Snap Inc (NYSE:SNAP): Snapchat’s Celebrity Exodus Keeps Getting Worse

0
169

Chelsea Clinton, Chrissy Teigen and Kylie Jenner have in common. They have all had issues with Snap Inc (NYSE:SNAP)’s Snapchat over the past few months.

During the weekend, model Chrissy Teigen joining the latest in a growing list of celebrities to announce her departure from the platform. While tweeting her goodbye massage, Teigen said the app has a very unpopular update, it is a bit difficult her fans find her, and a Snapchat ad which seemed to preach domestic violence by asking its users if they would rather Punch Chris Brown or Slap Rihanna or Punch Chris Brown. In 2008, Chris Brown pleaded guilty of assaulting his then girlfriend Rihanna.

Although the company has since apologized for the off-color reference to domestic violence, the ad has not gone well with several of public figures. In an Instagram, Rihanna narrated stories in which she accused Snap for being dismissive of domestic violence claims in the ad and asked people to “throw the whole app-oligy” away.

On the other hand, Chelsea Clinton, daughter to former US President Bill Clinton and former Senator, State Secretary and 2016 presidential candidate Hillary Clinton, also took to Twitter to condemn the ad, saying it was awful and sad that any company would approve such kind of ad.

Beyond damaging the reputation of the company, celebrity outrage like Teigen’s come with weighty financial risks, too. The company has experienced stock price declines twice this year after a number of celebrities announced their discontent with the platform. The company’s stock went down 5% after the Instagram statement from Rihanna. In yet another related instance, shares fell 6% after Kylie Jenner announced her displeasure the app’s updated design and hinted that she wasn’t using the platform as much anymore.

Facebook, Inc. Common Stock (NASDAQ:FB) has also found itself jumping from one scandal to another in the recent days. The social; media giant has been the subject of a recent mass exodus and many celebrities are encouraging users to #DeleteFacebook due to the ongoing Cambridge Analytica scandal. However, Snapchat is seen as being more vulnerable to influencer-driven campaigns that aim at stopping using the service. Unlike Facebook which has peer-to-peer model, celebrities drive user ship on Snapchat.


THE HERALD FINANCE REPORT

Start your workday the right way with the news that matters most.

Your information is 100% secure with us and will never be shared
Disclaimer & Privacy Policy


LEAVE A REPLY

Please enter your comment!
Please enter your name here