Snapchat is continuing to lose market value as high-status celebrities comment on the company. Rihanna caused the company’s stock to drop after ripping into the platform over an offensive ad. Yesterday, it was reported that the shares began to sink hitting a low of $16.91.
“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!” the singer wrote on her Instagram account. After her post, many took to social media calling for a boycott of the already declining app.
Rihanna’s comments cause the stock to drop nearly 4% in value which resulted in an $800 million loss in market value according to CNN Money. As a result, on Friday morning the stock opened up slightly down on the market.
The singer’s critique of the company follows a complaint by Kylie Jenner just a few weeks prior.
Snap has since apologized for the advert saying it was a posting “error.” Despite the apology, Daniel Ives, the chief strategy officer and head of technology research at GBH Insights says the company needs work to put a stop to the bad press. He tells CNN, “This is a make or break 2024 for Snap, and although we believe it’s heading in the right strategic direction, the Rihanna backlash and ad is another gut punch for this company to make sure they minimize the speed bumps ahead.”
