Snap Inc. announced AR glasses for $2195: the market reacted with a 10% drop in shares.
On Tuesday, Snap Inc. (SNAP) shares plummeted 9.72%, dropping to $5.16. The reason for this sharp decline was the presentation of the company's first commercial augmented reality (AR) glasses — SPECS. Snap CEO Evan Spiegel priced the new device at $2,195, sparking a wave of criticism and caution among investors.
The presentation took place at the Augmented World Expo (AWE) 2026 in California. Pre-orders opened the same day with a refundable deposit of $200. First shipments are scheduled for fall 2026. Initial sales are limited to the US, UK, and France. According to Snap, the first owners of the gadget will be developers and enthusiasts.
Design Under Fire: Investors Take a Wait-and-See Approach
The SPECS glasses project digital content directly onto the real world and operate fully autonomously, without needing a smartphone. Spiegel called the device a full-fledged computing platform with programs for the internet, navigation, and translation, as well as a built-in AI assistant. Interchangeable prescription lenses allow multiple people to use the same glasses.
However, the new product's appearance has faced harsh criticism on social media. Users compare the bulky frame to 3D glasses from movie theaters and eclipse viewing devices. The main question is how comfortable such glasses are for everyday wear.
Other premium products showed similar dynamics in 2026. The high price causes investor caution even before data on actual sales emerges. Interestingly, the news extended far beyond the stock market — the crypto community was particularly active. Prediction platforms like Polymarket recorded record trading volumes in 2026, closely monitoring technology releases.
Snap Enters a Crowded Market with an Expensive Device
The $2,195 price is triple the cost of Meta Ray-Ban smart glasses, which sell for under $700. Meta accounts for about 76% of all global smart glasses shipments, and its developer ecosystem is far more powerful. Snap recently shut down its VR metaverse division to focus on smart glasses and AI-based hardware — competition has become a priority. Apple and Google are also working on their own devices, increasing pressure on Snap from players with far greater resources.
The share of retail investors in Snap's stock market has dropped to its lowest since the third quarter of 2024, reducing the base of speculative buyers that small-cap companies like SNAP often rely on to support their price. Since the start of the year, SNAP shares have fallen 33%, and the decline continued on Tuesday. Forecasts note elevated risks for technology companies in 2026. Snap has no room for error with a slow launch.
Expert Opinion: Snap is making a bold but extremely risky bet. The high price and niche design risk alienating the mass consumer. The success of SPECS will depend not so much on the technology as on Snap's ability to create a compelling ecosystem of apps and content that can compete with giants like Meta. Fall will reveal whether developer and enthusiast interest was sufficient to generate mass demand.