How influential are some stars? The answer is: a lot ... And the social media should be very careful not to annoy them. Because otherwise their market capitalization could be reduced by 1 billion dollars!A testimony to this was Kylie Jenner's tweet, which costs $1.3 billion of Snap's market capitalization.
Shares of Snapchat's parent company lost 7.2% of its value last Thursday after Kylie Jenner said she no longer opens the app.
Whether this is because of Jenner's recent motherhood or because of the new redesign of the application, is not very clear. It is a fact, however, that this statement, which has seriously reflected by nearly 24.5 million followers of the star, initiated massive sales of the company's shares.
Unfortunately, investors in the company and other Wall Street analysts are beginning to see a decline in social networking users' commitment after the recent redesign.
Citigroup's analyst Mark May downgraded the company's market rating to "sell," from a "neutral" last week as a result of the sharp rise in negative consumer reviews over redesign.
However, this does not prevent CEO Evan Spiegel from becoming one of the top executives of US companies. Spiegel received $636.6 million bonus in shares, payable in 2020.
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