Snap (NASDAQ:SNAP) shares are down fractionally at the time of writing despite hailing AI as a great new way to improve ad quality.
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Snap CEO Evan Spiegel noted that its user base was totally behind Snap’s moves into artificial intelligence. With such a groundswell of support, that will help make advertising targeting even better. This will, in turn, make ads served up to end users more relevant and make advertisers happier with their results. With over 150 million people using Snap’s recently-released MyAI system and sending over 10 billion messages through it, the end result has been positive.
Indeed, this isn’t the first such case we’ve seen of AI improving advertising. Alphabet (NASDAQ:GOOG) recently brought out Product Studio, which could fundamentally alter images using AI tools. That helps improve the look and overall impact of advertising. But that wasn’t all; the Adthos Platform can create audio ads in their entirety using AI systems. That means from ad copy to voice effects, sound effects, and even background music all on one platform, making it a winner for radio, podcast, or even some video ads.
But it’s not just current investors who find Snap’s AI connections a cause for skepticism. Insider trading at Snap is looking downward too. Insiders sold around $2.8 million worth of Snap shares in the last three months. That’s sufficient to turn overall insider sentiment on Snap stock into “Very Negative” territory.