12 Best AI Stocks to Invest in According to Reddit

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3. Snap Inc. (NYSE:SNAP)

Number of Hedge Fund Holders: 44

Snap Inc. (NYSE:SNAP) is a technology company that uses AI to enhance visual communication and advertising. Its platform uses AI for features like AR ads, personalized content delivery, and the development of innovative camera and messaging experiences. With a focus on visual storytelling and user engagement, it’s pushing the boundaries of AI-driven social media.

The company’s AI focus is on its advertising platform and AR experiences. AI-powered ad optimization is the key to this strategic growth, with app-based purchase revenue up over 70% year-over-year and a 6x increase in leads generated. The company is also testing Smart Budget Optimization for automated campaigns. AI enhances AR through Lens Studio, with AI-powered lenses. Instances of these include the me-in-the-60s lens with 900 million views and the Easy Lens with 300 million lens engagements.

Snap Inc. (NYSE:SNAP) is working on AI that can create sharp images directly on smartphones. It has also introduced new AI-powered ad formats, Sponsored Snaps and Promoted Places, which are performing well. For example, Sponsored Snaps have been seen over 50 million times in the US. In Q4 2024, the company’s revenue was $1.56 billion, which was up 14% year-over-year. This was driven by direct response (DR) ad revenue, which was up 14%.

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