The SnapChat stocks dropped by 1.5 percent as per the Monday reports. It’s the lowest closure for SnapChat shares for the whole month. While SnapChat faces one of the biggest stock downing, people claim that its comment on India and Spain is the real reason.
The dilemmas of SnapChat following a vexatious comment on India and Spain doesn’t seem to cease. Recently, some reports alleged that the SnapChat CEO had stated no plans of expansion in India and Spain. Now the reason he cited for this was the poverty of the two countries. He says that the SnapChat is for rich people.
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A legal document last week claimed the SnapChat CEO, Evan Spiegel asserted the above in 2015. The document was filed in a Los Angeles state court. An employee who left the SnapChat in 2015 had filed the mentioned lawsuit back then. The paper quotes Evan, “This app is only for rich people. I don’t want to expand into poor countries like India and Spain.”
The provoked Indians decided not to let SnapChat get away easily after the CEO’s statement. #boycottsnapchat was a huge trend on Twitter. People ran a campaign calling others to uninstall the popular app, and that seems to have worked as well.
However, SnapChat claims the litigation nothing more than a publicity stunt. SnapChat in its statement says, “Those words were written by a disgruntled former employee. We are grateful for our Snapchat community in India and around the world.”
Whatsoever be the case, the results couldn’t have been worse for the company. The boycott campaign in India has affected the stocks of the company. And the downfall is pretty serious.
In the recent stock market reports, Snapchat faced a notable downfall in its stocks. The SnapChat shares fell by 1.5 percent recording the highest downing for the month. And, this is when the $3.4 billion listing of SnapChat happens to be the highest by any tech firm in last three years.
The SnapChat stocks fell 29 cents at $ 19.90. The numbers indicate a fall of 26 percent from the highest closing stock price of the SnapChart after the public listing. SnapChat stays 17 percent uphill from its $17 IPO price. We are still to witness what the future has in store for one of the biggest tech companies the world has ever had.