BNP Paribas analyst Nick Jones said Snap Inc's (NYSE:SNAP) new SPECS augmented reality glasses show strong innovation, but he warned that pricing and investment needs could limit the product's near-term impact.
The stock slid on Wednesday after the company showcased the product the previous day.
Jones Says SPECS Pricing Could Limit Adoption
Snap 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.
He noted that SPECS costs less than Apple Inc (NASDAQ:AAPL) Vision Pro, which starts at $3,499, but far more than Meta Platforms Inc's (NASDAQ:META) offerings, which start as low as about $250.
BNP Sees Mass-Market Questions
Jones 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 Plans
Jones 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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