Vistra, NetraMark, Snap – AI stocks with potential

Snap Inc. – Mega deal creates a spirit of optimism

While most AI stocks traded deep in the red last week, one of the pioneers in the field of visual communication and augmented reality made significant gains. Snap Inc. rose roughly 12% over the week, driven by stronger-than-expected quarterly results and the announcement of a strategic AI partnership.

In the third quarter, Snap sent a clear signal of strength. Revenue rose 10% to USD 1.51 billion, exceeding expectations, as did adjusted earnings per share of 10 cents, twice as high as forecast. EBITDA also exceeded estimates. For the current quarter, Snap expects revenue of between USD 1.68 and 1.71 billion, again above consensus.

In addition, the advertising business recovered. Direct response campaigns increased by 8%, and daily active users rose by 8% to 477 million. Nevertheless, Snap warns of possible declines in the fourth quarter due to stricter age verification and new social media rules in Australia, among other places.

A USD 400 million deal with AI start-up Perplexity is causing quite a stir. Its AI-powered search engine will be integrated directly into Snapchat in the future, providing users with verifiable, ad-free answers within the app. CEO Evan Spiegel emphasizes that the goal is "stronger user engagement."

"Perplexity aims to increase visibility among younger users, while Snap needs an AI partner to keep users within its own ecosystem," explains analyst Max Willens of Emarketer. This repositioning puts Snap in more direct competition with Meta and TikTok, which continue to dominate the digital advertising landscape.

NetraMark – New deal strengthens market position

Canadian AI company NetraMark Holdings continues to cause a stir in the pharmaceutical industry with its innovative NetraAI platform. The technology leverages explainable artificial intelligence to analyze complex clinical datasets and identify subpopulations of patients who respond differently to drugs or placebos. This can significantly improve the success rates of clinical trials and enable the more targeted development of new active ingredients. Unlike conventional AI systems, NetraAI performs efficiently even with small, heterogeneous data sets and delivers scientifically verifiable results that are transparent to researchers, authorities, and clinicians alike.

With this approach, NetraMark is driving the shift toward precision-based drug development. CEO George Achilleos explains: "The goal of NetraAI is to deliver clear, clinically actionable insights so that sponsors can understand exactly who benefits from a treatment and why."

Another milestone is the signing of a new contract with a leading international biopharmaceutical company. NetraMark's platform will be deployed in a Phase 3 clinical trial for a novel psychotropic drug. Its AI will assist in determining side effects and response rates with greater accuracy, which is a decisive advantage for both regulatory authorities and market positioning.

The deal highlights the growing acceptance of NetraMark's technology within the global pharmaceutical industry. Following successful projects in neuroscience, oncology, and pain research, this collaboration further strengthens the Company's position as a leading provider of explainable AI solutions. It also demonstrates how data intelligence can make the development of new drugs faster, safer, and more efficient.

The Company's current market capitalization stands at just under CAD 110 million.

Vistra – Disappointment despite the boom

Texas-based energy provider Vistra Corp. is one of the secret beneficiaries of the global AI boom. As data centers consume even more electricity, demand for reliable, large-scale energy supplies continues to rise, especially from renewable and nuclear sources, areas in which Vistra is increasingly focusing. With new generation capacities and long-term supply contracts, the Company is positioning itself as a key energy partner for the digital future.

Against this backdrop, the publication of the third-quarter figures was all the more disappointing. Vistra reported GAAP net income of USD 652 million and adjusted EBITDA from continuing operations of USD 1.58 billion. Revenue amounted to USD 4.97 billion, representing a decline of 20.9% compared to the previous year. Analysts had expected an average of around USD 6.18 billion. Non-GAAP earnings per share of USD 0.55 also fell well short of estimates of USD 1.40.

Management responded by adjusting its forecast for 2025: Adjusted EBITDA is now expected to be between USD 5.7 billion and USD 5.9 billion, significantly less than previously expected.

Despite the short-term setback, Vistra remains strategically well-positioned. The Company continues to advance the expansion of its low-carbon energy sources in order to continue to benefit from the global AI boom.

Are AI stocks facing a correction? According to many market observers, a normalization of valuations, especially for large players such as Nvidia and Palantir, is now inevitable. Snap was able to buck the negative trend with strong quarterly results, while NetraMark announced a strategic milestone. Despite the AI boom, Vistra had to revise its forecasts downward.