Snap Inc., the parent company of Snapchat, has seen its stock drop by 90% from all-time highs due to competition from TikTok and Meta Platforms’ Facebook and Instagram. Despite this, Snap announced a $400 million deal with Perplexity AI and reported better-than-expected third-quarter results, resulting in a 15% stock jump. Snap, which claims 477 million daily active users, is trending towards a younger demographic. The company is not profitable, but its forward price-to-sales ratio is reasonable compared to Meta’s. Analysts are mixed on Snap’s stock, with most suggesting holding. The new partnership with Perplexity AI could help Snap break even.

Read more at Barchart.: Snap Has a $400 Million Catalyst Right Now. Does It Make SNAP Stock a Buy?