NEW YORK, April 2, 2026, 10:07 EDT.
Snap’s stock is back in the spotlight. Activist investor Irenic Capital Management revealed a 2.5% economic stake in the company’s Class A shares, pressing executives to slash expenses, ramp up share repurchases, and put artificial intelligence to work in boosting ad performance. Snap shares sat near $4.73 Thursday morning, having soared over 12% on Tuesday as word of Irenic’s push surfaced.
This is crucial for Snap as it looks to convert a shaky ad recovery into sustainable gains, while also pushing harder for direct revenue streams like subscriptions and payments, not just ads. Meanwhile, heavyweights Meta and TikTok continue battling to capture both eyeballs and ad dollars. Snap’s smart-glasses division, Specs, has become a flashpoint in that broader push.
Snap turned in a stronger fourth quarter, though the details were messy. The company topped Wall Street’s revenue forecasts in February—active advertisers jumped 28%. But guidance for first-quarter revenue landed a bit under expectations, and daily active users slipped by 3 million sequentially. Chief Financial Officer Derek Andersen pointed to mid-sized North American clients as the main source of dollar growth, while bigger accounts still dragged. “A long way to go,” said eMarketer’s Max Willens, referring to Snap’s struggle to attract large enterprise ad spend. Reuters
Irenic doesn’t mince words. In a public letter, the fund argued Snap’s valuation could approach $35 billion if it either divested or shuttered Specs, trimmed staff, altered its approach to stock-based pay, and pushed more investment into AI-driven ad tools. Specs, according to the fund, has already consumed over $3.5 billion and continues to burn about $500 million in cash annually.
Snap hasn’t dismissed the pressure. The company said it’s open to engagement with any shareholder. Chairman Michael Lynton pointed out Snap has already rolled out measures to boost performance, shore up free cash flow, and tackle dilution, adding that management continues to weigh any moves that might “drive long-term value” for investors. According to its annual report, Snap wrapped up a $500 million Class A buyback in January. Reuters
Even so, Snap has managed to carve out gains beyond advertising. Back in February, the company reported its direct revenue—which includes Snapchat+, the Memories archive, and other in-app purchases—hit a $1 billion annualized run rate. Subscriber numbers pushed past 25 million. CEO Evan Spiegel is aiming for that segment to turn into a “durable multi-billion-dollar growth driver” for the firm. Reuters
Specs has become the hot spot after Snap shifted the unit into a standalone subsidiary in January, just as Meta’s Ray-Ban smart glasses started putting eyewear on the map for AI hardware bets. Snap frames the move as a play for augmented reality, or AR—essentially, layering digital content over real-world views. Success here isn’t just about the hardware, says Francisco Jeronimo, vice president of devices research at IDC. It’s the “ecosystem integration and software value” that matter most. Reuters
Irenic can’t do much to force Spiegel or co-founder Robert Murphy’s hand. In its 2025 annual report, Snap made it clear: public Class A shares come with no voting rights, and together the founders hold more than 99% of the voting power—Spiegel on his own can call the shots. On top of that, the company is facing an EU probe launched last week over whether Snapchat is taking enough action against child grooming and illegal goods sales.
