Snap Inc. introduced AR glasses for $2,195: SNAP shares plummeted during the presentation
On Tuesday, Snap (SNAP) shares plunged 9.72% to $5.16, immediately after the presentation of its first commercial augmented reality glasses called Specs. Company CEO Evan Spiegel priced the new product at $2,195 — three times more expensive than its closest competitor from Meta.
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, with geography limited to the US, UK, and France. The main buyers will be developers and enthusiasts.
Specs is a fully autonomous device that does not require a connection to a smartphone. It projects digital content directly onto the real world. Inside is a full-fledged computing platform with apps for the internet, navigation, and translation, as well as a built-in AI assistant. Interchangeable prescription lenses allow multiple people to use the glasses.
However, the gadget's appearance has sparked a wave of criticism. Social media users compare the bulky frame to 3D glasses from movie theaters and even to eclipse viewing devices. The price also raises skepticism — $2,195 versus less than $700 for Meta Ray-Ban, which holds 76% of the global smart glasses market. Snap's developer ecosystem is significantly weaker than Meta's.
Unsurprisingly, investors have taken a wait-and-see approach. The share of retail investors in the SNAP stock market has fallen to its lowest level since the third quarter of 2024, reducing the base of speculative buyers. Since the beginning of the year, Snap shares have lost 33%, and pressure from tech giants — Apple and Google, which are also developing their own AR devices — is only intensifying.
Spiegel is trying to mitigate risks by stating that Specs only complement smartphones, not replace them. "Almost 20 years have passed since the first iPhone was released — now people are ready to take a fresh look at computing," he noted. But amid fierce competition and a high price, Snap has no room for error.
My analysis: The AR glasses market is oversaturated, and Snap is entering it with a device that does not offer fundamentally new features compared to cheaper alternatives. The success of Specs will depend not on mass demand, but on developer loyalty and niche use cases. If we do not see a surge of interest from professionals this fall, SNAP shares risk continuing their decline.