Friday Download: Snapchat IPO, Tweets & Investors, And #DeleteUber
February 3, 2017
By FTI Consulting
January 2017 has come and flown by, and the world of digital communications is no exception. This week, we take a closer look at Snapchat going public, tweets moving share price, and hashtags losing clients. Happy weekend all!
Snapchat Going Public, Facebook Prepares
Snapchat has been front of the collective digital mind in recent months. The traditional flock of social media trends predictions for 2017 all tipped the temporary photo-sharing and messaging platform for great things in the coming year, and the most obvious marker for their growth came on Thursday when parent company Snap filed for IPO, with a potential valuation reaching $25bn.
Many of the numbers make happy reading for Snap and potential investors: $404.5m revenue (up $58.7m from 2015), 158m daily users, and 2.5 m ‘snaps’ taken daily. But Facebook is ready to fight for the ‘disappearing content’ marketspace as revealed in a recent quarterly earnings call. (Facebook-owned) Instagram Stories already reach 150m daily active users five months after launch, and there are some 65m businesses using Instagram to reach audiences. Snapchat may be the flavour of the month, but it’s got some work ahead.
When Companies Tweet, Investors Listen
An errant tweet has sent the share price of online estate agency Purplebricks into a rollercoaster ride. Last Thursday the company tweeted it had “a record-breaking month for valuations and instructions” in January. Its share price subsequently rocketed 7 per cent; however, it quickly recoiled on Friday after the company issued a statement saying that it was “not aware of any reason” for the dramatic share price movement. The share price rose again this week when the company acknowledged last week’s tweet was actually correct.
Whilst Russ Mould, investment director at AJ Bell, said the confusion at Purplebricks demonstrates that Twitter is “not a suitable forum for the dissemination of price-sensitive information”, it’s clear that when companies tweet, investors listen, and what’s posted on the platform has real potential to disrupt the stock market.
#DELETEUBER Takes Hold
Following Donald Trump’s travel ban on Muslim-majority countries the New York Taxi Workers Alliance called a one hour strike on JFK International Airport. However, Uber tweeted that they had turned off surge pricing, which raises fares in busy times, around JFK, which broke the strike that the Taxi Workers Alliance had attempted to put in place.
Outrage quickly spread across social media at what was seen as the company siding with Trump’s policy, or at least profiting from the decision. #DeleteUber encouraged people to delete the app from their phones and cancel their Uber accounts. Aresponse from CEO Travis Kalanick on Facebook recovered some positive responses, but the episode will stand as an example of the increasingly active social media activism making decisions, mobilising groups, and taking actions against companies.
Also This Week
Beyoncé chooses to announce pregnancy on Instagram [The Verge]
YouTube is allowing ad targeting based on your search history [Ad Age]
78% of Sunday’s Superbowl audience will engage with it through social media [DM News]
A British app will reward you for reporting illegally parked cars [Telegraph]
The views expressed herein are those of the author(s) and not necessarily the views of FTI Consulting LLP, its management, its subsidiaries, its affiliates, or its other professionals, members or employees.
FTI’s digital practice in EMEA operates as a centre of excellence for digital communications within the firm and is staffed by a team of practitioners with industry experience of consumer, corporate and financial communications. The team runs an active portfolio of multi-sector brands and partners with FTI’s teams and clients to provide a wide range of online reputation management services.