Shares of Snap (SNAP 3.21%) were moving higher as the long-struggling social media stock seemed to gain on reaction to the recent release of the new augmented reality operating system (Snap 2.0), which it announced last week.
While there wasn't immediate news out today, some investors seem to see an opportunity in the beaten-down stock as attention around smart glasses is building, following Meta Platforms' push into the category.
As of 12:38 p.m. ET, Snap stock was up 5.7%.
Image source: Getty Images.
Is this a breakthrough for Snap?
According to Snap, the new operating system behind its AR Spectacles, Snap OS 2.0, is faster, more powerful, and easier to use. A demo shows it overlaying seamlessly with a real-world view, and it includes other new such as improvements in Spotlight, Gallery, and Lenses.
Today's gains also come as Meta is making a big push into smart glasses, and Snap appears to be its closest competitor there. If Meta can help build the market for augmented reality glasses, Snap should benefit. It's expected to release a consumer-focused pair of smart glasses next year, as opposed to a developer tool, which will help it tap into the new market.
NYSE: SNAP
Key Data Points
What's next for Snap
After showing early promise, Snap has struggled in recent years as it's been unable to convert its large user base into a profitable business, in part because it's been investing in its AR technology.
The company now has nearly 1 billion monthly active users, but it will need to be more than a social media company to turn a profit.
The success of the Specs release could be pivotal.
