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Snap stock falls as alleged CEO comments rile some on social media

Published Apr 18, 2017 03:42pm

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Shares of Snap fell 1.5 per cent on Monday as the Snapchat owner faced criticism for comments allegedly made by its CEO about not prioritising growth in India and Spain because they were "poor" countries.

The dip put Snap on track to close at its lowest level in nearly a month, a bad sign following its $3.4 billion public listing that was the hottest by a technology company in three years.

Twitter users using the #boycottsnapchat hashtag called for uninstalling the Snapchat app after a legal document unsealed last week alleged that Snap Chief Executive Evan Spiegel in 2015 said he was uninterested in prioritising growth in India and Spain because they were "poor".

The legal document filed in a Los Angeles state court concerns claims made in a lawsuit filed by an employee who left the company in 2015, and Snap has said it considers the litigation to be a publicity stunt.

"This app is only for rich people. I don't want to expand into poor countries like India and Spain," Spiegel is alleged to have said.

"Those words were written by a disgruntled former employee. We are grateful for our Snapchat community in India and around the world," Snap said in a statement.

Snapchat is popular among people under 30 for applying bunny faces and vomiting rainbows onto selfies, but many investors are critical of its slowing user growth. Snap has warned it may never become profitable.

Its stock was down 29 cents at $19.90. Shares of Snap have fallen 26pc from their highest closing price following the public listing, and they remain up 17pc from the company's $17 IPO price.

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Comments (12) Closed



M.Saeed Apr 18, 2017 03:53pm

Good riddance!

South Asia Apr 18, 2017 04:29pm

Many Poor people in India are purposely uninstalling and giving 1 star rating. We the poor people.

AJAY Apr 18, 2017 04:37pm

Only few people uses this app in India.India is second largest social app user after china. I think it is cheap way of popularizing because people would now curiously install this app..

Jayw Apr 18, 2017 05:01pm

CEO got good lesson. Enjoy one star ratings on apple store.

Nasir Hameed Apr 18, 2017 07:59pm

@South Asia

Reality check my friend!!

vikas Apr 19, 2017 12:34am

@Nasir Hameed Absolutely my friend. But for whom - guess?

MG Apr 19, 2017 05:34am

That's the power of Indian people

Joyful Apr 19, 2017 06:26am

Snap chat snapped while trying to chit chat

Dilip Thorat Apr 19, 2017 07:06am

Chinese will promote Snapchat. They have lot of money and distributing among poor.

gulab Apr 19, 2017 08:15am

Must have realised by now the power of "poor" Indians.

ANIL Apr 19, 2017 11:02am

Very few people are aware of snapchat in India. There are instances people are uninstalling SnapDeal ( Popular Indian online shopping app) without realizing SnapDeal and SnapChat are no way connected.

Sagar Apr 20, 2017 01:17pm

@ANIL - Doesn't matter. Even Snapdeal is a cheater.