Key insights
- Snap's stock initially rose on news of a Qualcomm partnership for AR glasses, reversing gains to trade lower after leadership reaffirmed commitment to the project despite activist pressure to shelve it. This suggests investor skepticism about the profitability of Snap's AR glasses strategy, creating a slightly negative influence on the stock.
About a week ago SNAP soared 15 % on news that Irenic activist group encouraged SNAP leadership to completely shelf Specs AR glasses.
Today, SNAP leadership directly opposed that idea as they announced a multi year partnership with Qualcomm for their upcoming Specs AR glasses. Initially, the stock actually went up by 5 % but it very quickly turned red and is currently trading 3 % in the red for the day.
What do you think about these Specs AR glasses? Are they finally going to be a profitable product or is it a bad idea that Spiegel keeps committing to them?