Snap Inc. Establishes Specs Subsidiary for AR Glasses Development
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy SNAP?
Source: CNBC
Snap Inc. shares fell 4.95% as the stock hit a 52-week low amid broader market weakness, with the Nasdaq-100 down 0.89% and the S&P 500 down 0.36%.
Despite the establishment of its wholly owned subsidiary, Specs Inc., aimed at enhancing operational focus for AR glasses development, Snap's stock continues to struggle. The subsidiary's formation is part of Snap's strategy to secure new partnerships and provide capital flexibility in a competitive market, particularly against rivals like Meta and Alphabet. However, concerns about user decline and cautious analyst outlooks have overshadowed this positive development.
The implications of Snap's new subsidiary could be significant for its long-term growth in the AR sector, but immediate market reactions suggest that investors remain wary, particularly with the upcoming earnings report and ongoing user base challenges.
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Analyst Views on SNAP
Wall Street analysts forecast SNAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNAP is 9.57 USD with a low forecast of 7.00 USD and a high forecast of 13.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
2 Buy
24 Hold
2 Sell
Hold
Current: 5.120
Low
7.00
Averages
9.57
High
13.00
Current: 5.120
Low
7.00
Averages
9.57
High
13.00
About SNAP
Snap Inc. is a technology company. Its flagship product, Snapchat, is a visual messaging application that enhances relationships with friends, family, and the world. Snapchat is the Company's core mobile device application and contains five tabs, complemented by additional tools that function outside the application. Snapchatters can interact with any or all the five tabs. Additionally, it offers Snapchat+, its subscription product that provides subscribers access to exclusive, experimental, and pre-release features. Snapchat+ offers a range of features, from allowing Snapchatters to customize the look and feel of their application, to giving special insights into their friendships. The Company also offers Snapchat for Web, a browser-based product that brings Snapchats calling and messaging capabilities to the Web. Its advertising products include AR Ads and Snap Ads. Snap Ads include Single Image or Video Ads, Story Ads, Collection Ads, Dynamic Ads, Commercials, and Sponsored Snaps.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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