In the letter, found here, Blue Duck urges the Board to raise dedicated external capital for Specs from venture investors or a strategic partner without diluting SNAP shareholders. Blue Duck believes that doing so would unlock a potential re-rating that could more than double SNAP's share price to $12-14, by:

  • Pulling forward the timeline required for next generation Specs to improve form factor and price point.
  • Removing an estimated $500 million in annual Specs spending from SNAP's core business, freeing free cash flow growth from the funding burden of Specs development.
  • Establishing market value for Specs, which Blue Duck believes is $5 billion based on comparable precedents, so Wall Street can value SNAP on a sum-of-the-parts basis.
  • Resetting value for SNAP's core advertising and subscription business, which the market currently values at just 2-3.5x estimated 2027 EBITDA despite strong revenue growth and nearly one billion monthly users.
  • Improving employee morale, executive retention, and crystalizing a more focused strategic path forward.