Snapchat and Pinterest are both leveraging AI to enhance their platforms, but their approaches and market positions differ. Snap has partnered with Perplexity AI in a deal that will see Perplexity pay Snap $400 million over the next year. This collaboration aims to integrate AI-generated search responses directly into Snapchat, with revenue contributions expected to begin in 2026. Snap's focus on performance-driven advertising, enhanced by AI-driven features, has led to positive results, including a rise in direct-response ad revenue.
Pinterest is also expanding its revenue beyond $1 billion, but some analysts are concerned about the potential existential risk AI could pose to the company. Despite these concerns, Pinterest's stock currently offers a significant upside, with analysts projecting a nearly 52% potential increase. Both platforms have seen user growth, with Snap's global monthly users increasing by 7% to 943 million and Pinterest's rising by 12% to 600 million. However, Pinterest's monetisation has struggled to keep pace with user growth, making it more vulnerable to economic headwinds.
