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LONG BEACH, Calif. - Snap Inc. (NYSE: SNAP), currently trading at $8.76 and showing a 14.91% revenue growth over the last twelve months, announced plans to release a new version of its augmented reality glasses, called Specs, to the public in 2026. The announcement was made Tuesday at the Augmented World Expo 2025. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, despite facing recent market challenges with its stock down 21.08% year-to-date.
The company, with a market capitalization of $14.62 billion, described Specs as "an ultra-powerful wearable computer integrated into a lightweight pair of glasses" with see-through lenses that overlay digital content onto the physical world. The device is being positioned as a personal computer that incorporates artificial intelligence and augmented reality technology. InvestingPro data shows that while Snap maintains strong liquidity with current assets exceeding short-term obligations, the company is focusing on innovation to drive future growth.
"We believe the time is right for a revolution in computing that naturally integrates our digital experiences with the physical world," said Evan Spiegel, co-founder and CEO of Snap Inc., according to the press release.
Snap also announced updates to its operating system, Snap OS, including integrations with OpenAI and Gemini on Google Cloud, allowing developers to create AI-powered applications. Additional features include a Depth Module API, Automated Speech Recognition API supporting over 40 languages, and Snap3D API for generating 3D objects.
The company introduced new developer tools specifically for location-based experiences, including a Fleet Management app, Guided Mode, and Guided Navigation for creating AR-guided tours. Snap also announced an upcoming partnership with Niantic Spatial to implement their Visual Positioning System and plans to add WebXR support in the browser.
Snap released its fifth generation of Spectacles for developers in 2024, which has enabled developers to create applications ranging from travel assistance and musical instruction to gaming and cooking guidance.
The company reports that users engage with AR Lenses in the Snapchat camera 8 billion times daily, and more than 400,000 developers have created over 4 million Lenses using Snap’s augmented reality tools. With analysts expecting profitability this year and net income growth, as revealed by InvestingPro, Snap’s strategic focus on AR technology could be pivotal for its financial future. For deeper insights into Snap’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering over 1,400 top US stocks.
In other recent news, Snap Inc. reported first-quarter results that exceeded Wall Street’s expectations despite a challenging macroeconomic environment. Revenue growth continued, though there was a lack of clarity regarding the contribution of advertising revenue versus that from the Snapchat+ subscription service. Stifel analysts maintained a Hold rating on Snap stock with a price target of $8.00, expressing caution due to limited near-term visibility and potential advertising budget reductions. Loop Capital Markets also adjusted their outlook for Snap, lowering the price target to $12.00 from $16.00 but maintaining a Buy rating, highlighting Snap’s substantial user base and revenue growth opportunities.
Benchmark reiterated its Hold rating on Snap, noting significant improvements in the company’s advertising technology, which now accounts for 75% of Snap’s revenue. These advancements have led to a 60% increase in active advertisers, particularly in e-commerce and retail sectors. Meanwhile, TikTok, owned by ByteDance, faces scrutiny from the European Commission for potentially breaching the EU’s Digital Services Act regarding advertisement information. Additionally, TikTok has been fined $600 million by the EU regulator over data protection concerns, with demands to halt data transfers to China unless compliance standards are met.
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