed a petition on Change.org named "Remove the New Snapchat Update," reflective of a larger distaste among its Millennial-based users. Banks including Raymond James and Citigroup have downgraded the stock, with the later lowering its price target to $14.
"While the recent redesign of [Snap's] flagship app could produce positive long-term benefits, there is a significant jump in negative app reviews since the redesign was pushed out a few weeks, which could result in a decline in users and user engagement, and could negatively impact financial results," wrote Citigroup's Mark May and Hao Yan in a note to clients Tuesday.
In a statement on Wednesday, Snap affirmed that the redesign is here to stay. The social media company added that in the coming weeks, the platform will introduce tabs in Friends and Discover that will "make it easier to find the Stories that you want, when you want them." (See also: Jim Carrey's Plea: Delete Facebook, Dump the Stock.)