Guggenheim estimates Snap spent $500 million developing its premium AR glasses, weighing on shares already down 10% this week.
Snap Inc. unveiled its latest augmented reality glasses, priced at $2,195, but the reveal has pressured its stock, which fell 10% over two trading sessions to below $5. The decline follows concerns over development costs and commercial viability of the product.
Analysts estimate Snap invested approximately $500 million in the past year to develop the glasses, with further spending expected during the rollout phase. The glasses feature dual Qualcomm Snapdragon processors and proprietary display technology, targeting both work and entertainment use cases.
Despite long-term potential in wearable AR, the market remains cautious, awaiting clarity on demand and cost sustainability. Shares hit their lowest level since mid-April, reflecting investor skepticism.