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The
dip put Snap on track to close 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.
Twitter users using the #boycottsnapchat hashtag called for
uninstalling the Snapchat app after a legal document unsealed
last week alleged that Snap Chief Executive Evan Spiegel in 2015
said he was uninterested in prioritizing growth in India and
Spain because they were "poor".
The legal document filed in a Los Angeles state court concerns
claims made in a lawsuit filed by an employee who left the
company in 2015, and 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 words were written by a disgruntled former employee. We
are grateful for our Snapchat community in India and around the
world," Snap said in a statement.
Snapchat is popular among people under 30 for applying bunny
faces and vomiting rainbows onto selfies, but many investors are
critical of its slowing user growth. Snap has warned it may
never become profitable.
Its stock was down 29 cents at $19.90. Shares of Snap have
fallen 26 percent from their highest closing price following the
public listing, and they remain up 17 percent from the company's
$17 IPO price.
(Reporting by Noel Randewich, additional reporting by David
Ingram; Editing by Cynthia Osterman)
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