User Engagement

Snap Inc. (SNAP) shares rose 9% after announcing a $400M Perplexity AI collaboration and Q3 results exceeding expectations. The deal integrates Perplexity’s search engine into Snapchat, enhancing information discovery. Snap expects revenue generation from 2026. Q3 revenue reached $1.51B with increased daily active users. However, Snap anticipates lower Q4 DAUs due to age verification implementations and regulatory compliance. Snap is also advancing its hardware ambitions with the projected 2026 launch of its sixth-generation augmented reality glasses, Specs.

Reddit’s Q3 earnings exceeded expectations, with revenue jumping 68% year-over-year to $585 million and EPS at 80 cents. Growth was fueled by strong advertising and data licensing, with the latter becoming increasingly important as companies like Google and OpenAI leverage Reddit’s data for AI training. Global daily active users reached 116 million, a 19% increase. While US logged-in DAU growth slowed, Reddit focuses on improving user experience and international marketing to drive further engagement. Q4 sales are projected to reach $655-$665 million.

OpenAI’s Sora 2, an AI video generator integrated with a social feed, quickly gained popularity, surpassing ChatGPT’s initial download rate. This raises questions about its potential to challenge Meta’s social media dominance and advertising revenue. While analysts acknowledge potential investor anxiety and Meta’s stock has seen a slight decline, Meta’s large user base, history of innovation, and ongoing AI investments may mitigate the threat. Concerns remain regarding the sustainability of AI-generated content and its potential impact on user engagement and retention.

Airbnb is enhancing user connections and experiences with new social features and AI-powered support. A direct messaging system allows experience attendees to connect, fostering community and pre-event coordination. AI chatbots now handle tasks like cancellations, improving customer service efficiency. The platform also features enhanced search capabilities with flexible carousels and integrated maps. These initiatives aim to transform Airbnb into a comprehensive travel companion, fostering user engagement and repeat business beyond home-sharing.