Reality TV star and social media addict Kylie Jenner moves markets.
Shares of struggling Snap Inc. (SNAP) plunged 8% on Thursday following a tweet from Jenner to her 22.4 million followers against the new Snapchat redesign. The stock's decline racked up $163 million in paper profits for those short Snap's stock, according to research firm S3 Analytics. Overall, short-sellers have made $256 million in paper profits on Snap this year.
Said Jenner in a tweet (telling as to her favorite social platform right now...) Wednesday, "sooo does anyone else not open Snapchat anymore? Or is it just me...ugh this is so sad." Jenner added, "still love you tho snap...my first love."
Investors clearly aren't underestimating the power of perception following a tweet from social influencer. A tweet from Kylie could reinforce what most Snap fans (or former fans) are feeling right now: a sense of hate around the new redesign. With reinforcement, comes a search for the next hot social platform and the use of Twitter (TWTR) by the youth of the world (Action Alerts Plus holding Facebook (FB) is for old people).
For more on the Snapchat redesign and how it will impact Snap's stock, read this by TheStreet's tech reporter Francesca Fontana. As Fontana reveals below, she isn't a fan of the new Snapchat ... ditto TheStreet's Kinsey Grant.