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Snap: Moving Beyond Ads, Thankfully!

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 Update - Nov. 5, 2025

Perplexity AI deal completely changes the investment story when combined with subscriptions. The AHs trade at $9 is just the start of the AI rally. 

-Starting in early 2026, Perplexity will appear in the chat interface for Snapchat users around the world, the companies said.

-Perplexity will pay Snap $400M over one year, through a combination of cash and equity, as the company rolls the service out globally. Snap expects revenue from the partnership to begin contributing in 2026.



Original article posted on Aug. 8

  • Snap's post-earnings slump is overdone; the market is ignoring strong subscription growth and undervaluing future revenue streams.
  • The social messaging subscription business is gaining traction, with nearly 16 million subscribers and new higher-priced tiers like Lens+ and Platinum boosting potential revenue.
  • Despite weak ad growth, Snap's Q3 guidance beats consensus, and the stock trades at a deep discount compared to peers like Pinterest and Reddit.
  • The stock trades at just 2x sales targets despite multiple catalysts in AR and AI; I remain ultra bullish and view current lows as a prime buying opportunity.
Snap, Inc. (SNAP) slumped to the yearly lows after a slightly disappointing quarter, but the dip far exaggerated any miss. The social messaging firm continues to struggle growing the ads business, including a self-inflicted wound in the quarter. My investment thesis is ultra bullish on the stock hitting a double bottom just above $7.


Read the full article on Seeking Alpha. 

Disclosure: Long SNAP. Please review the disclaimer page for more details. 

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