SNAP Stock Falls For Second Day After Costly AR Glasses Launch: Analyst Can't See Demand Clearly But Spots 'Patent Value' At Minimum

• SNAP stock shed 17% in the last two trading sessions, following the launch of Specs.
• Analysts praised the hardware and tech capabilities of the AR glasses, with B. Riley saying that they offer “patent value."
• Stocktwits sentiment for SNAP remained ‘extremely bullish.’

Snap Inc. stock edged higher in overnight trading ahead of Thursday, following a steep two-session selloff triggered by the launch of its long-awaited augmented reality (AR) glasses. 

While consumers and analysts have largely praised the device’s technological capabilities, many view the glasses as bulky and prohibitively expensive, raising doubts about whether they can achieve the mainstream appeal of Meta’s Ray-Ban smart glasses.

SNAP stock shed 17% over Tuesday and Wednesday to a three-month low, before rising 1.7% in the overnight session. 

Analysts, Fans Give Specs A Thumbs Down

B. Riley said in an investor note that the “Specs” launch is a positive medium-term development as it complements Snap’s core social platform and its position in next-generation human-computer interaction. However, it might remain a niche product until future interactions and cost reductions potentially drive broader traction. The research firm maintained its ‘Buy’ rating and $10 price target on SNAP stock, implying a 112% gain from the last close.

Benchmark analysts said the Specs hardware appears more sophisticated than the standard AI glasses on the market, but the glasses are also twice as heavy, three times more expensive and have a shorter battery life than their competitors, according to a Dow Jones report.

The launch "launches a debate," as Snap co-founders feel the augmented reality glasses will be the next big wave of computing against a "reasonable skeptical stance," Rosenblatt said in its investor note. "Specs may or may not work as a business, but expectations are low, and at a minimum, there could be patent value," the research firm said.

Rosenblatt maintained a ‘Neutral’ rating and a $6.40 price target on SNAP, implying a 36% upside.

Sentiment on X toward the Specs glasses was predominantly negative, according to user posts, with many mocking the high price and bulky design.

“You’re telling me there’s not a single person at Snap brave enough to tell Evan Spiegel that these glasses look atrocious? Looks like 3D glasses at an IMAX theater,” a health-tech startup founder posted on X. 

How Specs Compare To Other Smart Glasses?

Snap’s Specs are priced at $2,195 and would ship “this fall” in the U.S., UK, and France. The company made a big entry into smart glasses with its original Spectacles in 2016, and has been toiling away on nonpublic AR versions of Spectacles over the past few years. 

The top-end Meta Ray-Ban Display is priced at $799, while Apple’s Vision Pro starts at $3,499. IDC estimates the smart glasses market will grow at an annual rate of more than 29% to nearly 30 million units by 2029, reaching $10.8 billion in value. By comparison, well over 1 billion smartphones are shipped annually.

Retail View On SNAP

On Stocktwits, the retail sentiment for SNAP dropped but remained in the ‘extremely bullish’ zone, while 24% message volume declined by 18%. SNAP stock is down 41% in 2026 and 94% from its record high in September 2021.

“The Specs is positioned as a premium product for developers and early adopters rather than a mainstream consumer device. The problem is Evan Spiegel tries to promote them as a mainstream consumer device, which they absolutely are not. Maybe next gen but certainly not this one,” said a trader.

“$SNAP Wonder if Evan has his spectacles on to see this piece of s*** stock crash today?” joked a trader. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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