Snap Inc. (SNAP) shares surged 13.01% in after-hours trading on Wednesday, following the release of its better-than-expected third-quarter 2025 financial results. The company's strong performance, coupled with strategic announcements, has reinvigorated investor confidence in the social media giant.

Snap reported Q3 revenue of $1.51 billion, surpassing analysts' expectations of $1.49 billion. The company's Daily Active Users (DAUs) reached 477 million, slightly above the forecasted 476.3 million. Notably, Snap's Adjusted EBITDA of $182 million significantly outperformed estimates, demonstrating improved profitability despite a net loss of $103.5 million for the quarter. The company also provided an optimistic Q4 revenue outlook of $1.68-$1.71 billion, aligning with Wall Street projections.

Adding to the positive sentiment, Snap announced a groundbreaking $400 million partnership with AI startup Perplexity. This collaboration aims to integrate Perplexity's conversational search technology into Snapchat by early 2026, positioning Snap at the forefront of AI integration in social media platforms. Furthermore, the company authorized a substantial $500 million stock repurchase program, signaling confidence in its long-term prospects and commitment to enhancing shareholder value. These strategic moves, combined with the strong financial results, have contributed to the significant after-hours stock price increase, marking a turnaround for Snap, whose shares had previously underperformed the broader tech market year-to-date.