Group 1 - The stock market theme for 2025 indicates that companies involved with AI are experiencing significant positive impacts, exemplified by Snap's recent partnership with Perplexity AI [1] - Snap, known for its disappearing-messages feature, is leveraging AI technology to enhance its offerings and potentially drive growth [1] Group 2 - Gary Alexander, an analyst with extensive experience in technology and startups, has been contributing insights to the industry since 2017, indicating a strong background in evaluating tech companies [2]

Group 1 - The stock market theme for 2025 indicates that companies involved with AI are experiencing significant positive impacts, exemplified by Snap's recent partnership with Perplexity AI [1] - Snap, known for its disappearing messages feature, is leveraging AI technology to enhance its offerings and potentially drive growth [1] Group 2 - Gary Alexander, an analyst with extensive experience in technology and startups, contributes insights that reflect current industry trends and themes [2] - His work has been featured in various publications and trading apps, indicating a broad reach and influence in the investment community [2]

Core Insights - Reddit (RDDT) and Snap (SNAP) are prominent social media platforms leveraging user engagement for digital advertising revenue [1][2] - The global digital advertising market is projected to grow from $488.4 million in 2024 to $1,164.25 million by 2030, with a CAGR of 15.4% from 2025 to 2030, benefiting both companies [2] Summary of Reddit (RDDT) - Reddit is experiencing strong user engagement, with increases in daily and weekly active users and Average Revenue Per User (ARPU) [3] - In Q3 2025, Reddit's advertising revenues surged 74% year-over-year to $549 million, driven by a 75% increase in active advertisers [4] - ARPU grew 41% year-over-year to $5.04 in Q3 2025, indicating effective monetization strategies [5] - Reddit Answers feature has gained popularity, with over 75 million weekly searches, enhancing user engagement and expanding reach to multiple languages [6] - The earnings estimate for Reddit in 2025 has risen by 25.6%, indicating strong growth potential [10][20] Summary of Snap (SNAP) - Snap is benefiting from improved advertising demand, with Q3 2025 advertising revenues rising 5% year-over-year to $1.32 billion, primarily from Direct Response advertising [7] - Snapchat has over 477 million daily active users, an 8% increase year-over-year, and 943 million monthly active users, a 7% increase year-over-year [8] - AR engagement remains robust, with over 8 billion daily uses of AR lenses and 350 million daily active users engaging with AR experiences [9] - Despite growth in user engagement and AR features, Snap faces challenges with weak brand advertising revenues and increased competition [13][21] Performance and Valuation Comparison - Year-to-date, Reddit shares have gained 20.1%, outperforming Snap, which has declined by 32.2% [12] - Reddit shares are currently trading at a forward Price/Sales ratio of 13.4X, significantly higher than Snap's 1.92X, indicating overvaluation for both [16] - The Zacks Consensus Estimate for Reddit's 2025 earnings is $2.35 per share, a 170.57% year-over-year increase, while Snap's estimate is 25 cents per share, reflecting a 13.79% decline [20] Conclusion - Reddit is positioned for greater upside potential due to its expanding advertising business and improved user experience, while Snap continues to struggle with brand advertising and competition [21][22]

Core Insights - DoorDash shares fell significantly after the company reported earnings that did not meet expectations and provided a weak outlook for future performance [1][2][6] - Major U.S. equity indexes, particularly tech stocks, experienced declines amid concerns regarding an AI bubble and a series of earnings reports [1][6] Company Performance - DoorDash (DASH) was the worst performer in the S&P 500, with earnings falling short of forecasts and a warning of rising expenses due to investments in new products and expansion plans [2][6] - Paycom Software (PAYC) also saw a decline in shares after missing profit estimates and reiterating its outlook, raising concerns about demand and growth potential [2] - Datadog (DDOG) emerged as the best performer in the S&P 500, with shares surging after reporting earnings that exceeded forecasts and an improved outlook due to a growing customer base [3][6] - Snap (SNAP) experienced a rise in shares following better-than-expected quarterly results, increased user engagement, and announcements of a stock buyback and AI search capabilities [4] Market Trends - The overall market saw a decline, with the Dow, S&P 500, and Nasdaq all losing ground, primarily driven by tech stocks [1][6] - Oil and gold futures dropped, while the yield on the 10-year Treasury note decreased, indicating a shift in investor sentiment [4]

Federal Reserve Monetary Policy Outlook - Federal Reserve Governor Stephen Miran anticipates a rate cut in December, preferring 50 basis point reductions, while many colleagues favor 25 basis points [2] - Miran describes the current labor market deterioration as gradual, indicating no immediate need for emergency measures [3] - The overnight reverse repurchase agreement (RRP) facility saw balances near zero for most of the month, with an increase only towards month-end, reflecting changing dynamics in money markets [4] Google Enhances AdTech with New AI Capabilities - Google has introduced three AI-powered updates for its advertising products: Ad Manager, AdSense, and AdMob, aimed at automating tasks and enhancing monetization for publishers [5] - Key features include a generative AI tool for custom performance reports and an AI chat assistant for instant support, along with a new AI brand safety feature to block non-compliant ads [6] Social Media Giants Face Youth Addiction Trial - Major social media companies, including Meta, Alphabet, Snap, and Bytedance, must stand trial over claims that their platforms contribute to youth addiction, as per a lawsuit filed by New York City [7] - The lawsuit alleges that these companies have intentionally designed features that hook young users, leading to psychological harm and societal costs, prioritizing profits over safety [8][9]

Core Insights - Snap (SNAP) reported a Q3 2025 loss of 6 cents per share, meeting the Zacks Consensus Estimate, compared to a loss of 9 cents per share in the same period last year [1][10] - Revenues increased by 10% year-over-year to $1.51 billion, surpassing the Zacks Consensus Estimate by 1% [1][10] Revenue Breakdown - North America, accounting for 60% of total revenues, saw a 5% year-over-year increase to $898 million [2] - Europe, representing 20% of revenues, experienced a 20% rise to $298 million [2] - Revenues from the Rest of World (ROW), making up 21% of revenues, reached $311 million, up 17% year-over-year [2] User Engagement and Growth - Snap's global daily active users (DAU) reached 477 million, an 8% increase year-over-year, with an addition of 8 million DAU quarter-over-quarter [4][10] - North America's DAU was 98 million, down 3% year-over-year, while Europe's DAU was 100 million, up 1% year-over-year; ROW's DAU was 280 million, up 15% year-over-year [5][10] - Monthly active users reached 943 million, reflecting a 7% year-over-year growth [5] Subscription and Other Revenues - Other revenues, primarily from Snapchat+ subscriptions, surged 54% year-over-year to $190 million, with an annualized run rate exceeding $750 million [3] - Snapchat+ subscribers approached 17 million, marking a 35% year-over-year growth [3][6] Advertising Performance - Direct response advertising revenue increased by 8% year-over-year, driven by strong demand from small and medium-sized business advertisers [8] - Purchase-related ad revenue grew over 30% year-over-year, aided by improved campaign performance [8] - Sponsored Snaps platform showed significant effectiveness, achieving up to 22% higher conversions and 19% lower cost per action [9][11] Financial Metrics - Adjusted cost of revenues rose 5% year-over-year to $671 million, while adjusted operating expenses increased by 8% to $654 million [12] - Adjusted EBITDA was $182 million, up 38% from the previous year, with an adjusted EBITDA margin expanding by 2 percentage points to 12% [13] Cash Flow and Balance Sheet - As of September 30, 2025, cash, cash equivalents, and marketable securities totaled $3 billion, up from $2.9 billion as of June 30, 2025 [14] - Operating cash flow was $146.49 million, compared to $115.87 million in the prior year, while free cash flow increased to $93 million from $72 million [14] Guidance - Snap anticipates a decline in daily active users in Q4, with projected revenues between $1.68 billion and $1.71 billion, indicating 8-10% year-over-year growth [15] - Adjusted EBITDA is expected to range between $280 million and $310 million, reflecting improved cost discipline [15][16]

Legal Challenges - Meta Platforms, ByteDance, Alphabet, and Snap will face trial over allegations of designing social media platforms to addict youths [1] - Thousands of cases are expected to be presented to juries [1]

.@emilychangtv heads to the Venice boardwalk to spend a day with Snap Co-founder and CEO @evanspiegelThey talk about AI + AR, Specs, and whether Silicon Valley is...overrated.Watch the full episode of The Circuit https://t.co/Ad8utORpZe https://t.co/xF0aaDBc2x ...

Core Insights - Perplexity will pay Snap $400 million over one year to integrate its AI-powered answer engine into Snapchat [1] - This integration is the first of its kind for Snapchat, aiming to connect AI companies with Snap's 943 million monthly active users [2] Company Strategy - Snap's CEO, Evan Spiegel, emphasized the partnership as a means to enhance discovery and connection on Snapchat, reflecting a shared vision for AI's potential [3] - The integration is part of Snap's strategy to accelerate and diversify revenue growth [3][4] - Snap aims to build out its AI platform and sees a unique opportunity to distribute AI agents through its chat interface [4] User Experience - Perplexity will start appearing in Snapchat in early 2026, allowing users to ask questions and receive conversational answers from verifiable sources [4] - Perplexity will become the default AI for all Snapchat users from January 2026, while users can still interact with the existing My AI chatbot [5]

[Music] [Music] Good Thursday morning from Yahoo Finance's New York City headquarter studios. I'm Yahoo Finance executive editor Brian Sazy. I've been lurking on our Yahoo Finance live blogs which you uh you can find at the top of our homepage all morning just digesting a ton a ton of headlines.Snapshares are ripping higher as an at $400 million deal with Perplexity. Pexity's search capabilities will appear in the chat interface starting in early 2026. Nothing disappearing there.Big day for Tesla and CO Elo ...