Snap Shares Under Pressure on Cautious Guidance and Perplexity AI Split

Snap Inc, which trades under the ticker SNAP on the New York Stock Exchange, reported its first-quarter earnings but issued a cautious revenue outlook, weighing on investor sentiment. The company confirmed the termination of its partnership with generative AI startup Perplexity, a move that has reportedly triggered interest from activist investors considering a potential campaign. Management attributed the financial uncertainty to ongoing geopolitical tensions in the Middle East and their subsequent impact on global advertising spend. While the split with Perplexity was described as amicable, the loss of this AI integration partner has heightened competitive concerns. Analysts are now focusing on how Snap will navigate potential pressure from activist shareholders while attempting to sustain growth momentum. This situation highlights the increasing vulnerability of social media firms to both shifting tech alliances and external investor demands.