Snap's stock fell in after-hours trading after the company reported first-quarter earnings and issued cautious revenue guidance, while also revealing the termination of its partnership with generative AI startup Perplexity.
The company cited the Middle East's 'geopolitical situation' as a source of uncertainty, contributing to the conservative outlook.
S. and Israel. Snap shares dropped about 4% in extended trading following the earnings report.
The news comes amid broader market jitters over potential conflict escalation in the region, with U.S. and Iranian officials reportedly close to finalizing a one-page agreement to end the two-month-old conflict involving the U.S. and Israel.
Snap shares dropped about 4% in extended trading following the earnings report.
The company's decision to end its deal with Perplexity, a key player in the AI space, has its strategic direction in the generative AI sector.
Analysts are watching how this shift might affect Snap's ability to compete in the fast-evolving AI landscape, particularly as major tech players like Google, Meta, and Microsoft continue to invest heavily in AI-driven products and services.