Get the app
Get the app

Join millions of investors on Stash

Investing, simplified

Start today with as little as $5
Get the app
Money News

Kylie Jenner’s Tweet Shakes Snapchat

February 23, 2018

  • Snap’s market cap fell by more than $1 billion following a negative tweet from reality TV star Kylie Jenner
  • People and news can affect stock prices
  • Snap’s stock price had already been under pressure for other reasons
3 min read

Trending news: The disappearing message app Snap ran into some unexpected trouble on Thursday, following a single tweet from Kylie Jenner.

The reality TV star and social media influencer, of Kardashian family fame, threw far-reaching shade, questioning whether anyone really uses Snap anymore.

By Thursday afternoon, Snap’s market cap had lost $1.2 billion, or approximately 10% of its value*.

Here’s what Jenner tweeted:

The tweet got more than 300,000 likes and over 60,000 retweets.

A short while later, Jenner backtracked and wrote:

News and influential people can affect stock prices

Snap’s Jenner snafu is actually an important lesson for anyone investing in the stock market. Current events, economic news, and the public comments of powerful people can all affect stock prices.

You may remember that shortly after Donald Trump was elected president in 2016, his tweets about aerospace defense titan Boeing caused the company’s share price to skid temporarily. In Boeing’s case, Trump seemed to suggest his administration might cancel a contract for a new, multi-billion dollar Air Force One, slated to be built by the aerospace company.

Investors might have taken Jenner’s vote of no-confidence as a sign that the platform may be losing its appeal with its target audience.

In Snap’s case, Jenner is an important social media influencer who represents the age group most likely to use the app. Investors might have taken Jenner’s vote of no-confidence as a sign that the platform may be losing its appeal with its target audience.

In 2017, Jenner hosted a series on Snapchat called “Ask Kylie” where she fielded questions from fans about her career, family drama, and breakups.

What is a market cap?

The stock market value of a company, also referred to as its market cap, is one way to gauge a company’s total worth to investors.

To arrive at a company’s market cap, you multiply the number of shares it has made available to the public for sale, by the most recent stock price. In Snap’s case, it has 661,834,416 shares outstanding, according to the Nasdaq.

The day before Jenner’s tweet, its stock traded at a high of approximately $19 a share. Following the tweet, its shares sank as low as $17.15*.

Here’s how you do the calculation:

661,834,416x$19=$12.6 billion

661,834,416x$17.15=$11.4 billion

The difference between the stock high on Wednesday and it’s low on Thursday translates into a market cap loss of approximately $1.2 billion, which represents a decrease of about 10%.

Snap: The bigger picture

Jenner, who has 25 million followers on Twitter, is certainly an important social media influencer. But stock analysts are quick to point out that Snap’s performance has been uneven in recent months.

Snap’s share price has been on something of a roller coaster of late. Just last week, following a strong fourth quarter earnings report, Snap’s share price increased 40% in a day.

Still, financial experts have also questioned Snap’s ability to continue growing. Earlier this week, a Citigroup analyst downgraded the stock to “sell” from a “neutral” rating, citing negative comments about the app’s recent redesign, which could cause user growth to fall, Bloomberg reported.

More than 1 million angry users signed a petition telling Snap to change the redesign because it made the app too difficult to use, according to Reuters.

Cosmetics company Maybelline sent out its own tweet about Snap on Thursday, asking its 665,000 followers if the company should still use the platform to communicate with customers, but later reportedly deleted the tweet.

More about Snap:

By Jeremy Quittner
Jeremy Quittner is the senior writer for Stash.

*Source, Yahoo Finance, Friday, February 23

Next for you
Diversification: The Biggest Lesson You Can Learn From Snap Inc.

Investment Profile

Bonds Worldwide

An International Bond ETF on Stash

Learn more
Explore more articlesChoose a topic to learn more about
social media Careers Technology Retirement love and money

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit