Snapchat’s Q3 Results Fail to Convince Bulls Despite AI Partnership Boost
Snap Inc.'s stock remains mired in skepticism despite a double-digit post-earnings bounce, as investors question whether its new Perplexity AI collaboration can offset persistent monetization weaknesses. The social media firm's shares rallied on narrative momentum rather than concrete ad-tech improvements—a pattern that has repeatedly triggered violent swings in SNAP's valuation this year.
Market reactions to Snap's earnings have become a barometer for sentiment on its advertising technology stack. While Q3 delivered an EPS beat ($0.10 vs. $0.0 expected), the absence of structural monetization progress keeps analysts cautious. "This remains a show-me story," says one fund manager tracking digital ad platforms. "AI partnerships generate headlines, but advertisers need measurable ROI."
