SpaceX IPO: Opportunity? Or the Ultimate Hype Trade?Snap-On NYSE: SNA reported higher second-quarter sales and earnings, with management pointing to strength in its Commercial & Industrial business and continued demand from vehicle repair technicians despite what executives described as a highly uncertain operating environment.
Chief Executive Officer Nick Pinchuk said the quarter showed the company’s ability to execute amid “Ukraine, inflation, fluctuating tariffs, restructured supply chains” and tensions involving Iran. He said Snap-on benefited from long-running market trends, including the rising complexity of vehicles, an aging vehicle fleet, demand for precision and customization in critical industries, and the increasing importance of technology and proprietary software.
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Industrial Buybacks: Top Homebuilding Supplier Leads Buyback IncreasesNet sales rose 4.7% to $1.235 billion, including a 3% organic gain, $11.5 million from the recent acquisitions of Hi-Force Hydraulic Tools and Diesel Laptops, and $8.7 million from favorable foreign currency translation. Net earnings were $260.6 million, or $4.96 per diluted share, compared with $250.3 million, or $4.72 per diluted share, a year earlier.
Consolidated gross margin improved to 51.4% from 50.5%. Chief Financial Officer Aldo Pagliari said the 90-basis-point increase primarily reflected higher volume and savings from the company’s rapid continuous improvement initiatives. Operating earnings before financial services were $268.9 million, compared with $259.1 million a year earlier, while the operating margin before financial services edged down to 21.8% from 22.0%.
Commercial & Industrial Drives Growth MarketBeat Week in Review – 10/20 - 10/24The Commercial & Industrial, or C&I, segment posted the strongest performance among Snap-on’s operating groups. Sales rose to $395.8 million, up $48 million from the prior year, including an 11% organic gain, $6.8 million from the Hi-Force acquisition and $2.5 million from currency translation.
Pagliari said the organic improvement reflected gains in Asia-Pacific and European handheld tools businesses, as well as double-digit increases in specialty torque and power tools. Sales to critical industries rose mid-single digits, led by aviation activity in the U.S. and internationally, along with gains in heavy-duty fleets and technical education. Shipments for military applications remained “attenuated,” he said.
C&I operating earnings increased to $66.5 million from $46.9 million, and operating margin expanded to 16.8% from 13.5%. Pinchuk called the margin an all-time record for the segment and said demand was strong for custom kits, precision torque tools and power tools.
During the question-and-answer session, Pinchuk said the C&I gross margin improvement was not primarily due to mix, noting that the most profitable critical industries business grew below the segment average. He instead cited better performance in several product areas, including power tools and torque, as well as improved absorption in Asia-Pacific and Europe.
Tools Group Gains Despite Weak Tool Storage The Snap-on Tools Group reported sales of $508.8 million, up from $491.0 million a year earlier, reflecting a 3% organic sales gain and $2.9 million of favorable currency translation. Pagliari said the organic increase came from low double-digit gains in both U.S. and international operations.
Management said activity was helped by higher sales of featured new items, including power tools, air conditioning service products and diagnostics. Pinchuk said the company continued to pivot toward “quicker payback” products as technicians remain reluctant to take on longer-term obligations for larger purchases such as tool storage.
Operating earnings in the Tools Group declined to $115.1 million from $116.7 million, and operating margin fell to 22.6% from 23.8%. Pagliari said gross margin slipped 30 basis points to 48.0%, primarily due to product mix, partially offset by savings from improvement initiatives. Operating expenses rose due to higher personnel, freight and other costs.
In response to an analyst question about originations and higher-ticket items, Pinchuk said tool storage was down while diagnostics was up, with storage representing a larger portion of the financing mix. He said the first quarter’s stronger tool storage performance had been helped by a limited-edition product tied to the U.S. semiquincentennial.
Repair Systems & Information Mixed as OEM Dealers Slow Repair Systems & Information, or RS&I, reported sales of $480.3 million, compared with $468.6 million a year earlier. The increase included $3.2 million of organic growth, $4.7 million from the Diesel Laptops acquisition and $3.8 million from currency translation.
Pagliari said low single-digit increases in undercar equipment and in diagnostics and repair information products sold to independent repair shop owners and managers were mostly offset by weaker activity with OEM dealerships. Pinchuk said independent shops continued to invest in products that expand their capabilities, while OEM dealers showed hesitancy on capital expenditures as automakers slowed program launches.
RS&I operating earnings fell to $115.1 million from $119.8 million, and operating margin declined to 24.0% from 25.6%. Pagliari cited higher sales of lower-margin products, higher personnel and other costs, expanded technology investments and a modest impact from the Diesel Laptops acquisition.
Pinchuk said Snap-on is investing in its proprietary database and large language model efforts, which he said the company expects to benefit from over time. He also highlighted the launch of the Apollo handheld diagnostic unit, describing it as an entry point for technicians seeking intelligent diagnostics at a moderate cost.
Financial Services Revenue Slips Financial services revenue declined to $99.7 million from $101.7 million a year earlier, primarily due to lower interest income from a smaller average finance receivable portfolio. Financial services operating earnings were $67.5 million, compared with $68.2 million.
Total loan originations were $281.0 million, down $12.0 million, or 4.1%, from the prior year. Extended credit loan originations were $237.6 million, down 2.4%. Pagliari said the U.S. 60-day-plus delinquency rate for extended credit receivables was 1.7%, down 10 basis points from the prior year and 20 basis points from the previous quarter.
Outlook and Capital Allocation Snap-on generated $271.5 million in cash from operating activities during the quarter, up from $237.2 million a year earlier. Investing activities included $154.0 million for acquisitions, net of cash acquired, consisting of $99.1 million for Diesel Laptops and $54.9 million for Hi-Force. Capital expenditures were $23.1 million.
The company paid $126.4 million in dividends and repurchased 241,000 shares for $91.4 million. Pagliari said Snap-on had $185.5 million remaining under existing share repurchase authorizations at quarter-end.
For the remainder of 2026, Pagliari said corporate costs are expected to approximate $28 million in each of the next two quarters. The company expects full-year capital expenditures of about $100 million and an effective tax rate of approximately 22%.
Pinchuk said Snap-on remains confident in its ability to sustain progress through the rest of the year, citing resilience in vehicle repair and critical industries. “The results taken individually or collectively are marked by momentum, strength, and continuing green shoots,” he said.
About Snap-On (NYSE:SNA)Snap‑On Incorporated NYSE: SNA is a designer, manufacturer and marketer of tools, diagnostic equipment, repair information and shop equipment for professional users. The company's product range includes hand and power tools, tool storage and cabinets, diagnostic scan tools and software, shop equipment such as lifts and tire changers, and specialized specialty tools for automotive, aviation, marine and industrial applications. Snap‑On also offers information and workflow solutions that combine diagnostic data, repair procedures and parts information to support professional technicians.
Founded in 1920 and headquartered in Kenosha, Wisconsin, Snap‑On has established a long history in the professional tools market.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Snap Inc (NYSE:SNAP) is expected to remain under pressure to demonstrate stronger advertising revenue growth when it reports second-quarter earnings, with Jefferies saying the company's ads business continues to be the key issue despite expectations for improving overall revenue growth.
The brokerage reiterated its ‘Buy’ rating on Snap while lowering its price target to $5.50 from $8, writing that although it remains positive on the company's engagement scale and long-term monetization opportunity, "the core issue remains ad rev growth, which has yet to show meaningful improvement."
Snap shares traded hands at about $4.40 on Thursday afternoon, down about 45% so far this year.
Jefferies expects Snap to report Q2 revenue growth of 14% year over year, in line with Wall Street estimates. The analysts wrote that advertising revenue should reaccelerate from 3% growth in the first quarter, helped by an easier year-over-year comparison and guidance that had already incorporated a full quarter of Middle East-related headwinds.
The firm said revenue from Snap+ subscriptions and Memories products remains more difficult to forecast because of limited visibility, though it remains constructive on the recent momentum in those businesses.
For the third quarter, Jefferies wrote that the Street's forecast for 13% year-over-year revenue growth appears achievable, with potential upside from World Cup-related advertising spending and Memories Storage. The analysts noted that consensus implies quarter-over-quarter revenue growth consistent with seasonal trends over the past three years, while the expiration of the 12-month Memories Storage grace period in September could provide an additional boost.
Jefferies also identified daily active user growth as a swing factor, citing age verification requirements and other regulatory changes. While the firm sees limited revenue risk from those changes, it noted they could weigh on investor sentiment if engagement growth slows further.
On profitability, Jefferies expects Snap to reiterate its full-year cost guidance following its April restructuring, including operating expenses of about $2.75 billion, other cost of goods sold at 16% to 17% of revenue, and infrastructure costs of $1.6 billion to $1.65 billion.
While Jefferies remains constructive on Snap's longer-term monetization opportunity, it wrote that continued investment in Specs following a weak initial reception, along with the collapse of a partnership with Perplexity, has tempered expectations, leaving the company's advertising growth as the primary focus heading into earnings.
Snap Inc (NYSE:SNAP) is expected to remain under pressure to demonstrate stronger advertising revenue growth when it reports second-quarter earnings, with Jefferies saying the company's ads business continues to be the key issue despite expectations for improving overall revenue growth.
The brokerage reiterated its ‘Buy’ rating on Snap while lowering its price target to $5.50 from $8, writing that although it remains positive on the company's engagement scale and long-term monetization opportunity, "the core issue remains ad rev growth, which has yet to show meaningful improvement."
Snap shares traded hands at about $4.40 on Thursday afternoon, down about 45% so far this year.
Jefferies expects Snap to report Q2 revenue growth of 14% year over year, in line with Wall Street estimates. The analysts wrote that advertising revenue should reaccelerate from 3% growth in the first quarter, helped by an easier year-over-year comparison and guidance that had already incorporated a full quarter of Middle East-related headwinds.
The firm said revenue from Snap+ subscriptions and Memories products remains more difficult to forecast because of limited visibility, though it remains constructive on the recent momentum in those businesses.
For the third quarter, Jefferies wrote that the Street's forecast for 13% year-over-year revenue growth appears achievable, with potential upside from World Cup-related advertising spending and Memories Storage. The analysts noted that consensus implies quarter-over-quarter revenue growth consistent with seasonal trends over the past three years, while the expiration of the 12-month Memories Storage grace period in September could provide an additional boost.
Jefferies also identified daily active user growth as a swing factor, citing age verification requirements and other regulatory changes. While the firm sees limited revenue risk from those changes, it noted they could weigh on investor sentiment if engagement growth slows further.
On profitability, Jefferies expects Snap to reiterate its full-year cost guidance following its April restructuring, including operating expenses of about $2.75 billion, other cost of goods sold at 16% to 17% of revenue, and infrastructure costs of $1.6 billion to $1.65 billion.
While Jefferies remains constructive on Snap's longer-term monetization opportunity, it wrote that continued investment in Specs following a weak initial reception, along with the collapse of a partnership with Perplexity, has tempered expectations, leaving the company's advertising growth as the primary focus heading into earnings.
In the latest trading session, Snap (SNAP - Free Report) closed at $4.47, marking a -1.97% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.14%. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.57%.
Shares of the company behind Snapchat have appreciated by 2.24% over the course of the past month, outperforming the Computer and Technology sector's loss of 4.82%, and the S&P 500's gain of 0.25%.
Market participants will be closely following the financial results of Snap in its upcoming release. The company plans to announce its earnings on August 3, 2026. The company is forecasted to report an EPS of $0.07, showcasing a 800% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.53 billion, indicating a 13.97% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $0.6 per share and a revenue of $6.7 billion, demonstrating changes of +81.82% and +12.89%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Snap. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 11.11% downward. Snap presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Snap is currently exchanging hands at a Forward P/E ratio of 7.65. Its industry sports an average Forward P/E of 19.55, so one might conclude that Snap is trading at a discount comparatively.
We can additionally observe that SNAP currently boasts a PEG ratio of 0.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.06.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 104, this industry ranks in the top 43% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Trevor Testwuide, Measured CEO, calls Snapchat one of marketing’s most overlooked growth platforms.
It’s true. Snapchat entered the social advertising landscape more than a decade ago. Yet, for most brands, the platform remains a secondary allocation or a reach play behind the platforms that usually dominate quarterly planning conversations.
Last May, Snapchat introduced new goal-based bidding capabilities and expanded formats for Sponsored Snaps, including Chat takeovers and creator-delivered placements, alongside broader AI-powered automation tools across ad delivery and budget optimization.
The changes had a major effect. Snapchat adoption among Measured customers increased 11.1 percent, while median incremental return on investment (iROAS) rose 36.2 percent.
“We’ve really been driving innovation across the industry,” said Adrian Mulryan, head of global agency and strategic accounts at Snapchat. “We’ve launched many products that can close the gap. There’s a range of products that can help marketers reach their goals.
The report demonstrates that Snapchat is a platform that can deliver results at scale, Mulryan said, adding, “Obviously, the study is specifically focused on retailers. We have a number of retailers on the platform, but I think we can always see more. I think this will highlight to the industry, agencies and brands that we rebuilt the ad platform.”
“Snapchat’s been undervalued for a number of years. A lot of the conversations we’ve had were really about demystifying what Snapchat is today,” said Mulryan. “We have a unique audience. If you look at the results and look at our audience, we believe it is unique.”
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Mulryan said that 92 percent Snapchat users include friends in their shopping journeys and 73 percent recommend brands and products to friends and family. “Our billion users are talking about purchases every day and recommending purchases every day,” he said.
Sonia Lapinsky, retail partner & managing director and head of Alix Partners fashion practice, said Snapchat can be “used very strategically, but retailers are looking at larger platforms, often assuming that’s where they’re going to get the bigger bang for the buck.”
“We’ve often been asked by retailers how they can access younger consumers,” Lapinsky said. “From our research, we found that teens are spending more time on Snapchat. They spend five hours a day on social in general and Snapchat ranks third, ahead of Instagram and Facebook. If you’re looking to reach a younger audience and capture these consumers earlier in their lifecycle, Snapchat is a good way to do that.”
Lapinsky, who said that Snapchat skews toward fashion, beauty and gaming, categories where peer discovery and recommendations tend to drive purchases, called the platform a social, family-friendly environment.
According to the survey by Measured, which looked across the 130 ecommerce brands in its portfolio, Snapchat accounts for just 5% of social ad spend yet delivers a median iROAS of $2.84, which is 19.3% higher than the blended incremental return generated by all social advertising for the same brands.
For brands that advertised on Snapchat, incremental return across search and social was 12.9 percent higher than for brands that didn’t invest in the platform. The increase is consequential because the brands studied allocated more than 63 percent of their advertising budgets to search and social.
Even modest improvements across channels that consume the majority of a budget can have an outsized impact on marketing efficiency.
“Globally you’ll have over $1 trillion dollars spent on media this year,” said Testwuide. “You still have so many brands that are spending $50 million, $75 million, hundreds of millions of dollars, leveraging these last touch metrics that do not accurately represent the contribution.”
“It seems like the industry is moving toward a stronger measurement, namely incrementality measurement,” said Testwuide. “It’s not just ecommerce. This is what we’re seeing now. I think there’s opportunity for Snap.”
“It’s a sliver of the spend but for folks that are using it, it can be a strong performer,” Testwuide said of Snapchat. “The other insight we identified is a halo effect, a meaningful halo effect. There’s a first order influence that the media has on the outcome, and then there’s a second order halo effect, which we featured in the research.”
These halo effects don’t appear in platform reporting. They become visible only when marketers measure incremental performance across the entire media mix, revealing Snapchat’s contribution beyond the revenue generated within the platform itself, Testwuide said.
“We’re trying to tell the market that the last click is updated,” said Mulryan, referring to the marketing attribution model that gives all the credit for a conversion to the final touchpoint. “We’ll demonstrate across the platform that there’s an incrementality there and that we can drive deeper results.”
Snap (SNAP - Free Report) ended the recent trading session at $4.76, demonstrating a +1.71% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.38%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.62%.
Shares of the company behind Snapchat witnessed a loss of 9.3% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.53%, and the S&P 500's gain of 1.61%.
The upcoming earnings release of Snap will be of great interest to investors. The company's earnings report is expected on August 3, 2026. It is anticipated that the company will report an EPS of $0.07, marking a 800% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.53 billion, indicating a 13.97% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.6 per share and revenue of $6.7 billion, indicating changes of +81.82% and +12.89%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Snap. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 13.82% fall in the Zacks Consensus EPS estimate. Currently, Snap is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Snap is presently trading at a Forward P/E ratio of 7.86. This represents a discount compared to its industry average Forward P/E of 19.89.
We can additionally observe that SNAP currently boasts a PEG ratio of 0.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.06 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of SNAP, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Snap (SNAP - Free Report) ended the recent trading session at $4.70, demonstrating a +1.51% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.81% for the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 1.3%.
Prior to today's trading, shares of the company behind Snapchat had lost 13.94% lagged the Computer and Technology sector's loss of 1.59% and the S&P 500's gain of 1.13%.
The investment community will be paying close attention to the earnings performance of Snap in its upcoming release. The company is expected to report EPS of $0.07, up 800% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, up 13.97% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.6 per share and revenue of $6.7 billion, which would represent changes of +81.82% and +12.89%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Snap. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 13.82% downward. Snap is currently a Zacks Rank #3 (Hold).
Digging into valuation, Snap currently has a Forward P/E ratio of 7.77. This denotes a discount relative to the industry average Forward P/E of 19.31.
One should further note that SNAP currently holds a PEG ratio of 0.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.05.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
SANTA MONICA, Calif.--(BUSINESS WIRE)--Snap Inc. (NYSE: SNAP) will hold its quarterly conference call to discuss second quarter 2026 financial results on Monday, August 3, 2026 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).A live webcast and replay of the conference call will be accessible on Snap Inc.'s Investor Relations website for at least 90 days at: http://investor.snap.com.About Snap Inc.Snap Inc. is a technology company. We believe the camera presents the greatest opportunity to imp.
Meta Platforms: Scaling Its Revenue BaseMeta Platforms (META +1.50%) primarily generates revenue by offering digital advertising across its social applications, including Facebook and Instagram, and developing virtual reality hardware.
While launching its Muse Spark artificial intelligence model and expanding its optical cable manufacturing capacity, it reported a 48% net income margin for the quarter ended March 31, 2026.
Snap: Navigating Seasonal Revenue PatternsSnap (SNAP +1.61%) generates revenue mainly by selling digital advertising space and augmented reality features on its Snapchat camera application.
It opened pre-orders for its new wearable augmented reality glasses and secured a credit rating upgrade, while reporting a -6% net income margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue gives investors a clear, top-level view of how much money a business brings in from its core operations over a specific period. This metric helps investors measure a company's overall size, market footprint, and long-term trajectory.
Quarterly Revenue for Meta Platforms and SnapQuarter (Period End)Meta Platforms RevenueSnap RevenueQ2 2024 (June 2024)$39.1 billion$1.2 billionQ3 2024 (Sept. 2024)$40.6 billion$1.4 billionQ4 2024 (Dec. 2024)$48.4 billion$1.6 billionQ1 2025 (March 2025)$42.3 billion$1.4 billionQ2 2025 (June 2025)$47.5 billion$1.3 billionQ3 2025 (Sept. 2025)$51.2 billion$1.5 billionQ4 2025 (Dec. 2025)$59.9 billion$1.7 billionQ1 2026 (March 2026)$56.3 billion$1.5 billionData source: Company filings. Data as of June 23, 2026..
Foolish TakeMeta and Snap both operate in the social media space and generate the bulk of revenue from advertising, but outside of that, the two companies are on vastly different trajectories. This is not only evident in their outsized sales difference, but also in their net income margins.
Snap went public in 2017, and in nearly ten years, has yet to reach profitability. Not only that, while sales are rising year over year, they are not seeing the degree of growth experienced by Meta. For example, Snap reported a 12% year-over-year revenue increase to $1.5 billion in the first quarter. Yet that pales in comparison to Meta’s 33% year-over-year jump to $56.3 billion.
Snap’s struggles with profitability contributed to its stock dropping to a 52-week low of $3.81 this year. Meanwhile, Meta’s share price also fell in 2026 due to its lavish spending on artificial intelligence. In its Q1 report, the Facebook parent announced an increase in this year’s capital expenditures to as high as $145 billion. The company spent $72 billion in 2025.
Even so, Meta attributes revenue growth to its AI investments. That’s why it’s doubling down in this arena to fund ongoing AI development. Snap does not have the same capacity to spend on AI, and that could end up hurting its sales growth in the future.
Australia said on Saturday it would double the maximum penalty it can impose on tech firms found to have failed to uphold a ground-breaking social media ban for children, as evidence mounts that the ban has had little effect on teen use.
The parents of a girl who was raped when she was 12 years old by an adult stranger she met on Snapchat have sued its parent company, Snap, and the attacker in Missouri state court.
The lawsuit filed Wednesday claims the social media company has refused to disable dangerous features in its app or warn parents about potential harms it may cause.
According to the lawsuit, the girl began using Snapchat in 2021, when she was 11, without her parents’ knowledge.
Gabriel Joel Valentin-Rios was sentenced to 18 years for statutory rape in Missouri. Missouri Department Of Corrections While the app requires users to be 13 to sign up, the lawsuit says the girl does not remember what birth date she entered and that children knew they could easily bypass the minimum-age requirement.
About a year after she began using Snapchat, the lawsuit says the app recommended her and teen girls from nearby high schools as friends to defendant Gabriel Joel Valentin-Rios, an adult who had no real-life connections to them.
It did not warn the children that connecting to strangers might be dangerous.
After the girl and Valentin-Rios connected, Valentin-Rios began sending her unsolicited nude photographs, the lawsuit says.
The girl “did not want these photographs and, at first, did not reciprocate but Snapchat’s product design made it impossible for (her) to avoid such explicit content,” it says.
As part of its Snap Maps feature, the app also provided Valentin-Rios with the girl’s home address without her knowledge, according to the lawsuit.
Valentin-Rios then groomed the girl, convincing her that he was a 17-year-old local high school boy, not a 25-year-old man.
While the app requires users to be 13 to sign up, the lawsuit says the girl does not remember what birth date she entered and that children knew they could easily bypass the minimum-age requirement. AP Photo/Richard Drew Eventually he got her to meet him in person and raped her.
Valentin-Rios pleaded guilty to statutory rape and is currently serving an 18-year prison sentence in Missouri.
The lawsuit claims Snapchat knew that Valentin-Rios had multiple accounts — even though it is against the app’s policies — including one he used to lure teen girls.
“We care deeply about the safety and well-being of all Snapchatters, and our teams have worked for years to build safeguards, launch safety tutorials, partner with experts, and work with law enforcement to help prevent the misuse of our platform,” Snap said in a statement.
The girl has been diagnosed with PTSD, anxiety and depression, according to the lawsuit.
The plaintiffs seek unspecified damages and are asking the court to compel Snap to stop practices that harm children.
“This assault did not happen in a vacuum — it happened because Snapchat’s product design made it easy for a predator to reach and manipulate an unsuspecting child,” said Matthew Bergman, founder of the Social Media Victims Law Center, which brought the suit on behalf of the plaintiffs. “Snap executives have long known that their features create a perfect environment for predators to exploit children, yet they have repeatedly failed to make the platform safe.”
This is not the first such lawsuit against Snap. New Mexico sued the company in 2024, saying the platform’s design features foster sextortion, sexual abuse and unwanted contact from adults to minors.
According to the lawsuit, Snap was well aware, but failed to warn parents, young users and the public that “sextortion was a rampant, ‘massive,’ and ‘incredibly concerning issue’ on Snapchat.” A judge denied the company’s motion to dismiss last year.
There are also individual lawsuits pending against the company, including one in Vermont on behalf of two 12-year-old girls who were sexually assaulted by an adult they met on Snapchat.
Snap (SNAP - Free Report) closed at $4.53 in the latest trading session, marking a +1.57% move from the prior day. This change outpaced the S&P 500's 0.1% loss on the day. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq lost 0.43%.
The company behind Snapchat's shares have seen a decrease of 22.44% over the last month, not keeping up with the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.34%.
The upcoming earnings release of Snap will be of great interest to investors. The company is forecasted to report an EPS of $0.07, showcasing a 800% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.53 billion, showing a 13.99% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.6 per share and revenue of $6.7 billion. These totals would mark changes of +81.82% and +12.91%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Snap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 10.64% rise in the Zacks Consensus EPS estimate. Snap is currently a Zacks Rank #3 (Hold).
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 7.5. This signifies a discount in comparison to the average Forward P/E of 17.83 for its industry.
It's also important to note that SNAP currently trades at a PEG ratio of 0.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Eyes on the Prize: Smart glasses introduces a category moving quickly from experiment to serious consumer market, as Snap, Meta and Google compete to define what comes next.
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After a decade of experiments, the smart glasses category is moving from curiosity to contest
In early formats, hardware was awkward, the battery life short, the social use case fuzzy, and the public memory still haunted by Google Glass.
This week, Snap has launched its first consumer AR glasses, Specs, at $2,195, moving the company out of its long developer-incubation phase and into a much more exposed commercial race with Meta and Google.
That price tells you almost everything about where the market is now. These are not mass-market sunglasses with a clever camera hidden in the hinge. Snap is selling a standalone spatial computer for the face, with a 51-degree field of view, dual Snapdragon chips, hand tracking, four hours of battery life, and up to 20 hours with the charging case. In other words, it is not trying to beat Meta’s Ray-Bans on wearability. It is trying to argue that the next important screen may not be a phone screen at all.
View of the MarketplaceFor now, Meta is the clear volume leader. Industry estimates put the company at roughly 70% of the smart-glasses market, with 3.5 million Meta Ray-Ban units shipped.
Behind it sit Xiaomi at 8.5% and Huawei at 2.7%. The distinction, though, is not merely about brand strength, but product philosophy. Meta has won early by making smart glasses look and feel close enough to ordinary eyewear that people will actually wear them all day.
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That matters because wear time is still the category’s unresolved truth. The vast majority of shipments, around 91%, by one 2026 forecast, are still audio-first smart glasses, not display-heavy AR devices. Lighter frames, familiar silhouettes and easier daily use continue to beat technical ambition when the product sits on the face rather than on a desk. That is why Snap’s new Specs, at 132 grams, are being positioned for shorter, more immersive sessions rather than all-day wear.
Double vision Snap Specs product image Snap’s new Specs, priced at $2,195, are designed less as everyday eyewear and more as a standalone spatial computer - a sign the smart-glasses market has reached a genuine inflection point.
SNAP
The more interesting number is not market share but growth. One 2026 industry forecast expects AI smart-glasses shipments to rise 85% year over year, passing 15 million units worldwide. Another projects an even larger jump, from 6 million units in 2025 to 20 million in 2026. Forecasts vary, but the direction is the same: the category is no longer being treated as a novelty side-show. It is beginning to look like a genuine hardware frontier.
That does not mean the market has settled. In fact, the opposite. What is emerging now is a split between two distinct design languages.
One is the ambient AI companion: glasses that look normal, sound useful, and let you ask questions, take calls, listen to music, translate signs or capture moments without ever introducing a visible display. Meta’s Ray-Bans sit squarely here.
The other is the standalone spatial computer: devices that project digital graphics into the real world and ask the wearer to do more than listen. Snap’s Specs belong to that camp, which is much more ambitious and, for now, much harder to normalise. Yet it seems Snap has spent enough money to make this a serious test
News reporting highlights the company has now spent more than $3.5 billion on its AR glasses ambitions, after more than a decade of development, and had already reorganised the unit into a standalone subsidiary earlier this year. That sort of spend changes the tone. A prototype can afford to be charming. A multibillion-dollar bet cannot.
The pressure is softened only slightly by the rest of the business looking steadier. In Q1 2026, Snap reported $1.529 billion in revenue, up 12% year over year, while its “Other Revenue” segment, driven by subscriptions such as Snapchat+ and Lens+ rose 87% to $285 million. Clearly it is not funding Specs from a collapsing core. It has a platform business that is stabilising while the hardware story gets more expensive.
Are Snap then late to commercial smart glasses opportunity? That is true in one sense and slightly misleading in another. Snap has been working on this for years, and the company enters the consumer phase with a substantial AR ecosystem already in place. It has spent the past decade cultivating developers, creators and brands around augmented reality, and has repeatedly argued that its advantage lies not only in hardware but in the software and experiences layered on top. Snap said this week that developers have already published hundreds of Lenses for Specs, after a year and a half of 10 Snap OS updates and more than 40 new features and APIs.
That is a smaller claim than the broader, often-cited figure of 400,000 developers building 4 million AR lenses across Snap’s wider platform, but it is the more commercially relevant one right now. Consumer hardware does not succeed on technical merit alone. It succeeds when people can immediately understand what it is for.
Wearability v. Tech ability That is where the category still feels unresolved. Earlier generations of smart glasses struggled badly with retention. Even Snap’s older Spectacles models were a reminder that novelty is not the same thing as habit. The industry has improved on battery life, display quality and AI use cases, but face-worn hardware remains more intimate, and therefore more demanding, than almost any other category in consumer tech.
Meta has answered that problem by making the glasses as close to normal eyewear as possible. Snap is answering it by betting that there are moments when people will accept a heavier device because the experience is strong enough: a 3D game hovering above a table, navigation layered onto the street, live visual coaching, spatial collaboration. The question is whether those moments are frequent enough to sustain a category beyond enthusiasts.
Meta’s Long Distance ViewMeta’s advantage is not simply that it moved first. It is that it understood the category’s central tension sooner than most of its rivals: people may be curious about smart glasses, but they still need to want to wear them. That is why the Ray-Ban partnership matters so much. By placing the technology inside frames people already recognise, Meta turned a futuristic hardware problem into a familiarity play.
Recent reporting shows Meta accounted for 76.1% of global smart-glasses shipments in 2025, while Ray-Ban Meta and related models have already reached the multimillion-unit mark, giving the company a lead built less on technical spectacle than on social acceptability. Snap is betting on the next screen. Meta is betting that the first battle is still the face.
What Next?For years, smart glasses were discussed as though one device would eventually win. The more plausible outcome is that the market becomes layered.
Audio-first glasses may become the everyday companion: lighter, cheaper, more wearable, closer in spirit to earbuds with a frame.
AR-first glasses may become the higher-value device: more immersive, less constant, used for gaming, shopping, navigation, work, sport and certain forms of entertainment.
That is what makes Snap’s launch this week significant, even if the product itself remains niche at first. It signals that the category has reached the stage where companies are no longer simply testing whether people might want smart glasses. They are beginning to define what kind of smart glasses people may want.
And that is usually the point at which a technology stops being experimental and starts becoming a market.
Specs marks Snap's latest hardware push as Spiegel targets early adopters, developers, and enterprise demand. Summary
Snap is betting on AR hardware during a turbulent period for the company.
Snap SNAP has introduced Specs, a $2,195 pair of augmented reality glasses that could become one of the company's most important hardware bets. Unveiled at the AWE mixed-reality conference in Long Beach, California, the thick-rimmed glasses are expected to go on sale this fall and come with lenses that can automatically shift between clear and tinted states depending on lighting conditions.
CEO Evan Spiegel described Specs as a “really big long-term opportunity” and called them the “computer of the future,” positioning the product as a possible leap forward for Snap's augmented reality ambitions. The launch comes during a turbulent period for the Snapchat operator, after the company cut 16% of its workforce, activist investor Irenic Capital Management took a stake, and Snap's stock fell nearly 30% this year.
Specs are designed to run apps, games, notifications, turn-by-turn directions, contextual AI voice assistance, and third-party AR software through transparent lenses. The glasses offer four hours of battery life, a charging case that can recharge them as many as four times, a 51-degree field of view, up to 16 million colors, hand tracking, two Qualcomm processors, two size options, and prescription lens compatibility, while investor attention could now shift to whether early adopters, developers, and enterprise customers are willing to pay for Snap's latest AR push.
Snap Inc (NYSE:SNAP) shares fell about 4% following the company’s unveiling of its new augmented reality (AR) glasses, Specs, as investors weighed the high price tag and uncertain consumer demand against the company’s long-term vision for wearable computing.
The company introduced Specs at the Augmented World Expo in California, positioning the device as its first consumer-facing standalone AR glasses. The product is available for pre-order at $2,195, plus a $200 refundable deposit, with shipments expected later this year in the United States, United Kingdom, and France.
Snap described Specs as a wearable computer built into see-through AR glasses designed to bring AI assistance, entertainment, communication tools and spatial computing into everyday environments.
Evan Spiegel, Snap CEO, said the device represents “the beginning of a new era in computing,” arguing that it moves computing from handheld devices into the physical world.
“For decades, computers have asked us to look down, sit still, or step out of the moment,” he said. “SPECS bring computing into the world around us where we live, work, learn, create, and connect.”
Specs include features such as a mixed-use battery life of up to four hours, a charging case providing additional charges, and developer tools aimed at expanding the ecosystem of applications for the device.
Snap also highlighted ongoing investments in AR infrastructure, including its Lens Studio platform and custom operating system work.
Snap Inc (NYSE:SNAP) shares fell about 4% following the company’s unveiling of its new augmented reality (AR) glasses, Specs, as investors weighed the high price tag and uncertain consumer demand against the company’s long-term vision for wearable computing.
The company introduced Specs at the Augmented World Expo in California, positioning the device as its first consumer-facing standalone AR glasses. The product is available for pre-order at $2,195, plus a $200 refundable deposit, with shipments expected later this year in the United States, United Kingdom, and France.
Snap described Specs as a wearable computer built into see-through AR glasses designed to bring AI assistance, entertainment, communication tools and spatial computing into everyday environments.
Evan Spiegel, Snap CEO, said the device represents “the beginning of a new era in computing,” arguing that it moves computing from handheld devices into the physical world.
“For decades, computers have asked us to look down, sit still, or step out of the moment,” he said. “SPECS bring computing into the world around us where we live, work, learn, create, and connect.”
Specs include features such as a mixed-use battery life of up to four hours, a charging case providing additional charges, and developer tools aimed at expanding the ecosystem of applications for the device.
Snap also highlighted ongoing investments in AR infrastructure, including its Lens Studio platform and custom operating system work.
The stock slid on Wednesday after the company showcased the product the previous day.
Jones Says SPECS Pricing Could Limit AdoptionSnap debuted SPECS on June 16, 2026, with preorders requiring a $200 refundable deposit and shipments expected in the fall in the U.S., U.K., and France.
The glasses are priced at $2,195.
Jones said Snap's AR innovation is impressive, but he believes the price point is likely limiting for the current form factor.
BNP Sees Mass-Market QuestionsJones said SPECS stands out among current AR products, but he expects questions to remain around price, battery life, and broad mass-market use.
Snap said the glasses offer up to 4 hours of mixed-use battery life, while the charging case provides 3 additional charges for a total of about 20 hours. The product uses Snap's own display technology and delivers a visual experience comparable to a 24-inch desktop or a 115-inch screen viewed from 10 feet away.
Analyst Keeps Focus On Earnings And Investment PlansJones said the launch does not change BNP Paribas' view on Snap.
BNP lists a $6 price target on Snap, implying 16% upside from the June 16 price of $5.20.
Jones said investors will likely focus on how much Snap plans to spend to drive SPECS sales while it works toward GAAP profitability and stronger revenue growth.
He said BNP will look to Snap's second-quarter earnings call for more details on early adoption and future investment plans.
SNAP Price Action: Snap shares were down 4.46% at $4.93 at the time of publication on Wednesday, according to Benzinga Pro data.
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On Tuesday’s TBPN, the conversation drifted from SpaceX’s eye-watering private mark to Snap’s eye-watering hardware price tag. Host John Coogan and his callers landed on a useful pairing. SpaceX trading at around 100x price-to-sales, and Snap (NYSE:SNAP | SNAP Price Prediction) asking consumers for $2,195 for a pair of glasses CEO Evan Spiegel keeps calling “the next computer.”
The segment opened with Ryan Peterson’s viral line that SpaceX’s opening-day pop meant “Elon made more money than Warren Buffett made in his entire life,” with Coogan noting the stock was “up another 14% after hours.” Then a caller dropped the multiple that reframed everything.
What 100x price-to-sales actually implies A caller, citing Ad Ludlow, brought attention to SpaceX’s price-to-sales, against Amazon (NASDAQ:AMZN) at 3.6x and Microsoft (NASDAQ:MSFT) at 9.2x. Coogan’s framing was a thought experiment. If Amazon traded at SpaceX’s multiple, you would be staring at “a $100 trillion company.”
SpaceX is being priced as if Starship and Starlink and the eventual AI segment are pure optionality on entire new economies. The S-1 describes a Connectivity segment that generated $4.4 billion in income from operations and $7.168 billion in Segment Adjusted EBITDA in 2025, while the Space segment burned through $3 billion in Starship R&D in the same year. The cash flows exist. The multiple prices a future where they compound for a very long time without serious competition.
Public-market comparables are nowhere close. Microsoft’s Azure still grew 18.3% last quarter at roughly 9.33x sales mark. Amazon’s TTM price-to-sales sits at 3.56x on $742.8 billion of revenue. SpaceX is in its own column.
Snap’s $2,195 glasses and the Vision Pro question Spiegel unveiled Specs at AWE on June 16, 2026, calling AR eyewear the next computing platform. The Snap CEO had teased the moment on the Q1 call, telling investors he was focused on “disciplined execution as we invest in Specs and our long-term opportunity in intelligent eyewear.” The market response has been chilly. SNAP is down 11% over the five days and down 41% year-to-date.
Coogan called the $2,195 price “a lot of money,” and it is. But it sits below Apple (NASDAQ:AAPL)’s Vision Pro, which launched at $3,499. A second caller flagged the design distinction that matters. Specs are built as a mobile device. The Vision Pro is a sit-down headset people mostly use indoors. Whether anyone wants to wear a $2,195 camera on their face walking through Whole Foods is the open question.
What Snap shareholders are actually funding The company guided to $500 million-plus in annualized cost reductions in the second half of 2026, with $95-130 million in pre-tax charges mostly in Q2. Q1 revenue grew to $1.53 billion, free cash flow more than doubled, and adjusted EBITDA hit $233.33 million, per the company’s Q1 2026 8-K filing. North America DAU, though, is still down 7% year over year at 92 million.
Activist Irenic Capital has been telling Snap to shut Specs down, arguing the program has already consumed over $3.5 billion, with a price target of $26.37. Morningstar cut its fair value to $7 from $9 after Q1.
The SpaceX comparison cuts against Snap. SpaceX is being priced on a future that is arriving on schedule. Snap is asking shareholders to underwrite a category that may or may not exist by the time the glasses ship later this year. One has reusable rockets. The other has a camera on your temple and a CEO who calls it the next computer.
Image Credits:Joe Scarnici / Getty Images for Snap Snap’s long-awaited AR glasses, Specs, didn’t have the best debut.
The company’s stock hasn’t been on the healthiest trajectory lately. It’s dropped 30% over the past year. Following Specs’ launch, it sank more than 5% — falling from $5.86 a share on Tuesday to a low of $4.83 on Wednesday morning. As of this writing, the stock still hasn’t recovered the position it held prior to the announcement.
The big concern surrounding Snap’s new smart glasses — which the company has been working on for over a decade — is the cost: The company maintains they will retail at nearly $2,200 apiece.
It’s worthy of note that Snap’s core user demographic — teenagers — are not typically equipped with that kind of pocket change, leading onlookers to question the profitability path for the new product.
Snap’s CEO, Evan Spiegel, did an interview with CNBC on Tuesday (during which he sported the new glasses) and, when questioned about the hefty price, responded: “The most important way to think of Specs is as a computer, and so they’re comparably priced to other high-end computers or high-end laptops.”
Spiegel further justified the cost by saying that Specs occupies a unique space in the AR market between glasses like Meta’s Ray-Bans — which cost a lot less but provide significantly less compute power — and bulkier headsets like the Apple Vision Pro, which are powerful but very expensive.
Spiegel said his product was both “highly wearable but also incredibly capable for immersive computing.”
Key Takeaways SNAP launched SPECS AR glasses with standalone features, priced at $2,195 and shipping this fall.SPECS use dual Snapdragon chips and support hand tracking, computer vision and AR experiences.Snap expects faster Q2 revenue growth, helped by improving advertising trends in North America. Snap (SNAP - Free Report) shares have dropped 41.3% in the year-to-date period, underperforming the Zacks Computer and Technology sector’s appreciation of 18.2%.
The company’s expanding portfolio is expected to boost its prospects. On June 16, 2026, Snap introduced SPECS, a new pair of standalone augmented reality glasses designed to bring digital information, entertainment and assistance into the user’s surroundings without pulling attention away from the real world. Unveiled at Augmented World Expo 2026, the glasses are built using Swiss TR90 polymer and come in two sizes, weighing 132 grams and 136 grams. SPECS feature a 51-degree field of view, support 16 million colors and include electrochromic lenses that can shift from clear to tinted. The device also supports prescription inserts and is designed for extended daily use.
SPECS are powered by two Snapdragon processors, enabling computer vision, hand tracking and responsive augmented reality experiences. The glasses offer up to four hours of mixed-use battery life, while the charging case extends usage to as much as 20 hours. Developers have already created hundreds of Lenses for the platform, and Snap has introduced new tools to support further development. SPECS are available for pre-order at $2,195 with a refundable $200 deposit and are expected to begin shipping this fall in the United States, U.K. and France.
Snap did not announce any acquisitions in the first quarter of 2026. The company concentrated on growing its business through new products, stronger advertising performance, subscription expansion and investments in augmented reality. Management cited Snapchat, Memories Storage, Lens, Sponsored Snaps and advertising products as key contributors to growth during the quarter.
This announcement relates to Snap’s Augmented Reality (“AR”) and Hardware segment, which focuses on its SPECS AR glasses. The product is designed to bring digital information, entertainment and assistance into the real world through wearable glasses. It is part of Snap’s wider AR ecosystem, which includes Snap OS, Lens Studio, computer vision technology and tools for developers. The launch also aligns with Snap’s efforts to expand its AR platform and support new applications built on its system. These developments highlight the company’s focus on combining hardware and software to build practical augmented reality experiences for everyday use.
SNAP’s Earnings Estimate Revision Shows Positive TrendSnap expects a two-percentage-point acceleration in revenue growth at the midpoint of its second quarter guidance compared with the first quarter, primarily driven by improvements in the North American advertising business.
The Zacks Consensus Estimate for second-quarter 2026 net sales is pegged at $1.53 billion, indicating a year-over-year increase of 13.99%. The consensus mark for the second-quarter earnings is pinned at 7 cents per share, unchanged over the past 30 days, indicating a year-over-year jump of 800%.
The Zacks Consensus Estimate for fiscal 2026 net sales is pegged at $6.7 billion, indicating a year-over-year increase of 12.91%. The consensus mark for the fiscal 2026 earnings is pinned at 60 cents per share, up 1 cent over the past 30 days, indicating a year-over-year jump of 81.82%.
Zacks Rank & Stocks to ConsiderSnap currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Alps Electric (APELY - Free Report) , Dell Technologies (DELL - Free Report) and Teradyne (TER - Free Report) , which currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Alps Electric, Dell Technologies and Teradyne are currently pegged at 2.3%, 26.3% and 34.3%, respectively. Shares of Alps Electric, Dell Technologies and Teradyne increased 1.7%, 233.1%, 111.1%, respectively, over the year-to-date period.
Big Tech continues its pursuit of AR glasses because whoever owns the post-smartphone computing platform could control the next generation of software, services, advertising and commerce.
From Google Glass and Magic Leap to Humane’s AI Pin, most wearable products have struggled to offer a compelling advantage over smartphones.
AI, displays and sensors have improved dramatically, but the industry still hasn’t proven that smart glasses deliver enough everyday utility to justify replacing—or even meaningfully reducing reliance on—the smartphone.
The smartphone era won’t last forever, and the tech industry is spending billions to own whatever comes next. Artificial intelligence (AI) has sharpened that ambition, giving new momentum to an old dream: ambient computing that delivers information through a lens rather than a screen.
On Tuesday (June 16), Snap unveiled its SPECS augmented reality (AR) glasses, priced at over $2,100. The market responded quickly. Snap Inc.’s share price dropped 5% after the launch and has continued to slide in the days since, with no rebound as of reporting.
It’s worth asking why the world’s most valuable and innovative companies are all so dead set on smart glasses being the next-generation product that replaces the smash-success of the smart phone.
From Google Glass to Microsoft HoloLens, from Magic Leap to Humane’s AI Pin and across Meta’s early virtual reality (VR) push and years of smartwatch experiments, the industry has poured billions into wearable hardware. Most never moved past niche adoption.
The record points to a stubborn truth: consumers don’t adopt hardware just because it’s futuristic. They adopt it because it solves a problem better than what they already carry.
See also: If AI Fixed Smart Glasses, Why Aren’t Consumers Wearing Them?
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The Device That Keeps Losing to the Smartphone It Was Built to Replace The history of computing has largely been a story of shrinking distance between humans and machines.
Every few years, a new device emerges promising to free consumers from their smartphones. The pitch changes, but the underlying promise remains remarkably consistent: computing should become more natural, more ambient and more integrated into daily life. Screens should disappear, information should appear when needed, and the next great platform should feel less like a machine and more like an extension of human perception.
Unlike smartphones, which require users to stop what they are doing and look down at a screen, AR glasses promise to place information directly into a user’s field of view. Directions appear while walking, messages surface without reaching for a phone and AI assistants observe surroundings and provide context in real time.
Yet the history of consumer technology is littered with products that attempted exactly that and failed. The clearest takeaway after two decades of wearable experimentation is that consumers reward utility, not technological ambition. Even products that achieved some level of success often succeeded by solving narrow, practical problems rather than transforming computing. Fitness trackers gained traction because they quantified health activity. Smartwatches found an audience by providing notifications, health monitoring and convenience. Neither replaced the smartphone.
At the same time, many next-generation computing initiatives resemble strategic positioning exercises on purpose. Companies understand that breakthrough platforms rarely emerge fully formed. Smartphones themselves required years of iteration before reaching mass adoption.
See also: How Big Tech’s XR Push Could Redefine Both Payments and AI
Smart Glasses Aren’t the Goal. The Platform Behind Them Is. The persistence of the smart glasses dream becomes easier to understand when viewed through a platform lens. The smartphone is not merely a successful product category. It is one of the most profitable and strategically important platforms in history.
Any company hoping to challenge that dominance faces a difficult reality. Building another smartphone is unlikely to work. Building what comes after the smartphone could.
That possibility explains why companies as different as Snap, Meta, Apple, Google and OpenAI-linked hardware ventures continue investing in wearable computing despite repeated setbacks.
Humane’s AI Pin, for example, became one of the industry’s most closely watched experiments precisely because it attempted to build a future beyond the smartphone around AI interactions. The device generated substantial interest but struggled to convince consumers it offered meaningful advantages over phones already equipped with sophisticated AI capabilities.
Modern smartphones are extraordinarily capable. They provide powerful cameras, AI assistants, navigation, payments, entertainment, communication and productivity tools in a device people already carry everywhere. Any successor technology must do more than offer novelty. It must create enough additional value to justify new hardware, new behaviors and often significant cost.
That is why Snap’s new glasses matter, regardless of whether they become a commercial success. They represent the latest test of one of technology’s longest-running assumptions: that the future of computing sits directly in front of our eyes.
The wearables graveyard suggests that assumption may be wrong. But the industry keeps digging because the reward for being right would be nothing less than ownership of the next era of computing.
And despite a lack of consumer demand, tech giants can still mitigate their production costs with a relatively robust government and public agency demand pipeline for the latest generation of smart glasses and AR hardware products.
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Snap (SNAP - Free Report) ended the recent trading session at $4.66, demonstrating a -1.69% change from the preceding day's closing price. This change lagged the S&P 500's 1.09% gain on the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 1.91%.
The company behind Snapchat's shares have seen a decrease of 15.66% over the last month, not keeping up with the Computer and Technology sector's gain of 0.22% and the S&P 500's gain of 0.29%.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.07, indicating a 800% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.53 billion, up 13.99% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.6 per share and revenue of $6.7 billion. These totals would mark changes of +81.82% and +12.91%, respectively, from last year.
Any recent changes to analyst estimates for Snap should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.64% higher. Snap is currently a Zacks Rank #3 (Hold).
In the context of valuation, Snap is at present trading with a Forward P/E ratio of 7.97. Its industry sports an average Forward P/E of 18.05, so one might conclude that Snap is trading at a discount comparatively.
Investors should also note that SNAP has a PEG ratio of 0.15 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. SNAP's industry had an average PEG ratio of 1 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
The growing push to restrict Americans from using federal food aid to buy certain processed or sugary products is creating a new challenge for some of the biggest U.S. food and beverage companies.
The U.S. Department of Agriculture as of May had approved food restriction waivers for Supplemental Nutrition Assistance Program benefits in 23 states, affecting roughly one-third of all SNAP participants, according to Numerator. The research firm estimates the restrictions could reduce food and beverage sales by as much as $830 million this year as consumers either shift spending to approved products or cut back overall.
Kroger CEO Greg Foran said on the company's first-quarter earnings call on Thursday that customers remain under pressure in part due to reduced SNAP benefits, as well as higher gas prices, "squeezing budgets."
"Customers are managing spend carefully and shopping with real intent," Foran said.
Most waivers focus on limiting consumption of sugar-sweetened beverages and confectionery products, signaling a targeted approach rather than broad food restrictions. As the movement spreads, it's forcing major packaged food companies to monitor shopper behavior and assess whether they need to remake product lines — though many of them have already been changing what they offer after consumer habits shifted in recent years.
Iowa recently became the first state to codify elements of the "Make America Healthy Again," or MAHA, movement into law, approving legislation that targets artificial food dyes, ultra-processed foods in school and purchases made through SNAP.
"Altogether, this bill advances the health and wellness for every Iowan today and for generations to come," said Iowa Gov. Kim Reynolds when she signed the measure last month.
She added the law helps "refocus federal food assistance programs on the actual purpose for which they were created: helping low-income families afford nutritious food."
The law bans several synthetic dyes, including Red 40 and Yellow 5, from most K-12 school meals and vending machines, while also restricting SNAP recipients from using benefits to buy products such as soda and candy.
Navigating the MAHA eraMany food companies aren't waiting to see how policies evolve.
At a Goldman Sachs conference in May, Hershey said it has researchers in Texas conducting in-store interviews with shoppers who receive SNAP benefits to understand how purchasing behavior is shifting under new restrictions in the state.
"We've observed some consumer uncertainty at the register as new restrictions take effect," a Hershey spokesperson told CNBC. "We anticipate this will improve as store execution improves, rules become clearer, and SNAP users can plan and budget with more certainty."
The company is studying everything from product substitutions to budget tradeoffs, offering an early glimpse into how major food manufacturers are preparing for a potentially significant shift in consumer demand.
Many of the products most exposed to the changes are produced by some of the largest companies in the industry like Kraft Heinz, PepsiCo, Coca-Cola, General Mills, Nestle and others.
J.M. Smucker CEO Mark Smucker, however, told CNBC he expects the SNAP policy changes to have a more muted impact.
"I would say the current environment isn't really that different than what we've seen over time, and thus far some of the modifications have really had no meaningful impact to our business," he said.
Still, the company's Hostess products like Twinkies and Donettes — the latter of which saw net sales grow 13% in the latest quarter, according to the company — may be impacted under broader state restrictions on "highly processed snacks."
Current SNAP waivers in states like Texas focus primarily on candy and sugary drinks, not snack cakes. However, some states have proposed broader definitions that could eventually encompass packaged desserts and sweet baked goods.
At the same time, fewer Americans are even receiving the benefits. One analysis estimates 3.5 million people have lost their SNAP aid since President Donald Trump last year signed a sweeping bill that restricts eligibility for SNAP, among other changes.
Many U.S. households have found it harder to pay for groceries following the changes. The restrictions have also meant fewer dollars flowing to major businesses.
Walmart is particularly exposed to SNAP spending, capturing roughly a quarter of all SNAP grocery dollars nationwide, according to Numerator. Kroger, Costco and Amazon follow at about 8%, 6% and 5%, respectively.
The curbs on what consumers can buy with federal assistance are only one shift food companies are watching.
At a hearing of the Senate Committee on Health, Education, Labor and Pensions in April, Health and Human Services Secretary Robert F. Kennedy Jr. went as far as to say he "would support" a ban on junk-food television advertising. The department has not yet taken steps to introduce such a ban.
Responding both to Kennedy's MAHA initiative and shifting consumer tastes, food manufacturers have also accelerated efforts to reformulate products and reduce synthetic ingredients in products like Kool-Aid, Fanta, Doritos and Flamin' Hot Cheetos, which contain dyes like Red 40 and Yellow 5.
General Mills, Kraft Heinz and Target have all pledged to phase out certain artificial colors and additives by 2027 or sooner.
Nestle announced Monday it achieved its commitment on time to fully eliminate Food, Drug & Cosmetic colors from its U.S. food and beverage portfolio.
Snap's stock is down more than 90% from its peak. The glasses, called SPECS, will retail for $2,195, a much higher price point than competitors' offerings.
Snap stock is trading flat. What’s ahead for SNAP stock? The AWE KeynoteWhat We Know About SpecsThe Bigger PictureThe RiskAt $2,500, Specs will be a premium product targeting early adopters rather than the mass market. The AR glasses space is getting crowded — Meta, Apple, Google, and Samsung are all working on competing products. And Snap’s financial position adds urgency: the company needs Specs to succeed to justify its current valuation and arrest the decline in its core advertising business.
Snap Shares Trade FlatSNAP Price Action: At the time of publication, Snap shares were flat at $5.71, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Snap CEO Evan Spiegel is betting consumers are so tired of looking at smartphone screens that they'll be willing to pay over $2,000 for augmented reality glasses that bring digital visuals into a user's field of vision.
"Almost 20 years since the launch of the iPhone, people are ready to think about computing differently," Spiegel said in an interview with CNBC.
On Tuesday, the Snap co-founder debuted Specs, his company's first AR device geared toward the broader public instead of developers. At $2,195 with a $200 refundable deposit, Specs are more than 15 times the price of Snap's $130 camera-only Spectacles that debuted in 2016 and never became a hit.
"Specs really represents a way to use computing together in shared experiences in the real world, looking up through see-through lenses rather than at an opaque screen," Spiegel said. The device is expected to ship later this year in the U.S., U.K. and France.
It's a nascent market but one already featuring more well-capitalized competitors. Meta's Reality Labs has found some success with its Ray-Ban Meta glasses in partnership with EssilorLuxottica, after the company struggled to find a mass audience for its Quest-branded virtual reality headsets. And in May, Google showed off its upcoming AI-powered glasses, being developed with Samsung and eyewear makers Warby Parker and Gentle Monster, with an emphasis on audio.
Spiegel dismissed audio-only smart glasses, characterizing them as "very lightweight glasses that really don't do much."
"They're kind of like a phone accessory or an open-ear headphone," Spiegel said.
watch now
But Meta and Google have built dominant digital ad businesses that generate enough cash to allow the companies to experiment with costly hardware efforts. Snap, by contrast, has struggled to impress Wall Street, losing money every year that it's been a public company.
In January, Snap created a subsidiary dubbed Specs Inc. to house the development of its AR glasses.
"We've been really clear with investors since we founded the company that we're going to manage the business for the long term and really in service of our community and our customers," Spiegel said. "I think this is an important step for investors in the sense that they'll see a lot of progress that they haven't yet seen before, but it really is just another step."
Snap shares were down around 4% in midday-trading after the company announced the Specs.
Much of Spiegel's confidence rests on his view that there's life after smartphones.
More people are "actually questioning their relationships with screens," Spiegel said, citing factors like the "neck pain they got from staring down into a small phone screen" or the feeling that they're missing out on everyday moments.
The early days of smart glasses have shown promise while VR remained a niche category. Apple's Vision Pro, which starts at $3,500, hasn't become the iPhone makers' next killer product despite hefty investment and a big marketing push, and Meta has downsized its VR ambitions this year, converting its Horizon Worlds VR platform into a Roblox-like mobile app.
Spiegel said "there's certainly a lot of developers who are coming from the VR space or looking for more opportunity in augmented reality."
Compared to what's on the market, Spiegel called Specs the most capable, most aware and most accessible spatial computer that's available today."
But with rising inflation eating away at consumer confidence, high-priced electronics could be a tough sell at the moment.
"This is like the worst time for any company to be launching any kind of premium product," said Jitesh Ubrani, a research manager for IDC. For Snap, he added, "there's also the fact that their core audience has always skewed young, and typically that audience can't afford to spend a lot."
The new Specs AR glasses are lighter and contain a larger display than the previous developer-focused version of Spectacles. They offer nearly four hours of battery life and Bluetooth connectivity. Developers will also be able to create AI agent-like experiences for the device using a preview feature that integrates with Anthropic's Claude Code, OpenAI's Codex and Cursor's coding tools.
Regarding potential child-safety concerns with Specs, Spiegel said the company plans to release later this year parenting "tools to make it easier to share the Specs with your teenager with a more limited set of Lenses," which are AR effects, as well as certain features "on the operating system side."
Spiegel, a father of four boys, said he's been testing Specs at home with his family.
"Rather than having kids staring down at a single player on a little screen, you can run around and play laser tag, you can learn about dinosaurs, you can build Legos," Spiegel said. "It's really, really fun to be able to play with see-through computing, because it's something that you can share."
WATCH: Watch CNBC's full interview with Snap CEO Evan Spiegel.
Item 1 of 3 Snapchat logo is seen in this illustration taken July 28, 2022. REUTERS/Dado Ruvic/Illustration
[1/3]Snapchat logo is seen in this illustration taken July 28, 2022. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
SummaryCompaniesSpecs expected to ship this fall in the US, UK and FranceSnap shares fall 1.6%, analyst says high price may affect salesRising memory-chip costs impacted Specs pricing, Spiegel saysJune 16 (Reuters) - Snap on Tuesday launched its first augmented-reality glasses for consumers at a hefty price of $2,195, pitching the device as the future of how people interact with technology in the AI age.
Unveiled at the Augmented World Expo in Long Beach, California, Specs mark a major bet by the social media minnow (SNAP.N), opens new tab in a device category that even Apple has struggled to turn into a hit with its Vision Pro headset.
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The launch comes at a critical moment for Snap, whose ad business is under pressure from larger rivals. An activist investor has also demanded it spin off or shut down the cash-burning Specs unit after more than $3.5 billion in investment.
Growing concerns about smartphones' impact on mental health and advancements in AI have spawned a wave of products that aim to dethrone phones as the central gadget in daily life.
Among the more successful are Meta's Ray-Ban smartglasses, whose top model has only a small display for text and navigation prompts and lacks full augmented reality — technology that overlays digital content onto a user's real-world view.
To outshine rivals, Snap has made Specs far lighter than the Vision Pro and more capable than Meta's glasses, which have been developed with EssilorLuxottica (ESLX.PA), opens new tab and weigh roughly half as much as Specs.
Initially available in black, Specs resemble a pair of chunky retro sunglasses with thick frames and need no external battery pack or accessories, such as a puck for hand gesture control.
Through their AR lenses, they can overlay digital content onto the wearer's view of the real world, projecting walking directions on streets, fetching AI-powered answers mid-task or letting them stream content and open a virtual whiteboard.
Developers have built AR experiences ranging from an immersive Apollo 11 recreation to PuttView golf guidance, and Specs also have other smartglass features such as capturing video.
"We wanted to build a totally new type of computer," Snap CEO Evan Spiegel told Reuters.
He said the company developed new technology across nearly every component, from a custom display and lens layer delivering a wide field of view to software optimized for low-power chips that extends battery life without adding bulk.
Specs offer the capability of some "more expensive headsets with the wearability of smart glasses at a more accessible price point," Spiegel said.
The glasses are far cheaper than the $3,499 Vision Pro but pricier than Meta's $379-to-$799 range, which may limit consumer adoption.
"The price point is still a bit on the high end of what consumers expect from AR glasses," said Anshel Sag, principal analyst at Moor Insights & Strategy.
But he said "building full AR glasses is extremely difficult and expensive, and for Snap to be among the first is a big deal," noting that Specs' operating system is "undervalued" and key to the product.
Shares of Snap fell 1.6% in afternoon trading.
MEMORY CHIP CRUNCH IMPACT, FOCUS ON DEVELOPERSSpiegel said the memory chip cost surge "has been quite impactful" and Snap wants to offer cheaper versions in the future, though it has not disclosed how much memory Specs carry.
Powered by two Qualcomm Snapdragon processors, Specs offer up to four hours of battery life and come with a charging case that provides four additional charges. They are expected to ship this fall in the U.S., UK and France, with wider availability tied to pre-order demand.
Snap is initially focusing on developers key to building AR experiences. It said "hundreds of thousands" already use its Lens Studio and it is rolling out app-building tools through Claude Code, Codex and Cursor, among other features.
That could prove crucial as competition intensifies.
Google partnered with Warby Parker late last year to launch AI-powered smartglasses, while Apple is developing a pair that could arrive as soon as next year, according to Bloomberg News.
OpenAI, which acquired former Apple designer Jony Ive's startup, has also considered building glasses, the Information has reported.
Reporting by Jaspreet Singh and Aditya Soni in Bengaluru; Editing by Pooja Desai
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Jaspreet Singh joined Reuters as a technology reporter in April 2023. He covers a raft of developments including deals, layoffs, management changes, quarterly earnings and the latest in the world of AI. He is interested in stories that bring to light any corporate misconduct, abuse of power and innovation. Jaspreet graduated from Panjab University with a degree in Journalism. If you have any sensitive information or a tip to share, contact him for an off-the-record introduction chat. He will explain what it means to speak with a reporter on background.
Item 1 of 2 Evan Spiegel co-founder and CEO of Snap Inc., attends the Milken Institute Global Conference 2025 in Beverly Hills, California, U.S., May 7, 2025. REUTERS/Mike Blake
[1/2]Evan Spiegel co-founder and CEO of Snap Inc., attends the Milken Institute Global Conference 2025 in Beverly Hills, California, U.S., May 7, 2025. REUTERS/Mike Blake Purchase Licensing Rights, opens new tab
CompaniesJune 16 (Reuters) - Snap (SNAP.N), opens new tab CEO Evan Spiegel told Reuters the company's new Specs augmented-reality glasses are part of its long-term strategy, pushing back on activist investor demands to shut down or spin off the cash-burning unit behind the device.
The Snapchat parent launched the device, its first consumer AR glasses, on Tuesday at a price of $2,195 and pitched them as the future of how people interact with technology in the AI age.
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The launch comes months after Irenic Capital Management pushed Snap to consider options for Specs as part of a series of changes that the activist investor said could boost the social media company's worth by at least five times.
Irenic has argued Specs should be funded on its own, noting Snap has already spent more than $3.5 billion on the unit.
"While investors may want more short-term profitability, our job at Snap is to drive long-term profitability and the long-term success of the company," Spiegel said in an interview.
"One of the things we've always been clear about as we've built Snap... was that we were committed to our long-term vision. And that includes staying independent rather than selling the company," he said.
Spiegel said the company is expected to share "more later this year in terms of how we're thinking about partnerships over a longer period of time."
The company carved out the unit as a standalone subsidiary in January, a structure that could let it raise outside funding.
Reporting by Jaspreet Singh and Aditya Soni in Bengaluru; Editing by Pooja Desai
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Jaspreet Singh joined Reuters as a technology reporter in April 2023. He covers a raft of developments including deals, layoffs, management changes, quarterly earnings and the latest in the world of AI. He is interested in stories that bring to light any corporate misconduct, abuse of power and innovation. Jaspreet graduated from Panjab University with a degree in Journalism. If you have any sensitive information or a tip to share, contact him for an off-the-record introduction chat. He will explain what it means to speak with a reporter on background.
Snap Inc. (NYSE: SNAP) today unveiled SPECS, a wearable computer built into see-through augmented reality glasses. SPECS are available for pre-order today at SPECS.COM for $2,195 with a $200 refundable deposit, and are expected to ship this fall in the United States, United Kingdom, and France.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260612154498/en/
Kaia Gerber for SPECS, by Steven Meisel
“SPECS are the beginning of a new era in computing,” said Evan Spiegel, co-founder and CEO of Snap Inc. “For decades, computers have asked us to look down, sit still, or step out of the moment. SPECS bring computing into the world around us where we live, work, learn, create, and connect.”
For more than a decade, Snap has invested across the full augmented reality stack including developer tools, a proprietary operating system, displays, optics, and computer vision, filing more than 7,000 patents to create technology that makes computing more human. With SPECS, that long-term vision moves from phones to glasses.
“The smartphone put our lives in our pockets,” Spiegel said. “SPECS put computing into the world, where life actually happens.”
Today’s devices force a tradeoff between capability and wearability. AI glasses are wearable, but limited in what they can do. Headsets are powerful, but can be uncomfortable to wear and shut people out of the world. SPECS represent a new category: more capable than AI glasses, more wearable than headsets, and fully standalone, with no puck or tether.
SPECS are built to be wearable for everyday life and capable of rich spatial computing. Crafted from high-performance Swiss TR90 polymer, SPECS are available in two sizes, with the 47 mm model weighing just 132 grams and the 52 mm model weighing 136 grams. Removable inserts support a wide range of prescriptions.
The glasses feature Snap’s proprietary liquid crystal on silicon display, with a 51-degree field of view and 16 million colors for sharper contrast and richer, smoother visuals. The field of view is equivalent to a 24-inch desktop display for work or up to a 115-inch home cinema screen placed about 10 feet away.
Snap redesigned the waveguide to deliver a clearer, more seamless view of the world with minimal distortion. Our new waveguide uses billions of invisibly small nanostructures, so small that more than 10,000 can fit on the tip of a single hair. Electrochromic lenses, inspired by the same advanced technology found in Boeing 787 Dreamliner windows, shift from clear to tinted in 10 seconds.
“SPECS are not designed to replace the world,” Spiegel said. “They’re designed to bring computing into it.”
Powered by two Snapdragon processors, one for computer vision and one dedicated to running Lenses, SPECS enable high-speed hand tracking, lower latency, and more natural interactions. Verified by advanced robotic measurement systems, SPECS deliver 7-millisecond motion-to-photon latency, helping digital content feel anchored in the real world.
SPECS make augmented reality useful every day by bringing real-world tools, a large private display, and shared immersive experiences into the world around you. Directions, spatial measurements, and contextual AI assistance appear exactly when people need them. A large, private display makes it possible to stream content, cast a screen, open a whiteboard, or turn almost any place into a workspace. And hundreds of developer-built Lenses unlock shared experiences that screens cannot, from reading the green, to overlaying interactive lessons onto your drum set with Drum Kit, to education tools like Vector Fields that make invisible forces visible.
SPECS offer up to 4 hours of mixed-use battery life, including audio and video playback, Lenses, AI assistance, Bluetooth notifications, and more. The included charging case provides four additional charges on the go, delivering up to 20 total hours of mixed use.
“SPECS are the most capable and most wearable AR glasses ever built,” Spiegel said.
Snap also announced new tools for the SPECS developer ecosystem. Over the past year and a half, Snap has shipped 10 Snap OS updates with more than 40 new features and APIs, and developers have already published hundreds of Lenses for SPECS.
The company introduced agentic development for building SPECS Lenses in Lens Studio, designed to help developers explore ideas, prototype, test, debug, optimize, publish, and improve Lenses after launch. The developer preview is rolling out in Claude Code, Codex, and Cursor. Snap also announced the SPECS Spatial Benchmark to evaluate how AI models perform across real-world spatial tasks, the Migration Agent to help teams port existing projects to SPECS, and the Native Development Kit, enabling developers to bring their own code and libraries into Lens Studio.
“With SPECS, AI is not intelligence trapped in a chat box,” Spiegel said. “It is intelligence that can see what you see, understand what you’re trying to do, and help you in the moment.”
As SPECS bring computing into a more personal form factor, Snap emphasized its privacy-first approach. SPECS ask clearly before accessing sensitive information, include an LED light that glows when recording, prioritize on-device data processing, and give people control over what gets stored, synced, shared, or deleted.
“SPECS only work if people trust them,” Spiegel said. “Privacy has to be built in from the very beginning.”
Snap also unveiled a global SPECS campaign shot by legendary photographer Steven Meisel and featuring a group of creative visionaries, including Jimmy Butler, Imogen Heap, Hoyeon, Jack Harlow, and Kaia Gerber. Each Visionary has been working with Snap to imagine new SPECS experiences that will debut this fall.
“Together, we will create something truly special,” Spiegel said. “A future where computing empowers us, brings us closer together, and reconnects us with the world around us.”
About Snap Inc.
Snap Inc. is a technology company. We believe the camera presents the greatest opportunity to improve the way people live and communicate. Snap contributes to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together.
The Company operates Snapchat, a visual messaging app that enhances your relationships with friends, family, and the world, and Specs Inc., a wholly-owned subsidiary dedicated to making computing more human, in addition to Bitmoji, Saturn, and other digital services.
For more information, visit snap.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260612154498/en/
SPECS bring AI assistance, work tools, entertainment, and shared experiences into the world around you, so people can create, connect, learn, and get things done in the moment.
LOS ANGELES--(BUSINESS WIRE)--Snap Inc. (NYSE: SNAP) today unveiled SPECS, a wearable computer built into see-through augmented reality glasses. SPECS are available for pre-order today at SPECS.COM for $2,195 with a $200 refundable deposit, and are expected to ship this fall in the United States, United Kingdom, and France.
“SPECS are the beginning of a new era in computing,” said Evan Spiegel, co-founder and CEO of Snap Inc. “For decades, computers have asked us to look down, sit still, or step out of the moment. SPECS bring computing into the world around us where we live, work, learn, create, and connect.”
For more than a decade, Snap has invested across the full augmented reality stack including developer tools, a proprietary operating system, displays, optics, and computer vision, filing more than 7,000 patents to create technology that makes computing more human. With SPECS, that long-term vision moves from phones to glasses.
“The smartphone put our lives in our pockets,” Spiegel said. “SPECS put computing into the world, where life actually happens.”
Today’s devices force a tradeoff between capability and wearability. AI glasses are wearable, but limited in what they can do. Headsets are powerful, but can be uncomfortable to wear and shut people out of the world. SPECS represent a new category: more capable than AI glasses, more wearable than headsets, and fully standalone, with no puck or tether.
SPECS are built to be wearable for everyday life and capable of rich spatial computing. Crafted from high-performance Swiss TR90 polymer, SPECS are available in two sizes, with the 47 mm model weighing just 132 grams and the 52 mm model weighing 136 grams. Removable inserts support a wide range of prescriptions.
The glasses feature Snap’s proprietary liquid crystal on silicon display, with a 51-degree field of view and 16 million colors for sharper contrast and richer, smoother visuals. The field of view is equivalent to a 24-inch desktop display for work or up to a 115-inch home cinema screen placed about 10 feet away.
Snap redesigned the waveguide to deliver a clearer, more seamless view of the world with minimal distortion. Our new waveguide uses billions of invisibly small nanostructures, so small that more than 10,000 can fit on the tip of a single hair. Electrochromic lenses, inspired by the same advanced technology found in Boeing 787 Dreamliner windows, shift from clear to tinted in 10 seconds.
“SPECS are not designed to replace the world,” Spiegel said. “They’re designed to bring computing into it.”
Powered by two Snapdragon processors, one for computer vision and one dedicated to running Lenses, SPECS enable high-speed hand tracking, lower latency, and more natural interactions. Verified by advanced robotic measurement systems, SPECS deliver 7-millisecond motion-to-photon latency, helping digital content feel anchored in the real world.
SPECS make augmented reality useful every day by bringing real-world tools, a large private display, and shared immersive experiences into the world around you. Directions, spatial measurements, and contextual AI assistance appear exactly when people need them. A large, private display makes it possible to stream content, cast a screen, open a whiteboard, or turn almost any place into a workspace. And hundreds of developer-built Lenses unlock shared experiences that screens cannot, from reading the green, to overlaying interactive lessons onto your drum set with Drum Kit, to education tools like Vector Fields that make invisible forces visible.
SPECS offer up to 4 hours of mixed-use battery life, including audio and video playback, Lenses, AI assistance, Bluetooth notifications, and more. The included charging case provides four additional charges on the go, delivering up to 20 total hours of mixed use.
“SPECS are the most capable and most wearable AR glasses ever built,” Spiegel said.
Snap also announced new tools for the SPECS developer ecosystem. Over the past year and a half, Snap has shipped 10 Snap OS updates with more than 40 new features and APIs, and developers have already published hundreds of Lenses for SPECS.
The company introduced agentic development for building SPECS Lenses in Lens Studio, designed to help developers explore ideas, prototype, test, debug, optimize, publish, and improve Lenses after launch. The developer preview is rolling out in Claude Code, Codex, and Cursor. Snap also announced the SPECS Spatial Benchmark to evaluate how AI models perform across real-world spatial tasks, the Migration Agent to help teams port existing projects to SPECS, and the Native Development Kit, enabling developers to bring their own code and libraries into Lens Studio.
“With SPECS, AI is not intelligence trapped in a chat box,” Spiegel said. “It is intelligence that can see what you see, understand what you’re trying to do, and help you in the moment.”
As SPECS bring computing into a more personal form factor, Snap emphasized its privacy-first approach. SPECS ask clearly before accessing sensitive information, include an LED light that glows when recording, prioritize on-device data processing, and give people control over what gets stored, synced, shared, or deleted.
“SPECS only work if people trust them,” Spiegel said. “Privacy has to be built in from the very beginning.”
Snap also unveiled a global SPECS campaign shot by legendary photographer Steven Meisel and featuring a group of creative visionaries, including Jimmy Butler, Imogen Heap, Hoyeon, Jack Harlow, and Kaia Gerber. Each Visionary has been working with Snap to imagine new SPECS experiences that will debut this fall.
“Together, we will create something truly special,” Spiegel said. “A future where computing empowers us, brings us closer together, and reconnects us with the world around us.”
About Snap Inc.
Snap Inc. is a technology company. We believe the camera presents the greatest opportunity to improve the way people live and communicate. Snap contributes to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together.
The Company operates Snapchat, a visual messaging app that enhances your relationships with friends, family, and the world, and Specs Inc., a wholly-owned subsidiary dedicated to making computing more human, in addition to Bitmoji, Saturn, and other digital services.
Snap Inc. unveiled the company’s new “Specs” augmented-reality glasses on Tuesday with an eye-watering $2,195 price tag – and CEO Evan Spiegel is touting the devices as a potential replacement for smartphones.
The thick-framed black glasses were unveiled in a splashy celebrity marketing campaign that featured model Kaia Gerber, NBA star Jimmy Butler and rapper Jack Harlow.
Featuring about four hours of battery life, Specs will be capable running apps through an overlay that will blend seamlessly as the user goes about their daily life, according to Snap.
Model Kaia Gerber poses wearing Snap’s Specs. Steven Meisel / Snap Specs are “the beginning of a new era in computing,” Spiegel boasted.
“The smartphone put our lives in our pockets,” he said. “Specs put computing into the world, where life actually happens.”
Specs were made available for pre-order and are expected to ship to customers in the US, United Kingdom and France this fall. The $2,195 price include a $200 refundable deposit.
“Imagine walking through a city and seeing directions exactly where you need them, measuring a space without pulling out a tape measure, or getting help from AI while you’re working on a project instead of stopping to search for an answer. That’s what makes augmented reality different,” Snap says on the product’s website.
Snap shares were down more than 4% in Tuesday trading – a potential sign that Wall Street was skeptical about the announcement.
Snap is pushing into an increasingly crowded marketplace for AI wearables – and consumers have been slow to embrace the technology. Apple’s Vision Pro augmented-reality headset, which costs over $3,000, has yet to become a major sales driver for the tech giant.
Rapper Jack Harlow also participated in the launch campaign. Steven Meisel / Snap Meta, Snap’s main rival in the social media sector, sells its own smart glasses in collaboration with Ray-Ban but hasn’t yet launched augmented-reality rims. OpenAI is also developing some kind of AI-powered wearable device, though it’s unclear what form it will take.
Snap’s previous foray into smart glasses, the $130 Spectacles, were released in 2016 and never became a big hit with customers.
However, the company argues that Specs, which wre developed with a proprietary operating system and more than 7,000 patents, offer much more functionality to the public than other devices developed by rivals. Specs will be available in two sizes.
Specs will ship this fall. Snap “Today’s devices force a tradeoff between capability and wearability,” the company said in a press release.
“AI glasses are wearable, but limited in what they can do. Headsets are powerful, but can be uncomfortable to wear and shut people out of the world. Specs represent a new category: more capable than AI glasses, more wearable than headsets, and fully standalone, with no puck or tether.”
The glasses were unveiled at a precarious time for Snap, the stock of which has plummeted more than 30% since the start of the year and is now trading at under $6 per share.
Evan Spiegel is pushing Specs as a potential alternative to the smartphone. Getty Images for Snap In April, the company slashed about 1,000 jobs, or 16% of its overall workforce, and closed another 300 open roles. Spiegel said the belt-tightening effort was part of Snap’s effort to rely more heavily on AI tools to boost efficiency — the latest tech company to make that claim.
“While these changes are necessary to realize Snap’s long-term potential, we believe that rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers,” Spiegel said in a memo at the time.
Snap (SNAP 9.63%), a social-focused technology platform, closed Tuesday at $5.16, down 9.72%. The stock dropped during the regular session as investors reacted to the launch of $2,195 SPECS augmented reality glasses and CEO Evan Spiegel’s defense of heavy AR spending against activist pressure. Investors are also watching whether consumer demand will justify the investment. Trading volume reached 92.2 million shares, about 84% above its three-month average of 50.2 million shares. Snap IPO'd in 2017 and has fallen 79% since going public.
How the markets moved todayThe S&P 500 fell 0.55% to finish Tuesday’s session at 7,513, while the Nasdaq Composite declined 1.15% to close at 26,376. Within the internet content & information space, industry peers moved mixed as Meta Platforms closed at $600.21, up 1.13%, while Pinterest ended at $21.18, down 0.68%, highlighting divergent sentiment across social-media platforms.
What this means for investorsAugmented reality glasses continue to be one of the most hotly debated tech products. Will they, or won’t they, become a staple of our lives in the future? However, most market participants today decided that, whatever the outcome of augmented reality glasses becomes, Snap’s SPECS cost way too much, which prompted its shares to sell off today.
Priced at $2,195, SPECS cost roughly three times as much as Meta’s Ray Ban smart glasses and were called “heavier-looking” than traditional Ray Ban and Oakley glasses by market commentators. I support businesses trying new things, but a company going head-to-head with Meta and Alphabet (while still not at breakeven profitability due to massive stock-based compensation) isn’t something I’m interested in.
Down 79% since its IPO in 2017, Snap may be a classic example of an incredible product that just isn’t a great stock, at least yet.
Josh Kohn-Lindquist has positions in Alphabet and Pinterest. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Pinterest. The Motley Fool has a disclosure policy.
Snap finally unveiled its Specs AR glasses, and the $2,195 price tag is raising eyebrows By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Snap unveiled its Specs AR glasses with EyeConnect at a Long Beach conference. Joe Scarnici/Getty Images for Snap After more than a decade of work, Snap on Tuesday unveiled Specs, a new pair of augmented reality glasses with a price tag more commonly seen on a gaming PC or high-end TV: $2,195.
The launch marks Snap's biggest bet yet on a future where computing moves from smartphones to eyewear, a sentiment frequently shared by Mark Zuckerberg, who made the prediction that smart glasses will become the next major computing platform, much as smartphones displaced PCs as the primary way people access digital services.
Still, Specs cost far more than Meta's Ray-Ban smart glasses, which start around $350, though they're cheaper than Apple's $3,500 Vision Pro headset.
The usual AR features are expected: wearers will be able to record first-person footage, browse the web, and play games, along with a feature called "EyeConnect," which lets two wearers launch shared experiences simply by making eye contact.
Still, that might not be enough of a differentiator given the massive price tag.
"Snap Specs for $2,195 is an instant nope for 99% people," said Ray Wong, senior editor of Gizmodo, on X.
Raj Nijjer, the CMO of Symmetry Software, called the Specs "out of touch," while Riley Brown, a tech educator and startup founder, posted on X that the Specs would be "dead on arrival."
Each pair of Specs also weighs around 132 grams, nearly twice that of Meta's Ray-Bans, which weigh around 70 grams.
Snap's Specs cost $2,195 and will ship by fall 2026. Phillip Faraone/Getty Images for Snap Specs arrive as Meta has established an early lead with its Ray-Ban partnership, while Google recently unveiled its own AI-powered eyewear plans.
A problem dogging the tech is that no one has cracked the economics. Meta's Reality Labs division, the unit responsible for its VR headsets, AR glasses, and metaverse ambitions, has become one of the most expensive bets in tech. Since 2020, the division has racked up tens of billions of dollars in operating losses, including more than $17 billion in 2024 alone.
Snap has also been facing mounting challenges. The company has spent years trying to turn its AR vision into a sustainable business while navigating a volatile advertising market, slowing user engagement in the US, and a stock price that remains well below its pandemic-era highs.
Earlier this year, Snap spun off a separate company focused on bringing Specs to market. In April, Snap also conducted a round of layoffs as it continued efforts to streamline operations and control costs.
If you're convinced Specs are worth the price tag, preorders open on June 16 with a $200 refundable deposit, and shipping will begin this fall in the US, UK, and France.
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Katherine Li You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Snap CEO Evan Spiegel reveals new Specs AR smart glasses at the Augmented World Expo in Long Beach, California. Read more about Snap's Specs Smart Glasses on CNET.com Snap's New Specs Are Chunky, Pricey and I Really Need to Try Them https://zdcs.link/a5jJL5 0:00 Introduction & Reveal 1:05 Hardware, Weight & Prescriptions 1:57 Display Tech & Field of View 3:15 Electrochromic Lenses & Transparency 3:52 Processors & 7ms Latency 5:04 Real-World Tools & Translation 5:49 Private Display & Workspace Features 6:44 AR Lenses in Action 7:38 Battery Life & Charging Case 9:22 Privacy & Security Features 9:47 Price, Pre-order & Shipping Info Add CNET as a trusted news source https://www.google.com/preferences/source?q=cnet.com Never miss a deal again!
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
In the latest trading session, Snap (SNAP - Free Report) closed at $5.26, marking a -1.31% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.5%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.31%.
Shares of the company behind Snapchat witnessed a loss of 0.56% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.42%, and the S&P 500's loss of 0.23%.
The upcoming earnings release of Snap will be of great interest to investors. The company is predicted to post an EPS of $0.07, indicating a 800% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.53 billion, showing a 13.99% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.6 per share and revenue of $6.7 billion. These totals would mark changes of +81.82% and +12.91%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 12.77% higher. Snap currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Snap is currently exchanging hands at a Forward P/E ratio of 8.94. For comparison, its industry has an average Forward P/E of 18.49, which means Snap is trading at a discount to the group.
Meanwhile, SNAP's PEG ratio is currently 0.17. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.01.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
The allure of low stock prices is obvious, but also potentially dangerous. A lot of stocks with single-digit stock prices are there for a reason. Many of them are also small or iffy outfits that are more likely to continue getting cheaper in the future.
I think I have some ideas that will fare well, and these companies are small -- but not tiny. Archer Aviation (ACHR 4.06%), Snap (SNAP 1.31%), and Stubhub (STUB +7.91%) all have market caps of at least $2 billion. These are the three stocks under $10 that I think are worth buying in May.
Image source: Getty Images.
1. Archer Aviation Like the promise of its speedy short-haul flights, Archer Aviation stock has its ups and downs. The market is just starting to crystallize for electric vertical takeoff and landing (eVTOL) aircraft. Archer and rival Joby Aviation (JOBY 2.24%) have captured investor interest ahead of the scaling of their businesses.
There has been some turbulence. Near-term revenue targets have been pared back by Wall Street pros as the industry gets ready to take off, literally and figuratively. The next few years should see a pretty dramatic top-line ramp-up based on current analyst projections.
2026: $14 million 2027: $114 million 2028: $512 million 2029: $1,609 million
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Archer's Midnight aircraft has a clear path on the growth runway when it does get rolling. Its high-end air taxi service has attracted airline carriers as partners. It will be the official air taxi provider for the 2028 Olympic Games, even buying a small regional airport near Los Angeles International Airport to make sure it can handle its moment in the spotlight. Even the U.S. Air Force is exploring the potential of Archer's aircraft for military missions.
It will take a few years for Archer to become profitable, and it will remain a high-beta stock. However, with higher annual revenue forecasts than Joby starting in 2028 -- but trading at a third of the enterprise value -- this Archer is primed to hit its target when it's time to let the arrows fly.
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2. Snap It's fair to say that Snapchat's parent company Snap isn't as popular as other visual social hubs like Instagram, TikTok, or YouTube. It's probably still more popular than you think.
Did you know that there are 956 million monthly active users on Snapchat? The platform that made filters or augmented reality lenses cool is also still growing. The audience has grown by 5% over the past year. Tack on a 7% increase in average revenue per user, and Snap's revenue rose 12% in its latest quarter. It posted back-to-back years of double-digit revenue growth before that. Wall Street pros see low double-digit growth through at least the next couple of years.
Reported profitability has been a problem, but the losses are narrowing. Analysts see Snap turning a profit by next year. It's generating healthy and positive free cash flow, more than doubling in its latest quarter. On an adjusted basis, Snap stock is actually cheap. The shares are trading for 10 times forward adjusted earnings and just 8 times next year's target.
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3. StubHub The popular online marketplace for resale tickets to concerts and sporting events has undergone a few ownership changes over the years. It went public in its present form at $23.50 a share just eight months ago. Since it's on the list of stocks below $10, you already know it has not gone well for its IPO investors.
StubHub has shed nearly two-thirds of its value since going public, but it's been rallying in recent weeks. It wound up on the favorable side of two legal rulings. One win was just StubHub settling a lawsuit alleging that it wasn't disclosing customer costs up front. The hub settled with the Federal Trade Commission for a reasonable $10 million. The other courtroom win came in a case for rival Live Nation (LYV +0.10%). The jury in that case found it liable for monopolistic pricing, and now some states want Live Nation separated from its Ticketmaster subsidiary.
There is still a potentially catastrophic legal headwind for StubHub. The United Kingdom and some Canadian provinces have moved to prevent platforms from selling event tickets above face value. This is naturally the lion's share of any third-party marketplace, so StubHub's business model is at risk if this continues to gain traction closer to home.
It's not the only thing holding StubHub back. After four years of heady growth, revenue dipped 1% last year. If inflation and gas prices keep revving higher, there will likely be less money spent on live events. The good news -- if you stomach the risk of court-mandated obsolescence -- is that you can buy StubHub for just six times next year's projected earnings.
Have you evaluated the performance of Snap's (SNAP - Free Report) international operations during the quarter that concluded in March 2026? Considering the extensive worldwide presence of this company behind Snapchat, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
In our recent assessment of SNAP's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $1.53 billion, marking an increase of 12.2% from the year-ago quarter. We will next turn our attention to dissecting SNAP's international revenue to get a clearer picture of how significant its operations are outside its main base.
A Closer Look at SNAP's Revenue Streams AbroadOf the total revenue, $323.85 million came from Europe during the last fiscal quarter, accounting for 21.2%. This represented a surprise of +21.94% as analysts had expected the region to contribute $265.57 million to the total revenue. In comparison, the region contributed $341.13 million, or 19.9%, and $224.02 million, or 16.4%, to total revenue in the previous and year-ago quarters, respectively.
Rest of World accounted for 23.1% of the company's total revenue during the quarter, translating to $353.69 million. Revenues from this region represented a surprise of -2.91%, with Wall Street analysts collectively expecting $364.28 million. When compared to the preceding quarter and the same quarter in the previous year, Rest of World contributed $349.83 million (20.4%) and $307.51 million (22.6%) to the total revenue, respectively.
Prospective Revenues in International MarketsWall Street analysts expect Snap to report $1.54 billion in total revenue for the current fiscal quarter, indicating an increase of 14.5% from the year-ago quarter. Europe and Rest of World are expected to contribute 20.3% (translating to $311.9 million), and 20.1% ($309.95 million) to the total revenue, respectively.
For the entire year, the company's total revenue is forecasted to be $6.73 billion, which is an improvement of 13.4% from the previous year. The revenue contributions from different regions are expected as follows: Europe will contribute 19.7% ($1.32 billion), and Rest of World 21.4% ($1.44 billion) to the total revenue.
Closing RemarksSnap's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
At present, Snap holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Exploring Recent Trends in Stock PriceThe stock has increased by 26.1% over the past month compared to the 9.1% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Snap,has increased 19.1% during this time frame. Over the past three months, the company's shares have experienced a gain of 25.9% relative to the S&P 500's 7.1% increase. Throughout this period, the sector overall has witnessed a 17.5% increase.
Concept of augmented reality technology being used in futuristic smart tech glasses
getty
Snap’s first-quarter results gave investors something they have not always had from the company: evidence of operating discipline.
Revenue rose 12% year-on-year to $1.53 billion. Daily active users returned to growth, reaching 483 million. Adjusted EBITDA more than doubled to $233 million, while free cash flow climbed to $286 million. Net loss narrowed to $89 million.
On the surface, this was a cleaner Snap story: stronger engagement, better margins and a more credible path toward sustained cash generation.
But the more important strategic question sits outside the quarter. Snap is still asking investors to believe in Specs, its augmented reality glasses that are a bid to compete with Meta, Apple and Google for the next consumer computing surface.
Evan Spiegel used the results to reaffirm Snap’s commitment to “intelligent eyewear,” saying the company would keep investing in Specs and share more at AWE on June 16. Snap also pointed to an expanded Qualcomm collaboration, growth in Specs Lens creation, and use cases across learning, gaming and AI-powered experiences.
Why Snap Is Betting On Specs AR GlassesSpecs is Snap’s attempt to define the next computing interface before Apple, Meta or Google fully normalize it. Snap argues that it already owns several ingredients that should matter in AR: the camera habit, a large visual messaging network, a Lens creator ecosystem and a young audience comfortable using the camera as a communication layer.
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If augmented reality moves from the phone screen to the face, Snap wants to be more than an app inside someone else’s operating system. That is also what makes Specs vulnerable.
Specs Inc. And Irenic Capital’s Activist PressureIn January, Snap established Specs Inc. as a wholly-owned subsidiary, telling investors the structure “enables new partnerships and capital flexibility including the potential for minority investment” and “supports clearer valuation of the business.” The subsidiary was an acknowledgement that Specs needs to be financed and valued differently from the core advertising and subscription business.
Activist investor Irenic Capital took that signal further, urging Snap to spin off or shut down Specs.
Snap’s response, set out in an 8-K filing on 15 April, was a different kind of discipline: approximately 1,000 team members cut, 16% of full-time employees, more than 300 open roles closed and an annualized cost reduction of more than $500 million by the second half of 2026. The cuts created room for the conviction instead of retreating from it.
So the central tension in Snap’s Q1 is not whether the company is improving. It is whether that improvement earns management the right to keep funding one of the most speculative bets in consumer technology.
For shareholders aligned with Irenic, Specs can look like capital misallocation dressed up as vision. For Snap, abandoning it carries a different risk. The company remains subscale against Meta and Google in advertising and exposed to platform shifts it does not control. A successful AR glasses platform would give Snap something more defensible: a hardware-software interface built around the camera, not just another ad product inside a crowded social market.
The better question, then, is not whether Specs is expensive. By any reasonable measure, it is. The question is whether Snap can turn operating discipline into strategic permission.
Can AR Lenses scale into a real platform?Q1 helps Spiegel’s case. Snap showed stronger cash generation, tighter cost control and continuing AR engagement, with Snapchatters using AR Lenses more than 9 billion times per day on average and more than 400,000 Lenses submitted in the quarter, up more than 150% year-on-year.
But activist pressure means the clock is now louder. Specs does not need to become a mass-market hit immediately. It does need to prove that Snap’s AR advantage can travel from playful lenses to a developer platform with use cases, distribution and eventual monetization.
That is the real bet inside Snap’s earnings: not just that the company can recover, but that recovery can buy it enough time to invent what comes next.
Meta Platforms: Evaluating Revenue ExpansionMeta Platforms (META 0.14%) primarily generates revenue through advertising, and by offering digital communication applications and virtual reality hardware to users worldwide.
It recently expanded an infrastructure partnership with Broadcom to develop custom hardware for its operations, and it reported an approximately 48% net income margin for the quarter ended March 31, 2026.
Snap: Navigating Revenue FluctuationsSnap (SNAP 1.31%) operates a visual communication application and provides wearable camera products and advertising services globally.
It announced a strategic agreement with Qualcomm to power future generations of its wearable hardware, while posting an approximately negative 6% net income margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue serves as a foundational metric that shows investors the total amount of money a business brings in before operating expenses are deducted. This helps investors gauge raw business scale and growth.
Image source: The Motley Fool.
Quarterly Revenue for Meta Platforms and SnapQuarter (Period End)Meta Platforms RevenueSnap RevenueQ2 2024 (June 2024)$39.1 billion$1.2 billionQ3 2024 (Sept. 2024)$40.6 billion$1.4 billionQ4 2024 (Dec. 2024)$48.4 billion$1.6 billionQ1 2025 (March 2025)$42.3 billion$1.4 billionQ2 2025 (June 2025)$47.5 billion$1.3 billionQ3 2025 (Sept. 2025)$51.2 billion$1.5 billionQ4 2025 (Dec. 2025)$59.9 billion$1.7 billionQ1 2026 (March 2026)$56.3 billion$1.5 billionData source: Company filings. Data as of May 10, 2026.
Foolish TakeComparing the revenue for Meta Platforms and Snap reveals insightful trends. Both operate in the social media space, rely heavily on digital advertising for income, and are experiencing rising revenue. Beyond that, their stories diverge.
Meta is seeing spectacular sales growth. Its first quarter revenue of $56.3 billion represented a 33% year-over-year jump. Compare that to Snap’s 12% Q1 sales increase to $1.5 billion, which is a solid result, but not the outsized performance delivered by Meta.
The Facebook parent’s enormous revenue increase shows its business strategies are working. Meta invested heavily in artificial intelligence in recent years, and its strong sales suggests AI is helping.
The company has also extended its AI use into hardware with virtual reality headsets and AI-infused sunglasses. The latter saw the number of people using them triple year over year in Q1.
Snap’s sales trend indicates the company is growing. Its daily active users rose 5% year over year in Q1.
However, unlike Meta, Snap isn’t profitable, posting a Q1 net loss of $89 million. Its modest revenue gains contrasted against unprofitable operations is concerning when AI is expensive technology to implement.
Snap’s sales trend reveals its use of AI to date hasn’t supercharged its income to the same degree as Meta. Unless revenue starts to accelerate, as an unprofitable enterprise, investing in Snap stock is not as appealing as owning shares in Meta.
Robert Izquierdo has positions in Broadcom, Meta Platforms, and Qualcomm. The Motley Fool has positions in and recommends Broadcom, Meta Platforms, and Qualcomm. The Motley Fool has a disclosure policy.
Teenagers pose for a photo while holding smartphones in front of a Youtube logo in this illustration taken September 11, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
May 15 (Reuters) - Alphabet's (GOOGL.O), opens new tab YouTube, Snap (SNAP.N), opens new tab and TikTok have reached settlements in the first case set for trial in litigation seeking to force social media platforms to cover the costs school districts incur to combat a youth mental health crisis they say the companies fueled.
The settlements were detailed in court filings on Friday in federal court in Oakland, California, and resolve claims by a Kentucky school district that is still due to take Facebook and Instagram parent Meta Platforms (META.O), opens new tab to trial on June 15.
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Terms of the settlements with Breathitt County School District in rural Eastern Kentucky were not disclosed.
"This matter has been amicably resolved and our focus remains on building age-appropriate products and parental controls that deliver on that promise," a YouTube spokesperson said in a statement.
Snap, the parent company of Snapchat, said it resolved the case amicably. TikTok did not immediately respond to a request for comment.
More than 3,300 lawsuits involving addiction claims are pending in California state court against the social media companies. Another 2,400 cases brought by individuals, municipalities, states and school districts have been centralized in California federal court.
In a landmark trial, a Los Angeles jury on March 25 found Meta and Alphabet's Google negligent for designing social media platforms that are harmful to young people. It awarded a combined $6 million to a 20-year-old woman who said she became addicted to social media as a child.
The companies have denied the allegations and say they take extensive steps to keep teens and young users safe on their platforms.
Breathitt is one of about 1,200 school districts suing the social media companies over claims they caused a mental health crisis among students and then saddled schools with the fallout.
The school district has been seeking over $60 million to cover the costs of counteracting social media's impact on students’ mental health and to fund a 15-year mental health program to abate the problem.
It also seeks a court order requiring the companies to modify their platforms to reduce addictive features.
Its case is a bellwether, or test case, for over a thousand similar school districts' lawsuits.
Judges and attorneys often use bellwether verdicts to assess the potential value of remaining claims and guide settlement talks. Typically, several bellwether cases are tried before reaching a broader resolution.
Reporting by Diana Novak Jones in Chicago and Nate Raymond in Boston; Editing by Tom Hogue
Our Standards: The Thomson Reuters Trust Principles., opens new tab
It's been a tough ride for long-term Snap (SNAP 1.31%) investors. Once touted as a close rival to Meta Platforms' Instagram, the relatively small social media company remains unprofitable and is down by more than 30% year to date. Investors who are betting on a turnaround may want to cut their losses and review other investment opportunities.
Growth is slow and profits are nonexistent Snap's revenue trajectory does not reflect what investors have come to expect from unprofitable, high-stakes companies. The social media company only has an annualized 8.8% revenue growth rate over the past three years. That's much lower than Meta Platforms' 19.9% compound annual growth rate (CAGR) over the same stretch.
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It's impossible to even compare the two tech companies anymore. A few years ago, investors would look at Snap's earnings to gauge how Meta Platforms would perform, and vice versa. Few investors do that anymore. Meta Platforms earned more than $200 billion in revenue over the past year, while Snapchat generated less than $10 billion over the same stretch.
Image source: Getty Images.
The better comparison is Pinterest, but even then, it grows faster and actually makes a profit. Snap reported an $89 million net loss in the first quarter. It's still unprofitable almost 15 years after its launch, but it's not posting the type of revenue growth that warrants waiting for a flip to profitability.
Snap has limited ways to fuel meaningful improvements Snap wrapped up Q1 with 956 million monthly active users, up 5% year over year. The company touted it as a win and a return to positive monthly active user growth. However, Snap must increase its average revenue per user to maintain its status as a growth stock, but it hasn't made sizable progress on that front.
Sponsored Snaps were a bright spot, as that segment generated a 226% year-over-year increase in per-impression clickthrough rates, but 12% overall revenue growth is nothing to write home about for a company that lacks profitability.
Snap's outlook suggests Q2 revenue of $1.535 billion, a 14.6% year-over-year increase. That's good, but it also suggests flat sequential growth. Revenue isn't budging by much quarter over quarter.
Meaningful growth rates remain an issue, and Snap is competing with social media giants that are gaining market share faster. Instagram and TikTok are both more popular than Snapchat. Users are gravitating toward those apps, and advertisers are following consumers.
Strong competition and a history of low growth rates don't bode well for Snap shareholders. Perhaps investors would be more patient with Snap if it were producing 20% to 30% year-over-year revenue growth at this stage, as Meta Platforms is doing right now.
Shares of Pinterest (NYSE:PINS | PINS Price Prediction) are down 6% in midday trading on Tuesday, changing hands near $18.75. The selling is sharper than what’s happening at the rest of the social media group, with Meta Platforms (NASDAQ:META) off 1% and Snap (NYSE:SNAP) lower by 2%.
The move extends an ugly stretch for Pinterest stock. Shares are down 28% year to date and 42% over the past year, well off the levels Pinterest held heading into February’s Q4 2025 report.
The longer-term picture is messier still. Pinterest stock is down 68% over five years, a chart pattern that points to structural issues, not just a bad Tuesday.
Why PINS Is Lagging the Group Today Today’s drop lacks a single confirmed catalyst. Pinterest is bearing the brunt of broader social media weakness because it sits at the intersection of several pressure points investors are reassessing.
The biggest is competition for visual discovery. Instagram Reels, TikTok, and YouTube Shorts have steadily encroached on the “ideas and inspiration” use case Pinterest pioneered, and generative AI tools like Google AI Overviews and ChatGPT visual search threaten to absorb the top-of-funnel search behavior that drives engagement.
Monetization is the other concern. Pinterest’s Q1 2026 guidance of $951 million to $971 million implies 11% to 14% growth, well below Meta Platforms’s Q1 2026 revenue growth of 33%. When budgets tighten, brand ad dollars tend to consolidate with Meta and Alphabet (NASDAQ:GOOGL), leaving Pinterest more exposed.
Putting the Three Stocks Side by Side Today’s headline reads “Pinterest is trailing,” but the longer windows tell a more nuanced story. SNAP stock has actually been the worst performer year to date and over five years, even though it’s holding up better than Pinterest in today’s session.
Stock Today YTD 1-Year 5-Year PINS -6% -28% -42% -68% META -1% -7% -4% +96% SNAP -2% -30% -35% -89% Meta Platforms is the clear quality name in the group, with operating leverage from its “year of efficiency.” The platform reports Q1 2026 revenue growth of 33% and multiple growth surfaces from Reels to WhatsApp to its Llama AI stack.
Snap’s relative resilience today is partly mechanical. After years of underperformance, the bear case is largely priced in, leaving less room for fresh sentiment damage. Pinterest, by contrast, still has investors actively repricing the franchise.
The Bull Case for Pinterest Hasn’t Disappeared It’s worth noting that Pinterest remains a viable franchise. The platform still posted 619 million global monthly active users, up 12% year over year, and processed more than 80 billion monthly searches with strong commercial intent.
Pinterest’s free cash flow remains healthy at $380 million in Q4 2025, and the company repurchased $927 million of stock for the full year. CEO Bill Ready stated the company is “laser-focused on execution and transforming our sales and go-to-market efforts so monetization better reflects the valuable commercial intent we see on Pinterest.”
Pinterest’s international monetization is also accelerating, with Europe revenue up 25% and Rest of World up 64% last quarter. Those are the data points that the bulls will want to keep an eye on.
What to Watch Prudent investors should track whether Pinterest stock can stabilize near current levels, or whether today’s break extends into a deeper retest of the $15.18 level seen after the Q4 2025 report. A close back above $20 would help reset the technical tone.
The next real information catalyst is management’s commentary on user growth, AI search competitive impact, and advertiser concentration. Until those data points improve, expect Pinterest to remain the high-beta name in any social media drawdown.
Key Takeaways Reddit's Q1 2026 ARPU rose 44% year over year to $5.23 on stronger monetization. RDDT saw active advertisers jump 75% and performance ads exceed 60% of ad revenue. Reddit's international revenue surged 74.7% in Q1 2026, while international ARPU climbed 51%. Reddit (RDDT - Free Report) is benefiting from solid growth in Average Revenue Per User (ARPU), which is emerging as a key growth driver for the company. In the first quarter of 2026, ARPU increased 44% year over year to $5.23, indicating that portfolio expansions are driving higher monetization per user.
Reddit’s unique community-driven model also plays a significant role. With nearly 500 million weekly users globally and 200 million in the United States, Reddit’s deeply engaged user base generates high-intent, authentic conversations. Around 40% of conversations on Reddit are commercial in nature, and 84% of shoppers report feeling more confident in their decisions after researching on Reddit. This high level of commercial intent has further boosted ARPU.
The company’s focus on expanding its advertiser base and introducing new ad formats, such as Dynamic Product Ads, has also contributed to ARPU growth. In the first quarter of 2026, the number of active advertisers grew more than 75% year over year, and performance-oriented revenue now represents more than 60% of total ad revenue.
Reddit’s ARPU growth is supported by its expanding advertiser base and improved ad automation. The company has integrated more automation and AI into its ad platform through the launch of Reddit Max, which enables advertisers to achieve better performance with less manual input. Advertisers using Max campaigns have seen a 17% reduction in cost per action and 25% more conversion outcomes.
Reddit’s international expansion has also played a pivotal role in boosting ARPU. In the first quarter of 2026, International revenues soared 74.7% year over year to $138 million. International ARPU increased 51% year over year to $2.02, signaling improving monetization intensity across regions.
RDDT Faces Stiff CompetitionRDDT is facing stiff competition from competitors like Pinterest (PINS - Free Report) and Snap (SNAP - Free Report) . Both Pinterest and Snap are also expanding their footprint into advertising to compete in the rapidly growing digital ad market.
Pinterest is seeing strong user engagement in all regions. In the first quarter of 2026, Pinterest’s global ARPU stood at $1.61 compared with the year-ago quarter’s figure of $1.52. ARPU in Europe improved 17% year over year to $1.17, while the United States and Canada rose 9% year over year to $7.12. ARPU from the Rest of World increased 38% year over year to 20 cents.
Snap is seeing steady user engagement. In the first quarter of 2026, Snap’s ARPU increased 7% year over year to $3.17. North America's ARPU climbed 10% to $9.23, while Europe’s ARPU surged 48% to $3.34. ARPU for the Rest of World rose 3% year over year to $1.20.
RDDT’s Share Price Performance, Valuation, and EstimatesRDDT shares have plunged 32.6% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector's increase of 16% and the Internet - Software industry’s decline of 13.2%.
RDDT Stock's Performance
Image Source: Zacks Investment Research
RDDT shares are overvalued, with a forward 12-month Price/Sales of 8.15X compared with the Computer & Technology sector’s 6.78X. RDDT has a Value Score of D.
RDDT's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $4.83 per share, which has increased 21% over the past 30 days. This suggests 84.35% year-over-year growth.
RDDT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SANTA MONICA, Calif.--(BUSINESS WIRE)--Snap Inc. (NYSE: SNAP) announced today that Luke Wood, former President of Beats by Dr. Dre and Vice President at Apple Inc., has been appointed to the company’s board of directors, effective as of May 20, 2026.
“We are excited to welcome Luke to Snap’s board,” said Evan Spiegel, co-founder and Chief Executive Officer of Snap Inc. “Luke has helped build and scale iconic products and brands at the intersection of technology and culture, and we look forward to benefiting from his insights.”
“Luke’s creative and operating experience will bring a valuable perspective to our board,” said Michael Lynton, Chairperson of the board of directors of Snap Inc. “We are pleased to welcome him and look forward to his contributions in the years ahead.”
“I’m thrilled to join Snap’s board at such an exciting time for the company,” said Wood. “Snap has a strong track record of innovation, and I look forward to working with Evan, Michael, and the other directors.”
Mr. Wood, age 57, is a co-founder and has served as Chief Executive Officer of Violet St Holdings, LLC since September 2022. From August 2014 to April 2020, Mr. Wood served as President of Beats by Dr. Dre and as a Vice President at Apple Inc. following Apple’s acquisition of Beats. Prior to that, he served as President of Beats by Dr. Dre from February 2011 to August 2014. Earlier in his career, Mr. Wood held various leadership positions at Interscope Geffen A&M and imprint DGC Records. Mr. Wood currently serves as a member of the board of directors of Fender Musical Instruments Corp. He holds a B.A. in American Studies from Wesleyan University.
About Snap Inc.
Snap Inc. is a technology company. We believe the camera presents the greatest opportunity to improve the way people live and communicate. We contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together. For more information, visit snap.com.
Shares of Snap (SNAP - Free Report) have gained 2.2% over the past four weeks to close the last trading session at $5.69, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $7.87 indicates a potential upside of 38.3%.
The mean estimate comprises 35 short-term price targets with a standard deviation of $2.35. While the lowest estimate of $5.75 indicates a 1.1% increase from the current price level, the most optimistic analyst expects the stock to surge 163.6% to reach $15.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in SNAP. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SNAP Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, six estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 44.1%.
Moreover, SNAP currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SNAP could gain, the direction of price movement it implies does appear to be a good guide.
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Block CEO Jack Dorsey, Salesforce CEO Marc Benioff, IBM CEO Arvind Krishna (left to right). Joe Raedle/Getty Images, AP Photo/Markus Schreiber, Sajjad Hussain/Getty Images Worries about AI one day replacing human workers have intensified recently — and as it turns out, that future may be here.
A number of companies have recently announced staff cuts and cited AI efficiencies as a major rationale.
A March report from career transition firm Challenger, Gray, and Christmas found that, so far this year, AI has been cited in 8% of job-cut plans.
Amid this rash of layoffs, some have asked whether AI is replacing so many roles once held by humans or whether some degree of "AI washing" is at work. OpenAI's Sam Altman said some companies are blaming AI for layoffs that would've happened regardless.
An MIT study released last year said that 95% of corporate AI investments have generated "zero return" so far.
As some companies replace human workers with the technology, they may end up hiring more people because of it — or rehiring at least some of the roles they eliminated. A 2025 survey conducted by consulting firm Robert Half found that 29% of 2,000 hiring managers said they reopened positions that had been previously got rid of after implementing AI.
Here's a list of companies that have done AI-related layoffs:
Angi
Angi said it was cutting 350 jobs in January. Bloomberg/Getty Images Angi, the popular contractor listing site previously known as Angie's List, said in January that it was cutting roughly 350 jobs in part because of "AI-driven efficiency improvements."
The company added that the cuts were part of a plan "to reduce operating expenses and optimize the organizational structure in support of long-term growth."
Atlassian
Atlassian CEO Mike Cannon-Brookes. Brendan McDermid/Reuters Atlassian announced cuts of 1,600 jobs in March, totaling about 10% of its global workforce. The move comes as the Australian-American software company says it is restructuring to focus on AI and enterprise growth.
In a filing with the US Securities and Exchange Commission, the company said the reduction was part of a broader effort to reposition the business for what CEO Mike Cannon-Brookes described as the "AI era."
"It would be disingenuous to pretend AI doesn't change the mix of skills we need or the number of roles required in certain areas. It does," Cannon-Brookes wrote in a message to employees.
On the "20VC" podcast in October last year, prior to the cuts, Cannon-Brookes said he planned to have more engineers at the company in five years.
"They will be more efficient, but technology creation is not output-bound," Cannon-Brookes said.
Block
Block CEO Jack Dorsey. Joe Raedle/Getty Images In a post on X in February, billionaire and Block CEO Jack Dorsey said he was slashing nearly half of Block's workforce, cutting its over 10,000-person staff to under 6,000. The move came as he said business was strong and profits were growing, but a new way of working was emerging.
"We're already seeing that the intelligence tools we're creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company," Dorsey said in his memo on X.
In the company's earnings call following the memo, Dorsey said that more companies will follow suit by using AI to drive efficiency gains. Block is already ahead of the trend that "all companies will eventually" adopt, the CEO said.
Cisco
Cisco CEO Chuck Robbins announced on May 13 that the company would lay off about 4,000 employees. Kent NISHIMURA / AFP via Getty Images Cisco said on May 13 that it would cut "fewer than 4,000 jobs" as the networking company reorganizes around artificial intelligence, according to a memo CEO Chuck Robbins sent to employees.
"The companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long-term value creation are strongest," Robbins said in the memo. "This means making hard decisions — about where we invest, how we're organized, and how our cost structure reflects the opportunity in front of us."
The layoffs, which account for less than 5% of Cisco's workforce, were announced alongside a stronger-than-expected third-quarter earnings report in which the company raised its revenue outlook amid surging demand for AI infrastructure.
In the memo, Robbins said Cisco is redirecting investments toward areas "where demand and long-term value creation are strongest," including silicon, optics, security, and employees' use of AI across the company.
Cloudflare
Cloudflare CEO Matthew Prince. IMF Cloudflare announced on May 7 that it will be slashing more than 1,100 roles as it reorganizes for the "agentic AI era." The cybersecurity company said in a memo that its AI usage has increased by over 600% in the last three months, and employees across departments run thousands of agent sessions each day.
"That means we have to be intentional in how we architect our company for the agentic AI era in order to supercharge the value we deliver to our customers," the company said in the memo to staff.
Cloudflare CEO Matthew Prince responded to a critical post on X, saying that "very few engineers or customer-facing sales people impacted by our layoff."
He wrote that the company will continue to hire "like crazy in those roles," as it did as a startup. Cloudflare employed 5,483 people as of the end of March, meaning the cuts affected about 20% of its workforce.
Coinbase
Coinbase CEO Brian Armstrong. Bloomberg/Getty Coinbase CEO Brian Armstrong announced that the company will be slashing 14% of its workforce, or about 700 workers.
In a post on X on May 5, Armstrong shared an email that he said he sent to workers earlier that day. In the post, he cited two factors: a volatile market and AI changing the way people work.
"Over the past year, I've watched engineers use AI to ship in days what used to take a team weeks," Armstrong said, adding that, "the pace of what's possible with a small, focused team has changed dramatically."
Armstrong said the company isn't just reducing head count and cutting costs, but "fundamentally changing" the way it operates. The CEO said Coinbase is rebuilding itself "as an intelligence, with humans around the edge aligning it."
He shared plans to concentrate the workforce around AI-native pods that will manage fleets of agents. Armstrong said the company will also experiment with "one person teams" of engineers, designers, and product managers.
Crypto.com
Kris Marszalek announced 12% cuts at Crypto.com on March 19. Marco Bello/Reuters Crypto.com announced on March 19 that it would cut 12% of its staff. The CEO, Kris Marszalek, wrote in a post on X that those impacted were in "roles that do not adapt in our new world."
"We are joining the list of companies integrating enterprise-wide AI," Marszalek wrote on X. "Companies that move immediately and pair the best AI tools with top-performers will achieve a level of scale and precision that was previously impossible. This is where we must go."
The company previously cut jobs in 2022 during a cryptocurrency slump and another 20% of its workforce in 2023, following the collapse of FTX.
GitLab
GitLab said it is cutting 350 employees. Joan Cros/NurPhoto via Getty Images On a June 2 earnings call, GitLab said it is cutting 350 employees, or about 14% of its workforce, as part of an overhaul it announced last month.
The coding software company, which had 2,580 employees as of January, said in May that it was restructuring to meet the "agentic era." GitLab added that it wanted to remove up to three layers of management and reinvest savings from the restructuring into internal AI resources.
The company said it also expects to exit 22 countries and reduce its team members' geographic footprint by about 37%, opting for customers in those regions to be served by partners.
In June 2025, GitLab's chief financial officer, Brian Robins, said that AI coding has been good for its business, as customers added more employees to their subscriptions and produced more code, which GitLab's services help manage.
HP
HP CEO Enrique Lores. HP Inc. HP said it's reducing the size of its corporate workforce due to AI initiatives. In an earnings report last November, the company said it plans to cut between 4,000 and 6,000 jobs by the end of 2028, estimating the changes would save around $1 billion.
HP's earnings presentation at the time said part of its strategy was to cut costs through "workforce reductions, platform simplification, programs consolidation, and productivity measures" and to increase customer satisfaction, innovation, and productivity with "artificial intelligence adoption and enablement."
IBM
IBM's CEO has said the company has replaced hundreds of employees with AI. Sajjad Hussain/Getty Images Arvind Krishna, CEO of IBM, told The Wall Street Journal last year that it had replaced hundreds of human resources employees with AI.
More recently, the company announced last November that it would cut thousands of workers in the fourth quarter of 2025, affecting a "single-digit percentage of its global workforce." Its CEO, Arvind Krishna, said the company is shifting priorities to hire more people around AI and quantum. He also said the company plans to increase hiring among recent college graduates over the next year.
Krishna has also said that AI adoption has led the company to hire more employees in programming and sales.
In 2023, Krishna told Bloomberg that IBM had halted or slowed hiring for back-office roles, like in human resources, that could be replaced by AI.
"I could easily see 30% of that getting replaced by AI and automation over a five-year period," he told the outlet at the time.
Salesforce
Salesforce CEO Marc Benioff. AP Photo/Markus Schreiber Salesforce cut fewer than 1,000 workers in February, including employees from marketing, product management, data analytics, and its Agentforce AI product.
In an episode of "The Logan Bartlett Show" released last August, Salesforce CEO Marc Benioff said the company was using AI agents in its customer support division to replace humans and handle more sales leads.
"I was able to rebalance my head count on my support," he said in the interview. "I've reduced it from 9,000 heads to about 5,000 because I need less heads."
A Salesforce spokesperson previously told Business Insider that Benioff was referring to an organizational transformation that took place over several months to reshape its customer support function.
After deploying Agentforce, the company no longer needed to "actively backfill support engineer roles," the spokesperson said, adding that it successfully redeployed hundreds of employees into other areas of the company, like professional services, sales, and customer success.
Snap
Evan Spiegel is the CEO of Snap. Bloomberg/Getty Images In a memo to employees released in a regulatory filing on April 15, Snap CEO Evan Spiegel said the company would cut 1,000 employees, or about 16% of its global workforce. The CEO cited "rapid advancements" in AI and "small squads" using it to become more efficient.
Spiegel said Snap would also close more than 300 open roles, and that US-based employees would receive four months of severance, healthcare coverage, and equity vesting. In an investor update included in the company's filing, it said the layoffs would result in roughly $500 million in annualized cost savings.
Standard Chartered
Bill Winters is the CEO of Standard Chartered. Bloomberg/Getty Images Global bank Standard Chartered announced plans on May 19 to slash 15% of its staff by 2030.
CEO Bill Winters said in a media briefing in Hong Kong that the move isn't a cost-cutting effort, but rather, "replacing, in some cases, lower-value human capital with the financial capital and the investment capital that we are putting in," Bloomberg reported.
"We don't have job losses, but we do have job role reductions in favor of the machines, and that will accelerate as we go forward into AI," he said at the briefing.
The company added in a statement: "We are combining the best human talent with AI, investing to support our people into higher-value roles."
Wisetech
Wisetech is cutting 2,000 jobs. Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images Zubin Appoo, the CEO of Wisetech, said the logistics software maker is cutting 2,000 jobs, or 30% of its staff, because of AI-led efficiency.
In a conference call on February 25, Appoo said that AI enables greater productivity in less time and with fewer employees. The Sydney-based company employed about 7,000 people, according to an annual report released in October.
"I am prepared to say this clearly: the era of manually writing code as the core act of engineering is over," Appoo said. The technology is "unlocking levels of efficiency gains across WiseTech that were previously out of reach."
In some parts of the workforce, such as customer service, one in two workers will disappear, he added.
Wix
Wix CEO Avishai Abrahami shared the layoff memo he sent to staff on X. Wix; BI Wix announced it would be cutting 20% of its workforce, citing currency challenges and AI. In a post on X on May 28, Wix CEO Avishai Abrahami shared the layoff memo he sent to the team, saying that the first reason for the cuts was that the "exchange rate between the Shekel and the US dollar has shifted significantly."
He also cited "the fast evolution of AI capabilities."
"This is not just about adopting new tools - it is about rewiring how companies are built, how they think, how they manage and how they operate," Abrahami wrote in the post.
Abrahami said the company will operate leaner and flatter, and will continue to take steps toward an AI-native way of working. The company previously employed just under 5,300 workers, meaning roughly 1,000 roles will be affected.
Correction: May 19, 2026 — An earlier version of this story included Klarna. The company says it has not done AI-related layoffs.
