Snapchat Stock Plunges 14% Despite Strong Q1 Results and 55% Growth in AI Feature Usage
Summary
Snapchat stock crashes 14% in after-hours trading despite reporting strong Q1 earnings with $1.36 billion revenue, 460 million daily users, and 55% growth in its controversial My AI feature as CEO announces major investments in AI-augmented reality integration.
Key Points
- Snapchat's My AI feature experiences 55% year-over-year growth in daily active users in the U.S. despite initial controversy and criticism from parents and users
- CEO Evan Spiegel announces the company is heavily investing in integrating AI with augmented reality, calling AR 'the ideal interface for AI' with more announcements expected later this year
- Snap reports strong Q1 2025 results with $1.36 billion revenue (14% increase) and reaches 460 million daily active users, though stock drops 14.41% in after-hours trading