🔴 SNAP drops 4.5% despite Q1 earnings beat, weighed down by weak guidance and cancelled AI deal

Shares of Snap are trading at $5.83 (-4.5%) despite the company reporting a beat on Q1 revenue and earnings. The stock is under pressure due to significant negative catalysts announced alongside the results.

• Weak Guidance: Management issued a cautious financial outlook for the second quarter, which disappointed investors.
• AI Partnership Terminated: Snap announced that its previously anticipated ~$400 million AI partnership with Perplexity has been 'amicably ended', removing an expected near-term catalyst.
• Q1 Results: The decline overshadows strong Q1 results, where revenue grew 12% to $1.53 billion and Daily Active Users rose 5% to 483 million.