Will Snapchat Recover After Rihanna, Kylie, And Its New UI?
To quote Kylie Jenner, “Sooo does anyone else not open Snapchat anymore?” After what plagued Snapchat in the last month, more people are joining the Snapchat boycott.
Snap, the parent company of social media app Snapchat, has seen its price on the stock market tumbling down in the last weeks. Earlier in February, Snapchat saw a minor tumble in its price when it rolled out its new user interface, which gained criticism from many Snapchat users.
The new Snapchat update is more complicated than trying to turn on your friends shower.— Amber Frank (@ItsAmberFrank) February 7, 2018
Although Snapchat CEO Evan Spiegel defended the redesign, saying there was enough product testing before they rolled out the new UI to the users, his words were not enough to appease the Snapchat fam.
Right after the mass waves of Snapchat users who removed themselves from the app, another catastrophe hit the app when Kylie herself, tweeted about how she was not using Snapchat anymore. Kylie’s sentiments also come from Snapchat’s redesign, which has put out thousands of its followers.
sooo does anyone else not open Snapchat anymore? Or is it just me... ugh this is so sad.— Kylie Jenner (@KylieJenner) February 21, 2018
Hours after Kylie’s tweet, Snapchat sank a huge 6.1 percent, losing $1.3 billion in market value. One tweet and billions of dollars were wiped away from the market. Talk about Kylie’s influence!
In a month, Snapchat started losing both user engagement and its market value. But Snapchat was yet to brace itself for another hit.
This week, Snapchat again sank another 5 percent after singer Rihanna called out the insensitive ads on the app.
The ad in question started to circulate last week and was for a smartphone game titled Would You Rather that included in its advertisement: would rather slap Rihanna or punch Chris Brown?
Is it just me, or is this ad that popped up on my Snapchat extremely tone deaf? Like what were they thinking with this? pic.twitter.com/7kP9RHcgNG— Royce Mann (@TheRoyceMann) March 12, 2018
The ad has sent an enormous wave of criticism against the company for allowing such an ad to go through approval. We can remember that Rihanna-Chris Brown incident in 2009 when Chris held his girlfriend’s head against the car window, punched and choked her until she fell unconscious, and then pushed her unconscious body out of the car and into the pavement. Chris was sent to counselling and community service after that and the whole thing became a history of the past.
We may forgive; but we never forget. So when that ad circulated, it was only reasonable that people turned against Snapchat for allowing ads in such bad taste and skewed-out morals to be approved on their site.
On Monday, Snapchat issued an official apology, saying that “the advert was reviewed and approved in error, as it violates our advertising guidelines.”
But after Snapchat released its apology, Rihanna released a statement of her own. Her statement was released via her Instagram story and read: ““Now SNAPCHAT I know you already know you ain’t my fav app out there! But I’m just trying to figure out what the point was with this mess! I’d love to call it ignorance, but I know you ain’t that dumb! You spent money to animate something that would intentionally bring shame to DV victims and made a joke of it!!!! This isn’t about my personal feelings, cause I don’t have much of them...but all the women, children, and men that have been victims of DV in the past and especially the ones who haven’t made it out yet....you let us down! Shame on you. Throw the whole app-oligy away.”
It will be hard for Snapchat to get away from this slip-up this time. Especially after it dropped another $600 million after that 5 percent drop, thanks to Rihanna’s outburst.
As of writing, Snap is trading at $17.01 a piece, which isn’t the company’s lowest but still nearly $10 lower than when Snap floated on the stock market last year.
Will Snap recover or is it time to sell out all your Snap stocks? Mark Mahaney of RBC Capital Markets told CNBC last week that there are still reasons to be bullish about the company’s price. In fact, he still has a “buy” rating on the stock, which could be a good move since Snap is trading lower now.
According to Mahaney, Snap can still be a good investment for those who has “a stomach for volatility.” He believes the company’s price can come back up to $21 a piece in the long run as Snapchat continues work on its advertising marketplace and interface.