Snap shares plunged 9.7% after the presentation of AR glasses priced at $2,195: what's wrong with the new product
On Tuesday, Snap Inc. (SNAP) shares plummeted by 9.72%, dropping to $5.16. The reason for this sharp decline was the presentation of the first commercial augmented reality (AR) glasses called SPECS. Company CEO Evan Spiegel priced the new product at $2,195, which immediately triggered a negative market reaction.
Presentation at AWE 2026 and Pre-Order Launch
The gadget was unveiled at the Augmented World Expo (AWE) 2026 in California. On the same day, pre-orders began with a refundable deposit of $200. The first shipments are scheduled for the fall of this year, with availability limited to the US, UK, and France. It is expected that the first buyers will be developers and enthusiasts, rather than the mass consumer.
Design Under Fire, Investors on Hold
The SPECS glasses project digital content directly onto the real world and operate fully autonomously—without needing to connect to a smartphone. Spiegel positions the device as a full-fledged computing platform with pre-installed apps 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, social media users criticized the new product's appearance, comparing the bulky frame to 3D glasses from movie theaters and even to eclipse-viewing devices. Many doubt the glasses' comfort for everyday wear. Investors have also taken a wait-and-see approach: the high price has caused caution even before real sales data emerges.
Saturated Market, Intense Competition
The $2,195 price tag is more than three times 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 robust than Snap's. Apple and Google, both actively working on their own AR devices, add further pressure.
Notably, Snap recently shut down its VR metaverse division to focus on smart glasses and AI-based hardware. However, the share of retail investors in the stock market has fallen to its lowest since the third quarter of 2024, shrinking the base of speculative buyers that small-cap companies often rely on to support their stock price.
Spiegel noted that SPECS only complement smartphones, not replace them, drawing an analogy that mobile devices did not eliminate laptops. Nevertheless, SNAP shares have fallen 33% since the start of the year, and the decline continued on Tuesday. Forecasts highlight increased risks for technology companies in 2026, leaving Snap with no room for error in a slow launch.
My expert opinion: Snap is trying to carve out a niche where the price clearly does not match mass market expectations. At this cost and with a controversial design, the product's success will depend solely on developer interest and the creation of killer apps. Without that, SPECS risks repeating the fate of Google Glass—becoming an interesting but niche toy.