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Snapchat's Stock Sinks After Rihanna Denounces Domestic Violence Ad

34 pointsby techman9about 7 years ago

10 comments

khazhouxabout 7 years ago
&gt; Snap Inc&#x27;s stock prices fell around 4 percent later Thursday, wiping out nearly $800 million from its market value, reports CNN<p>I don&#x27;t believe that Rihanna&#x27;s tweet caused $800 million worth of investors to change their mind. In fact, it only finished 1% lower on the day.<p>SNAP stock is like any other: noisy.
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dasil003about 7 years ago
Um, if you look at the stock price it&#x27;s still up 17% since Feb 1st which is before both the Kylie Jenner and Rihanna tweets. Tasteless as the ad was, markets are driven by greed way more than social outrage. Now if this is a trend that actually results in Snapchat becoming uncool and usage falls over time then that would be a story, but for now this is just grasping at straws trying to attribute stock market noise to some minor scandal with zero long-term effect.
Bugeabout 7 years ago
&gt;You spent money to animate something<p>Is this true? From the article it doesn&#x27;t sound like Snapchat made the ad. It sounds like some other company made the ad and paid Snapchat for it to be placed on Snapchat.
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techman9about 7 years ago
The ad in question was of course totally tasteless and tone-deaf, but I&#x27;m curious as to whether Snap is uniquely susceptible to price fluctuations based on the comments of social media influencers for some reason.
thisisitabout 7 years ago
This is really poor journalism. Just 23 days ago, we had <i>In One Tweet, Kylie Jenner Wiped Out $1.3B of Snap&#x27;s Market Value</i>. Discussed here:<p><a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=16439534" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=16439534</a><p>So can we safely create a model for writing stories?<p><pre><code> If SNAP stock sinks find (social media from $celebrity) write $celebrity responsible for wiping $x in market value.</code></pre>
tomcatfishabout 7 years ago
Just a reminder to everyone who thinks the world is simple, any platform is sensitive to somewhat small forces from big players. The article claims that BILLIONS were lost after a Kylie Jenner tweet. Stay cautious
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adamnemecekabout 7 years ago
Yeah no rihanna has little bearing on this. But looking for causality in stock market behavior is fun and makes you seem smart.
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iagooarabout 7 years ago
That&#x27;s what happens if all your business does is sending pictures around. What&#x27;s the intrinsic value of it?<p>Of course people will uninstall the app as quickly as it&#x27;s uncool or they are told to by their idols.<p>If Snapchat generated any kind of value &#x2F; saved a lot of time, people couldn&#x27;t afford to just get rid of it.
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kumarvvrabout 7 years ago
This is just as meaningless as Snapchat having billions in valuation.<p>I just dont get how can SC be valued so much when all it does is move pictures around.
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dokemabout 7 years ago
People don&#x27;t really care about pop celebrities, they might as well be fiction characters. If I were to make the same, rather tame, would-you-rather joke with a group of friends does that mean I &#x27;make light&#x27; of domestic violence? Is it not possible to make a joke that ignores the subtleties and nature of a complex subject for the sake of a cheap laugh? People know where the line is, this isn&#x27;t it, and no one cares when multi-millionaires with nothing in common with anybody hit each other. The world continues to turn...
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