Snap Inc. (NYSE:SNAP) stock declined Wednesday amid heightened scrutiny of capital spending on its $2,195 Specs augmented reality glasses. The Nasdaq is down 0.02% while the S&P 500 has gained 0.09%.
Sector peer Meta Platforms Inc. (NASDAQ:META) agreed Wednesday to settle a social media addiction lawsuit with California and 28 other states for approximately $18 billion, reported CNBC.
While Snap beat second-quarter estimates on Aug. 3, reporting an adjusted loss of 10 cents per share on $1.6 billion in revenue, investors remain cautious about hardware investments.
Heavy Spending On Augmented Reality
CEO Evan Spiegel noted that mass-market adoption of the $2,195 AI-powered Spectacles remains years away. “I think it will be towards the end of the decade before we see mass market consumer adoption,” Spiegel told analysts during the quarterly call. “Specs are designed for a future in which AI does more work on our behalf, and people spend less time operating screens,” Spiegel said.
