Snapchat the new market leader

Snapchat the new market leader?

Just like for you, for me $SNAP (+0,66%) always been the app of the same name. In my opinion, however, there is much more hidden and overlooked potential here.

Snap has been developing AR glasses for over 10 years and has invested 3 billion dollars in them. In 2026, Snap will be the first company to bring a pair of glasses to the mass market that are standalone, significantly lighter and smaller than the current Spectacles model, which is only aimed at developers and was released in 2024.

Even here, the possibilities are already impressive, see from minute 07:39 https://youtu.be/HF_PgiM2btw?si=85ugnLHYOFjlRtk_

Snap is the first mover here and the glasses themselves are already doing well in various reviews; according to the management, the new ones will be even better.

Snap is nevertheless unprofitable with its current business, as a lot of money is naturally invested in development. Furthermore, Snap is currently only growing by around 10% a year.

Nevertheless, with a solid balance sheet, a P/E ratio of 2, an EBITDA ratio of 23 and a price-to-free cash flow ratio of 23 for 2026, Snap is not really expensive.

How do you see it? Is the market overlooking the potential of the glasses?

Echsenkönig Atokarn@Bezehgombjuderstimme

12H

I used to use Snapchat 10 years ago because you could make videos with filters and a helium voice. I have the feeling it's mainly children who use it. Whether they all buy glasses now is questionable for me. For me, the figures have looked red for too long. It's hard for me to say whether this will turn around. I would rather get in when the bottom has been reached and things are looking up. Before that, I see it as a ride into the abyss.

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HumanWithCap@realarb

I agree with you and hope for a revaluation of the stock because Snap is currently a clear pioneer in AR and scores with the best software available today.

Perhaps Snap will manage to offer a SaaS model of its AR software or the new AR glasses will be successful and adoption will be faster than expected.

The CEO is convinced that we have limited ourselves to such a small screen in recent years, but that reality is right in front of our eyes. So why not use AR glasses :-)