meta, openai and palantir Updates

Snap's stock experienced a significant surge, climbing over 25 percent, following the announcement of a $400 million partnership with Perplexity AI Inc. This deal involves Perplexity integrating its AI-powered answer engine into Snapchat's chat interface, with revenue for Snap from this agreement expected to begin in 2026. Snap also reported strong third-quarter 2025 earnings, with revenue reaching $1.51 billion, a 10 percent increase year over year, and daily active users growing to 477 million. The company further announced a $500 million stock buyback program. This move positions Snap to better compete with rivals like Meta, as Perplexity will pay Snap $400 million over one year in cash and equity, though Snap CEO Evan Spiegel noted the company will not sell ads against the chatbot's responses. The broader AI sector continues to see significant activity and debate. Language-learning app Duolingo also reported a strong third quarter for 2025, with revenue hitting $271.7 million, a 41.1 percent increase, while online legal service provider LegalZoom surpassed expectations with $190.2 million in sales. SoundHound AI saw its revenue jump 68 percent year over year to $42.0 million, reaffirming its goal for adjusted EBITDA profitability by the end of 2025. Meanwhile, driverless taxi technology company Pony AI debuted on the Hong Kong stock exchange, raising $863 million for research and development and expansion plans. Bank of America CEO Brian Moynihan outlined plans for higher profits, targeting a 15 percent increase in earnings per share by 2025, driven by investments in artificial intelligence and machine learning. Electronics manufacturing giant Foxconn anticipates strong growth in the fourth quarter of 2025, with October revenue of US$28.99 billion, fueled by the demand for AI servers and smartphone production. Despite these positive developments, concerns about high valuations in AI stocks persist. OpenAI CEO Sam Altman and Palantir CEO Alex Karp publicly dismissed these worries, with Altman addressing OpenAI's substantial planned spending relative to its revenue. However, famed investor Michael Burry has bet $1.1 billion against Nvidia and Palantir, and experts question if the current hype surrounding AI, particularly Nvidia's $5 trillion valuation, aligns with reality. Jim Cramer's Charitable Trust, for instance, increased its stake in GE Vernova, a company that produces electrification products for data centers, even as its shares have fallen due to broader AI stock valuation concerns.

Key Takeaways

• Snap's stock surged over 25 percent after announcing a $400 million partnership with Perplexity AI and reporting Q3 2025 revenue of $1.51 billion.
• Perplexity AI will integrate its answer engine into Snapchat's chat interface, with Snap expecting to recognize revenue from the $400 million deal starting in 2026.
• Snap's daily active users reached 477 million, an 8 percent increase year over year, and the company also initiated a $500 million stock buyback program.
• Duolingo's Q3 2025 revenue grew 41.1 percent to $271.7 million, while LegalZoom's sales increased 12.8 percent to $190.2 million, both beating estimates.
• SoundHound AI reported a 68 percent year-over-year revenue increase to $42.0 million in Q3, and aims for adjusted EBITDA profitability by the end of 2025.
• Pony AI raised $863 million through its debut on the Hong Kong stock exchange, planning to use funds for R&D and expanding driverless taxi services.
• Bank of America plans to increase earnings per share by 15 percent by 2025, driven by investments in AI and machine learning.
• Foxconn expects strong Q4 2025 growth, with October revenue of US$28.99 billion, boosted by AI servers and smartphone production.
• OpenAI CEO Sam Altman and Palantir CEO Alex Karp dismissed concerns about their companies' high valuations, despite investor questions about AI infrastructure funding.
• Investor Michael Burry has bet $1.1 billion against Nvidia and Palantir, reflecting growing concerns about high AI stock valuations and the potential disconnect between hype and reality.

Snap stock soars 25 percent on Perplexity AI deal and strong earnings

Snap's stock price jumped over 25 percent after announcing a $400 million partnership with Perplexity AI Inc. The company also reported strong third-quarter earnings, with revenue rising 10 percent to $1.51 billion. Perplexity AI will pay Snap $400 million over one year in cash and equity, with revenue from this deal expected to start next year. Perplexity's answer engine will be added to Snapchat's Chat interface starting in 2026. Snap's net loss narrowed to $104 million, and daily active users reached 477 million.

Snap shares climb on Perplexity AI deal and stock buyback

Snap's shares rose over 16 percent after the company announced a $400 million deal with AI firm Perplexity and a $500 million stock buyback program. Perplexity will integrate its AI search tool into Snapchat's chat interface early next year, allowing users to get conversational answers from verifiable sources. Perplexity will pay Snap $400 million over the next year through cash and equity. Snap also reported strong third-quarter 2025 revenue of $1.51 billion, beating analyst estimates. Daily active users increased to 477 million, an 8 percent rise year over year.

Snap stock jumps on Perplexity AI partnership

Snap's shares surged 16 percent after the company announced a $400 million deal with Perplexity. Perplexity's AI-powered search engine will be integrated into Snapchat, helping it compete with rivals like TikTok and Meta. CEO Evan Spiegel stated that Perplexity will control the chatbot's responses within Snapchat, and Snap will not sell ads against them. Perplexity will pay Snap $400 million over one year in cash and equity, with revenue expected to start in 2026. Snap also reported strong third-quarter revenue, beating analyst estimates.

Snap stock rises 13 percent with Perplexity AI deal and strong revenue

Snap's stock surged 13 percent after the company announced a $400 million deal with Perplexity AI. Perplexity will integrate its AI-powered search engine directly into the Snapchat app. As part of the agreement, Perplexity will pay Snap $400 million over one year through cash and equity, with Snap expecting revenue from this deal in 2026. The company also reported strong third-quarter revenue of $1.51 billion, beating Wall Street estimates. Daily active users increased 8 percent year over year to 477 million.

Duolingo beats revenue estimates in Q3 2025

Language-learning app Duolingo, ticker DUOL, reported strong third-quarter 2025 results. The company's revenue reached $271.7 million, a 41.1 percent increase from last year, exceeding market expectations. Duolingo also expects next quarter's revenue to be around $275 million. Its GAAP profit of $5.95 per share was significantly higher than what analysts predicted.

LegalZoom Q3 revenue beats expectations

Online legal service provider LegalZoom, ticker LZ, announced its third-quarter 2025 results, surpassing Wall Street's revenue expectations. The company's sales grew 12.8 percent year over year, reaching $190.2 million. LegalZoom also provided a strong revenue forecast for the next quarter, at $184 million, which is 4 percent higher than analyst predictions. Its GAAP profit was $0.02 per share, matching analyst estimates.

Pony AI debuts in Hong Kong raises $863 million

Driverless taxi technology company Pony AI made its debut on the Hong Kong stock exchange on November 6, 2025. CEO James Peng announced the company raised $863 million from the listing. Pony AI plans to use these funds for research and development. The company also intends to expand its driverless taxi services both within its home country and internationally.

Bank of America plans earnings growth and AI investments

Bank of America CEO Brian Moynihan announced plans for higher profits at the bank's first investor day in almost 15 years. The bank aims to increase its earnings per share by 15 percent by 2025. It also expects to grow its revenue by 5 to 7 percent each year during the same period. Moynihan highlighted investments in artificial intelligence and machine learning to improve operations and customer service. Bank of America's stock rose slightly after the presentation.

AI leaders dismiss concerns about company valuations

OpenAI CEO Sam Altman and Palantir CEO Alex Karp publicly dismissed questions about their companies' high valuations this week. Altman responded to concerns about OpenAI's $1.4 trillion planned spending compared to $13 billion in revenue. Karp called investor Michael Burry "bats—t crazy" for shorting Palantir stock. Analysts like Rishi Jaluria from RBC Capital Markets note growing investor questions about how AI infrastructure will be funded. Some experts believe standard metrics may not fully capture the value of AI companies, especially with large partnerships.

Jim Cramer's Trust buys GE Vernova shares on AI stock dip

Jim Cramer's Charitable Trust bought 10 more shares of GE Vernova, ticker GEV, at about $549 each. The Trust now owns 100 shares, increasing its stake to 1.45 percent. GE Vernova makes natural gas turbines and electrification products used in data centers. Its shares have fallen 17 percent from their August 6 record high of $664, partly due to concerns about AI stock valuations. However, GE Vernova's backlog increased 15 percent year over year to $135 billion by the end of Q3. The company also bought the remaining 50 percent of Prolec GE to boost its electrification business.

Foxconn expects strong growth in fourth quarter 2025

Foxconn, also known as Hon Hai Precision Industry, expects strong growth in the fourth quarter of 2025. The leading electronics manufacturer reported October 2025 revenue of NT$895.71 billion, which is about US$28.99 billion. This revenue marks a 7 percent increase from the previous month and an 11.29 percent rise compared to last year. The company's growth is driven by the ongoing boom in AI servers and the busy season for smartphone production.

SoundHound AI reports strong Q3 earnings and revenue growth

SoundHound AI, ticker SOUN, reported strong third-quarter earnings, with revenue reaching $42.0 million, a 68 percent increase year over year. This figure beat analyst expectations of $40.5 million. The company reaffirmed its goal to achieve adjusted EBITDA profitability by the end of 2025. SoundHound also raised its full-year revenue guidance to $165 million to $180 million. Its voice AI network now covers over 14,000 restaurant locations, adding about 1,000 sites in Q2. CEO Keyvan Mohajer highlighted the booming enterprise AI adoption and the company's expanding product suite across various industries.

Investors worry about high valuations in AI stocks

Investors are growing concerned about the high valuations of artificial intelligence stocks, leading to a recent dip in major stock indices. Markets in Asia, including the Nikkei 225, saw declines, and shares of companies like Samsung and TSMC also fell. Investment analysts suggest that companies might be overspending on AI without sufficient returns, causing investor fatigue. Famed investor Michael Burry, known for "The Big Short," has even bet against Nvidia and Palantir with $1.1 billion. Experts question if the reality of AI matches the current hype, especially regarding Nvidia's $5 trillion valuation.

Sources

• Snap stock price jumps 25% in extended trading on $400 million Perplexity AI deal, Q3 earnings
• Snap Shares Surge 16% In Premarket After Perplexity AI Deal And Stock Buyback Announcements
• Snap shares surge as $400 million Perplexity deal rekindles AI ambitions
• Snap stock surges 13% after announcing Perplexity AI deal, reporting strong revenue
• DUOL Q3 Deep Dive: User Growth Prioritized Over Monetization Amid Strategic AI Investments
• LZ Q3 Deep Dive: Subscription Model, AI Investments, and Channel Partnerships Drive Growth
• Pony AI CEO James Peng on Hong Kong Listing
• Bank of America outlines plans for earnings growth and AI in first investors day in years
• AI executives rebuff questions about valuations
• We're buying the recent slide in a hot stock tied to powering AI data centers
• Foxconn expects 4Q25 growth as AI servers, ICT products drive demand
• Live: Complete Coverage of SoundHound AI (SOUN) Q3 Earnings
• First cracks appear in AI stocks