13 Best Artificial Intelligence Stocks Under $50 to Buy Now

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2. Snap Inc. (NYSE:SNAP)

Share Price as of May 12: $8.25

Number of Hedge Fund Holders: 44

Snap Inc. (NYSE:SNAP) offers Snapchat, which enables people to communicate visually through short videos and images. The application offers various AI-powered lenses, chatbots, and personalized content to improve the user experience. It also provides Snapchat+, which is a subscription service that provides subscribers access to exclusive, experimental, and pre-release features.

In Q1 2025, the company’s ad revenue grew by 9% year-over-year to $1.211 billion. Direct response advertising increased by 14% to make up 75% of the total ad revenue. This growth is attributed to advancements in Snap’s ML capabilities, enhanced use of privacy-safe signals, and optimized ad formats. Now the company’s full-year guidance for other costs of revenue remains at 19% to 20% of revenue.

On April 30, Truist kept a Hold rating on Snap while lowering its price target from $14 to $11. The firm noted that growth in Direct Response advertising and Snapchat+ subscriptions was slightly offset by continued weakness in Brand advertising. Truist also added that changes to Snap’s ad products are attracting more advertisers. However, macroeconomic uncertainty due to tariffs is negatively impacting overall advertising demand.

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