Okay, so Snap's stock jumped 15% because they beat expectations by a hair and announced some "partnership" with Perplexity AI. Color me unimpressed. Let's be real, folks, this smells like a company flailing, grabbing at the latest shiny object to distract from the fact that, well, they're still Snap.
This Perplexity deal... give me a break. They're handing over prime real estate in their chat inbox to an AI chatbot in exchange for $400 million (over a year, mind you, and in "cash and equity"—whatever that means). Snap shares rocket 15% on strong forecast, $400 million Perplexity deal Spiegel says it'll help Perplexity get more subscribers. Right. So, Snap's basically becoming a glorified ad platform for another company's AI? How is that innovative?
And what about Snap's own My AI chatbot? Are we just supposed to forget about that expensive venture? It’s like they're admitting their own AI is garbage. Which, let's be honest, it probably is. I tried using it to plan a trip once, and it suggested I visit the moon. Seriously.
But wait, there's more! Spiegel says they won't be selling "advertising against the Perplexity responses." Oh, how generous! So, they'll just subtly nudge users toward Perplexity subscriptions. It's not advertising if you call it "helping a partner," right?
Then there's the whole AR glasses thing. They're spinning off a separate subsidiary to "speed up development." Translation: "We're hemorrhaging money on this vanity project, and maybe if we wall it off, it won't sink the whole ship." Honestly, who is even using these things? I haven't seen a single person wearing Snap Spectacles in public, ever. Maybe I need to get out more. Nah.
And while we're at it, let's not forget the user metrics. They're bracing for a DAU dip because of new regulations and age verification stuff. Australia's social media minimum age bill is gonna hit them hard, and they know it. So, they're trying to soften the blow with AI hype and stock buybacks. Classic.
It's like rearranging deck chairs on the Titanic, ain't it?
Snapchat+ subscriptions could also have an "adverse impact on engagement metrics." You don't say! People don't want to pay for features that should be free, especially on a platform that's already losing its cool factor. Who would have guessed?
Snap's finance chief Derek Andersen even admitted that "The North America LCS segment remains the primary headwind to our overall revenue growth." So, they're struggling to make money in their biggest market. Sounds sustainable.
