Tag Archives: $1.3

With 1 Tweet, Kylie Jenner Cut $1.3 Billion From Snapchat. Here's the Explanation Everyone's Missing
February 23, 2018 6:00 am|Comments (0)

With a single tweet yesterday, Kylie Jenner sucked $ 1.3 billion out of the market capitalization of Snap, Inc.  

Her whole message ran just 18 words, and that includes “sooo” and “ugh.” It all ads up to more than $ 72 million lost, for each word she wrote.

So, was it simply a tweet? Is Jenner just throwing in with the 1.2 million people who signed a petition objecting to Snapchat’s recent redesign?

Or is there something else going on?

I don’t have any inside information, but the timing of the tweet–the exact timing–makes me raise an eyebrow.

Here’s the background. Jenner is a social media influencer of the first order, making between $ 250,000 and $ 500,000 per post, according to one estimate.

That’s more money for a single post that almost everyone who reads this article makes in a year. Big-time influencer money. 

Pretty impressive performance for a woman who won’t even be able to drink legally in the United States until August 10 of this year. But Jenner is a Kardashian (half-sister of Kourtney, Kim and Khloé Kardashian).

Whatever else anyone may say, the Kardashians are brilliant marketers. I’m not exactly their demo, but I have to respect something about what they’ve managed to build.

And, whatever else they do, they don’t do things like this without thinking it through.

So, three things.

First, the change in Snap’s design potentially impacts the degree to which Jenner–heck, any of the Kardashians–can make money on the platform. Those 1.2 million Snapchat users who signed the petition? They’re her audience.

If there’s a change, of course she’d make noise. Double irony points for doing so on Twitter.

Second, the timing of the tweet: 4:50 p.m. Eastern time–less than an hour after the U.S. markets closed.

Recently, I wrote about how Mark Zuckerberg’s post in January about changing how Facebook’s news feed works sent his company’s stock into a tumble, and devaluing his own stake by $ 3 billion. Next time he posted, he did it outside trading hours.

So, by posting just outside trading hours, it’s almost as if Jenner knew she could impact Snap’s share price–but didn’t want to overwhelm it.

I don’t have any inside information. It’s just a hunch, but it feels like a a warning shot: Hey Snap, pay attention to what I can do if I want to!

But, it also feels like it’s not intended as a fatal blow. In fact, KJ did tweet again, reminding Snap that it was her “first love.” 

Awwww.

Sure enough, the stock price rebounded later Thursday, too. All’s well that ends well, right? 

At least until the next tweet.

Tech

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Roku’s IPO Price Just Gave the Company a $1.3 Billion Valuation
September 28, 2017 10:30 am|Comments (0)

Video streaming platform Roku has raised $ 219 million in its Wednesday initial public offering.

Priced at $ 14 a share, the company sold 15.7 million shares from Roku and some of its private shareholders, valuing the company at $ 1.3 billion. The stock will make its debut on the Nasdaq exchange today under the symbol “ROKU.” The IPO was a success for Roku, which had initially proposed a $ 12-14 a share range.

Read: How Advertising Could Be Roku’s Growth Engine

Roku’s boxes allow users to stream content from a variety of video services, including Netflix, YouTube, and HBO. As of June 30, the company has 15.1 million active accounts, with users streaming more than 6.7 billion hours in first half of the year.

While the growing streaming trend has made Roku popular, the company has had largely unprofitable growth since it was founded in 2002. Last year, the company brought in $ 399 million in revenue, but lost $ 43 million. In the first half of this year, it lost $ 24.2 million.

Read: A New Phishing Scam Is Targeting Netflix Users

According to TechCrunch, Roku had previously raised more than $ 200 million in capital since 2008. Menlo Ventures was the largest stakeholder prior to the IPO, owning 35.3%, and Fidelity owned 12.9%.

Tech

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