Snap shares fall 7 percent after Kylie Jenner slams redesign

Key Points
  • A tweet about Snapchat by reality TV star Kylie Jenner attracted the attention of some Twitter bots on Wednesday.
  • Each had near identical profiles, usernames and messages and shared the same link to a website, labeled "malicious" by CNBC's servers.
Snap shares fall after Kylie Jenner slams redesign
Snap shares fall after Kylie Jenner slams redesign

Snap shares dropped about 7 percent on Thursday, after reality star Kylie Jenner told her 24.5 million Twitter followers she no longer uses the app.

Snap lost well over $1 billion in market capitalization on Thursday.

Jenner added her voice to a growing chorus criticizing Snapchat's redesign.

People have criticized the app for blurring separate features together and promoting sponsored content. Almost immediately after she posted it, Jenner's tweet attracted the attention of some Twitter bots.

Two bots with the same profile picture and close to the same Twitter handles as Jenner took notice. They proceeded to tweet at Jenner 9 times.

Each had the same message and shared a link to the same website, labeled "malicious" by anti-virus software.

Despite an avalanche of criticism, prompted in no small part by the revelation of Russian meddling on social media, major tech companies still struggle to distinguish between real and automated users, and to prevent "fake news" from spreading on their platforms.

A flurry of press for Snap

Jenner wasn't the only critic of Snap this week.

Analysts on Citi downgraded the stock of parent company Snap on Tuesday, contributing to a stock drop of 7 percent. And boutique telecom analysis firm MoffettNathanson reiterated its sell ratings on Snap and Twitter shares on Thursday, slapping Snap with a $10-a-share target, a 46 percent downside to Wednesday's close.

"Despite huge positive moves in Snap and Twitter … we find these names even more overvalued than before," Nathanson wrote.

Snap also released its annual report on Thursday, which revealed more details about the company's executive compensation, M&A and financials over the past three years — and highlighting the nearly unprecedented combination of pay and power awarded to CEO Evan Spiegel.

— CNBC's Tae Kim and Anita Balakrishnan contributed to this report.

Disclosure: CNBC parent NBCUniversal is an investor in Snap.