Snap shares fell 10% after the announcement of AR glasses priced at $2,195: what's behind the drop
On Tuesday, Snap (SNAP) shares fell 9.72%, dropping to $5.16. The reason was the presentation of the company's first commercial augmented reality (AR) glasses, which Snap CEO Evan Spiegel priced at $2,195. The market reacted instantly and negatively: investors took a wait-and-see approach, while retail traders began locking in profits.
Design and Price: The Main Stumbling Blocks
The device, named Specs, was unveiled at the Augmented World Expo (AWE) 2026 in California. It is a fully standalone gadget that projects digital content onto the real world. It includes built-in programs for navigation, translation, and an AI assistant. Interchangeable prescription lenses allow multiple people to use the glasses.
However, the design sparked a wave of criticism. Social media users compared the bulky frame to 3D glasses from movie theaters and even night vision devices. Skepticism also surrounds the comfort of everyday wear. At a price of $2,195, Specs is three times more expensive than Meta Ray-Ban smart glasses, which sell for under $700. Meta accounts for about 76% of global shipments in this segment, and its developer ecosystem is significantly more powerful than Snap's.
For pre-orders, buyers need to pay a refundable deposit of $200. First shipments are scheduled for fall 2026 in the US, UK, and France. Initial buyers will be developers and enthusiasts, confirming the niche nature of the product.
Competition and Pressure on Shares
Snap is entering a saturated market already dominated by Apple and Google, which are working on their own AR devices. The company recently shut down its VR metaverse division to focus on smart glasses and AI-based hardware — competition has become a priority. Nevertheless, since the start of 2026, SNAP shares have fallen by 33%, and the decline continued after the announcement.
The share of retail investors in the stock market has dropped to its lowest level since the third quarter of 2024, reducing the base of speculative buyers that small-cap companies often rely on to support their stock price. Commenting on the situation, Spiegel noted that Specs only complement smartphones, not replace them, drawing a parallel to how mobile devices did not displace laptops.
Expert opinion. Snap has found itself trapped between a high price and market skepticism. The company has no room for error with a slow launch: if there is no mass demand from developers in the fall, shares will continue to fall. The crypto community, which closely monitors tech releases through platforms like Polymarket, has already recorded record trading volumes for this event. However, without real sales, any hype will remain mere speculation.