Snap stock jumps over 19% on pre-market Wall Street after $400 million deal with Perplexity AI

Multimedia messaging platform, Snapchat (Snap Inc.), stock price jumped more than 19% during the pre-market trading session on the US stock market on Thursday, 6 November 2025, after the company entered a $400 million partnership with Perplexity AI.

“Millions of people connect and discover the world through Snapchat. By bringing Perplexity to Snapchat, we’re able to serve that curiosity directly where it occurs,” said Aravind Srinivas, CEO of Perplexity.

Snapchat-Perplexity deal

In an official announcement on 5 November 2025, Snapchat and Perplexity announced that they have entered into an agreement, which will help the 1 billion active monthly users of Snapchat to use artificial intelligence (AI) through the multimedia messaging platform.

As per the agreement, Perplexity will pay $400 million to Snapchat over a one-year period through a combination of cash and equity as the AI major aims to generate revenue from the partnership starting from 2026.

Snapchat users will be able to ask questions, explore topics they care about, and learn about the world, starting from 2026, as Perplexity AI will appear for all individuals using the messaging platform.

“This partnership reflects our shared vision for the power of AI to enhance discovery and connection on Snapchat, and we look forward to collaborating with more innovative partners in the future,” Evan Spiegel, CEO of Snap Inc. said in the official statement.

Snap stock price trend

Snapchat or Snap share price jumped more than 19% to hit $8.69 in the pre-market session on the New York Stock Exchange (NYSE), compared to $7.30 at the previous US stock market close. The shares closed 2.28% lower after Wednesday's market session.

Snap stock has lost more than 83% in the last five years on Wall Street. The shares are down 38% in the last one-year period, and are trading 35.05% lower on a year-to-date (YTD) basis.

The shares of the multimedia messaging platform have dropped 14.32% in the last one-month period and are down 3.31% in the last five stock market sessions in New York.

According to Marketwatch data, Snap shares hit their 52-week high level at $13.28, while the 52-week low level stood at $6.9, as the shares are trading above their year-low levels. The company's market capitalisation (M-Cap) stood at $12.62 billion before the markets opened on Thursday, 6 November 2025.

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