- Kylie Jenner tweeted on Thursday that she doesn’t use Snapchat anymore, which caused shares of the app’s parent company to fall more than 8%.
- Short sellers made $163 million in a single day on the stock move.
Kylie Jenner’s tweet on Thursday about how she doesn’t use Snapchat anymore sent shares of the app’s parent company tumbling, while one group of investors laughed all the way to the bank.
Short sellers — or traders betting on a stock decline — made a whopping $163 million in a single day as Snap shares fell as much as 8%, according to data compiled by financial analytics firm S3 Partners.
It was a nice payday for Snap skeptics who had amassed a nearly $2 billion short position in the company after adding to their wagers since the beginning of the year. Following Thursday’s selloff, Snap short sellers now have made more than $250 million on a mark-to-market basis in 2018.
Here’s a breakdown of Snap’s short interest activity, along with a summary of other heavily shorted companies in the application software sector:
The photo-sharing company has seen a boatload of user backlash in the wake of the rollout of its redesigned app. More than 1.2 million people have signed a petition on Change.org called “Remove the new Snapchat Update.”
The wave of negativity surrounding the rollout has caused Wall Street firms to downgrade the stock. In January, Raymond James downgraded the stock and just two days ago Citigroup followed suit by lowering its price target to $14 a share.
But Snapchat users who are calling for the old ways are out of luck. In a statement released Wednesday, the company said the new app is here to stay, with some adjustments on the way.
Here’s how the company’s stock has performed over the past year, as well as a look at how short interest has fluctuated: