Snap Issues Cautious Guidance as Perplexity Deal Ends; Middle East Tensions Cited
Snap reported Q1 earnings and issued cautious forward guidance, citing the end of its Perplexity AI partnership and geopolitical uncertainty in the Middle East as headwinds. The ad-platform operator saw mixed investor sentiment as it balances AI monetization bets against macroeconomic volatility.
The Perplexity partnership dissolution signals shifting priorities in AI commerce tie-ups, where initial enthusiasm for search-and-recommendation integrations is tempering amid revenue-share pressures and competing model deployments.