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September 6, 2025 3 mins
Snapchat BioSnap a weekly updated Biography.

This week Snapchat has been grabbing headlines with its rollout of the Imagine Lens, a new tool for Snapchat Plus Platinum and Lens Plus subscribers that leverages generative AI for creating and editing images from simple text prompts. According to TechCrunch, this is Snapchat’s first open prompt image-generation Lens, allowing users to transform themselves into comics, caricatures, or even skydivers on a whim. Snapchat’s push into AI underscores its effort to keep leading the AR pack, and it's already making some noise on social media with users sharing quirky AI-generated snaps. Meanwhile, behind the scenes, Snap continues pushing accessibility for AR creators, following earlier launches of Lens Studio’s app and web tool, as well as its recent foray into generative AI video Lenses.

However, if you peek behind the curtain of playful digital self-portraits, a different story is unfolding in the boardroom and stock market. According to AINvest, Snap’s General Counsel Michael O’Sullivan will be leaving by year-end, a move which—despite no cited disagreements—comes amid headwinds from slowing user growth and declining global downloads. In Q3 growth dropped to 2.3 percent from 3.9, and worldwide downloads are down by more than 12 percent from last year, echoing operational and engagement difficulties that analysts say still dog the company. Stock volatility is reflecting these challenges: On September 4, Snap closed down 2.21 percent, with trading volume dropping sharply. Analyst sentiment is split, with some upgrades tempered by lowered price targets.

Even more dramatic are legal rumblings after Snap’s August 5 earnings announcement. As highlighted by both ClaimsFiler and Hagens Berman, a string of class action lawsuits has been filed, asserting that Snap and its executives failed to promptly disclose operational missteps and an ad platform adjustment that gutted auction prices for some advertisers. The resulting ad revenue slowdown saw growth plummet from 9 percent in Q1 to just 1 percent in April. The fallout? Shares dropped over 17 percent in a single day, and investors who suffered losses between April 29 and August 5 now have until October 20 to seek lead plaintiff status. Law firms are calling on whistleblowers to come forward about any internal knowledge related to the platform changes.

Business-wise, Snap hasn’t just been on the defensive. Net Influencer reports Snapchat introduced the App Power Pack, a suite of tools meant to supercharge performance marketing and app downloads while supporting privacy-sensitive attribution. Sponsored Snaps, now the company’s largest U.S. single-day reach product, are getting marketers’ attention, especially with app install metrics jumping by a reported 25 percent in early trials.

From AI-driven selfies to high-stakes legal drama, Snapchat is living its best double life—showcasing innovation while navigating the realities of Wall Street and mounting shareholder litigation.

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Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
This week's Snapchat has been grabbing headlines with its rollout
of the Imagined Lens, a new tool for Snapchat Plus
Platymum and Lens Plus subscribers that leverages generative AI for
creating and editing images from simple text prompts. According to
tech Crunch, this is Snapchat's first open prompt image generation lens,
allowing users to transform themselves into comics, caricatures, or even

(00:23):
skydivers on a whim. Snapchat's push into AI underscores its
effort to keep leading the AR pack, and it's already
making some noise on social media, with users sharing quirky
AI generated snaps. Meanwhile, behind the scenes, snap continues pushing
accessibility for AR creators, following earlier launches of Lens Studios,
app and web tool, as well as its recent forey

(00:45):
into generative AI video lenses. However, if you peak behind
the curtain of playful digital self portraits, a different story
is unfolding in the boardroom and stock market. According to
a invest Snap's general counsel mechel O'Sullivan will be leave
by year end, a move which despite no cited disagreements,
comes amid headwinds from slowing user growth and declining global downloads.

(01:08):
In quarter three, growth drop to two point three percent
from three point nine and worldwide downloads are down by
more than twelve percent from last year, echoing operational and
engagement difficulties that analysts say still dog the company. Stock
volatility is reflecting these challenges. On September fourth, Snap closed
down two point two one percent, with trading volume dropping sharply.

(01:32):
Analyst's sentiment is split, with some upgrades tempered by lowered
price targets. Even more dramatic or legal rumblings after Snap's
August fifth earnings announcement, as highlighted by both Claims Filer
and hagens Berman, a string of class action lawsuits has
been filed asserting that Snap and its executives failed to
promptly disclose operational missteps and an ad platform adjustment that

(01:55):
gutted auction prices for some advertisers. The resulting ad revenue
slow down saw growth plummet from nine percent in Q
one to just one percent in April. The fallout shares
dropped over seventeen percent in a single day, and investors
who suffered losses between April twenty ninth and August fifth
now have until October twentieth to seek lead plaintiff status.

(02:16):
Law firms are calling on wristleblowers to come forward about
any internal knowledge related to the platform should lie business wise.
Snap hasn't just been on the defensive net influencer reports.
Snapchat introduced the app power Pack, a suite of tools
meant to supercharge performance marketing and app downloads while supporting

(02:37):
privacy sensitive attribution. Sponsored snaps, now the company's largest US
single day reach product, are getting marketers attention, especially with
appenstall metrics jumping by a reported twenty five percent in
early trials. From AI driven selfies to high stakes legal drama,
Snapchat is living its best double life, showcasing innovation while

(02:59):
navigating the re of Wall Street and mounting shareholder litigation.
And that is it for to day. Make sure you
hit the subscribe button and never miss an update on Snapchat.
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