By Catie Hogan
Publication Date: 2025-12-01 13:00:00
The $400 million deal helps Snap’s Snapchat capitalize on Gen Z while exposing Perplexity to nearly a billion users.
Snap (SNAP +0.92%) is once again looking to differentiate itself from other social media platforms; this time, it’s an announced partnership with Perplexity that could do the trick.
Snapchat, with its nearly 1 billion users, will embed Perplexity within its app and allow people to ask questions and converse with the artificial intelligence (AI). The integration is expected to launch in early 2026. The hope is that this feature will keep users engaged in the app for longer, enabling increased user retention, profitability, and perhaps even diversifying revenue streams.
Today’s Change
(0.92%) $0.07
Current Price
$7.68
If Snapchat can roll this new feature out without hiccups and keep AI costs under control, the app has an excellent opportunity to bolster its business for the foreseeable future.
Image source: Getty Images.
Snap stock is still a bargain
Snap is still trading near all-time lows, so if the Perplexity integration happens smoothly, the ad revenue driven by an increase in time spent per user could be substantial. In addition to ad revenue, there’s potential for brands to sponsor AI answers, offer AI-driven shopping suggestions, and cross-sell or upsell opportunities. Snap could also charge a premium subscription to use…
