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Snap Shares Plunge as Ad Glitch and Competition Stall Growth

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Snap’s (SNAP.N) shares fell nearly 21.5% in early trading on Wednesday following a weak quarterly performance and intensifying competition, highlighting its ongoing challenge to keep pace with AI-driven rivals.

The company’s slowest revenue growth in over a year was driven by advertisers cutting marketing budgets amid economic uncertainty and favoring larger platforms like TikTok and Meta’s Facebook and Instagram. A glitch in Snap’s ad-buying platform, which caused ads to be delivered at discounted rates, also contributed to the slowdown. Although Snap’s revenue met estimates, it was a significant drop from the double-digit growth seen over the past five quarters. Snap’s market value could fall by approximately $3.24 billion if losses persist.

Analysts at MoffettNathanson noted advertisers prefer platforms with direct access to purchase-ready users, diverse marketing tools, and clear ROI metrics — areas where Snap currently lags.

Snap’s performance contrasts with competitors Meta and Reddit, which reported strong second-quarter results, driving their shares up by 30.3% and 21.8% respectively this year, compared to Snap’s 12% decline. Following the results, at least 14 brokerages cut Snap’s price target, bringing the median to $9.

Snap is betting on its Sponsored Snaps video ad format, rolled out more broadly in June across the U.S. and other markets, which has driven increased user engagement and actions.

Morgan Stanley analysts said, “For Snap to capitalize on improvements in engagement, it must better demonstrate ad efficacy to advertisers and reduce barriers to adopting its products.”

Nvidia-backed Perplexity launches AI-powered Comet browser to challenge Google Chrome

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Nvidia-backed startup Perplexity AI announced on Wednesday the launch of Comet, a new AI-powered web browser designed to compete with Alphabet’s dominant Google Chrome. The browser aims to revolutionize web navigation by using intelligent AI agents capable of thinking, acting, and deciding on users’ behalf, streamlining tasks into a conversational experience.

Google Chrome currently dominates the global browser market with a 68% share as of June, far ahead of competitors like Safari, Microsoft Edge, and Firefox.

Comet offers users a unified interface where they can ask questions, perform tasks such as booking meetings, compare products, and summarize complex content—all via a built-in AI assistant. The browser targets simplifying workflows with natural language interactions.

Currently, Comet is accessible to subscribers of Perplexity Max, which costs $200 per month, with plans for a wider rollout by invite over the summer.

Backed by investors including Jeff Bezos, SoftBank, and Nvidia, Perplexity is positioning Comet not only as a browser competitor but also exploring new revenue avenues through advertising and e-commerce integration.

The move follows similar AI enhancements by competitors: OpenAI added a search engine feature to ChatGPT, and Google launched AI Overviews, an AI-driven search summary tool, last May.

Comet prioritizes user privacy by storing data locally and not using personal information for AI model training—a key differentiator likely to attract privacy-focused users.

However, Perplexity faces criticism from media companies like News Corp, Forbes, Wired, and Dow Jones for allegedly using their content without permission or payment. In response, Perplexity has introduced a publisher partnership program aimed at fostering collaboration with news organizations.

Paramount’s Naveen Chopra to Lead Finance at Roblox Amid Growth and New Revenue Push

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Naveen Chopra, currently finance chief at Paramount Global, will join video gaming firm Roblox as its new Chief Financial Officer, the companies announced Monday. Chopra takes the role as Roblox expands its engagement with Gen Z users and diversifies into new revenue streams like advertising.

Chopra has been CFO at Paramount since 2020, guiding the company’s shift from traditional media to streaming. Prior to that, he led finance for Amazon’s Devices and Services division. His move comes as Paramount aims to finalize its $8.4 billion merger with Skydance Media, pending U.S. FCC approval.

At Roblox, Chopra will succeed Michael Guthrie, who is stepping down after announcing his departure last year to pursue personal interests. Guthrie will remain through June to ensure a smooth handover and then serve as a consultant.

Wedbush Securities analyst Michael Pachter praised Chopra as a “seasoned professional” and “capable replacement,” highlighting the opportunity to influence Roblox’s growth trajectory.

Roblox has seen a 26% jump in average daily active users, reaching 97.8 million in the quarter ending March 31, leading the company to raise its annual bookings forecast despite economic uncertainties. To attract older gamers and increase spending on virtual items, Roblox is exploring new game genres, including horror.

Andrew Warren, Paramount’s strategic advisor to the CEO, will act as interim CFO during the transition.