After unveiling ridiculously expensive AR glasses, Snap’s stock takes a dive

Snap has made waves with the introduction of its highly anticipated AR glasses, known as Specs, but the launch has not been smooth sailing. The company's stock has been struggling, with a notable 30 percent decline over the past year. In the wake of Specs' release, shares plummeted more than 5 percent, dropping from $5.86 on Tuesday to a low of $4.83 by Wednesday morning. As of now, the stock has not regained its former standing prior to this announcement. A significant concern surrounding the new smart glasses is their hefty price tag, set at nearly $2,200 each. This pricing raises eyebrows, especially considering Snap's primary audience consists of teenagers, who typically lack the financial means to make such an expensive purchase. This has led analysts and investors to question the potential profitability of the product. During an interview with CNBC on Tuesday, where he showcased the glasses, Snap's CEO Evan Spiegel addressed the steep cost. He emphasized that Specs should be viewed as a computer, positioning them within a price range similar to that of high-end laptops. Spiegel further elaborated on the product's unique market position, stating that Specs bridges the gap between more affordable options, like Meta’s Ray-Bans, which offer limited computing capabilities, and more expensive devices like the Apple Vision Pro, which, while powerful, are bulky and costly. He described his offering as both "highly wearable" and "incredibly capable for immersive computing."