Snapchat shares drop following CEO’s alleged “India too poor” comment
After the SNAPCHAT Saga “India Too Poor” the Shares of Snap is now suffering the comment as their share fell 1.5 percent on Monday about not prioritizing expansion growth in India and Spain because they were “poor” countries not cool to me.
The mixture put Snap on track to closing 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.
This hashtag #boycottsnapchat used by Twitter users a call to uninstall Snapchat app after a legal unsealed last week alleged that SnapChat CEO Evan Spiegel in 2015 said he was unconcerned in prioritizing expansion growth in India and Spain because they were “poor”.
The legal document that was filed in a Los Angeles state court in a lawsuit filed by an employee who left the company in 2015 claim that 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 were the words written by a displeased former employee. We are grateful for our Snapchat community in India and around the world,” Snap said in a statement. Snapchat is known to be popular among people under the age of 30 for applying the vomiting rainbows, and bunny faces onto selfies, many investors are severe of its slowing user growth. Snap has warned it may never become profitable.
Snap stock was down 29 cents at $19.90. The Shares of Snap have also fallen to 26 percent from their highest closing price following the public listing, and they remain up 17 percent from the company’s $17 IPO price.