u/Count-to-3

I haven't seen anyone on here talk about this.

A few days ago, I was excited for SNAPs earning call, because if it was positive - it correlates well to Reddit and Reddit would probably go up 5% if Snap beat expectations and was up 10%+.

Now by no means has Snap really been dumped since their earnings.. Their earnings were okay, not great, not bad.

But there was a part of Snaps earning call that stood out, which initially was really bad even though earnings were good.

Snap announced their Perplexity 400M per year contract to implement Perplexity into Snap, was mutually terminated by both parties.

This news, obviously feeds into a narrative related to Reddit, of whether they can capitalize on any AI data licensing deals.

With Perplexity dropping out of Snap, that is a huge negative towards this narrative.

Well in the days since Snaps earnings, Reddit has now gone from $170 to $156. Not saying this is entirely the reason, as SaaS also had a big sell off 2 days ago, but when Saas went up yesterday, Reddit did not.

I think Spez in the earnings call hinted at something (that we all likely knew anyway, but provides small validation).

Quote Spez "Look, the world can see that Reddit's data is valuable, both our existing partners and potential ones."

I think they have active discussions going on with other LLMs other than Goog/Open Ai. Anthropic specifically, I would not be surprised at all if the lawsuit gets dropped and they sign Anthropic to a licensing deal.

Also he was asked about potential exclusivity deals and if they have been discussed / explored. To which Spez said, "no comment Rich". But the way he said No comment Rich, his tone was not so dismissive and more like "obviously we have Rich but I can't talk about it".