Snap stock surged 13% after announcing a $400 million deal with Perplexity AI and releasing third-quarter financial results. Perplexity will integrate its AI-powered search engine into the Snapchat app, paying Snap $400 million over one year. Snap expects revenue from the deal in 2026, aiming to build alternative revenue streams. Deutsche Bank analyst Benjamin Black sees the partnership as a positive step amid challenges with large advertisers. Snap’s third-quarter revenue of $1.51 billion exceeded estimates, with daily active users reaching 477 million, surpassing projections.

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