New York, January 29, 2026, 11:24 ET — Regular session
- Snap shares slipped in late-morning trading, erasing some of Wednesday’s gains
- The pullback follows Snap’s decision to spin off its Specs smart-glasses unit and signal a potential minority investment.
- Traders are eyeing the Feb. 4 results for clues on ad demand and spending
Snap Inc shares dropped 6.4%, settling at $7.18 in late-morning trading on Thursday, wiping out an earlier gain that had pushed the stock up to $7.77.
Investors pulled back from tech, digesting recent earnings and fresh AI-driven spending. The Nasdaq slipped roughly 1%, dragged down by Microsoft, which plunged over 11%. Meanwhile, Meta jumped close to 8% following an upbeat outlook, Reuters reported. 1
Snap is just days from releasing its quarterly results and has recently taken a fresh, long-term gamble on hardware. For now, the stock feels more like a macro play than a straightforward company story.
Snap closed Wednesday up 2.8% at $7.67, breaking a brief slide and outpacing a number of major tech stocks, according to MarketWatch data. 2
Snap is spinning off “Specs” as a standalone subsidiary focused on making augmented-reality smart glasses — which layer digital effects over the real world. The company said the unit may seek minority investors as it aims for a consumer release later this year. Francisco Jeronimo, IDC’s devices research VP, told Reuters the key won’t be breakthrough hardware but rather ecosystem integration and software value. The report also highlighted Meta’s strong position in the space. 3
Snap announced in its newsroom that spinning off Specs Inc. as a separate entity will provide greater operational focus and “capital flexibility.” The move aims to boost partnerships and offer clearer valuation. The company also highlighted see-through lenses that overlay 3‑D digital objects in a user’s field of vision, alongside an “Intelligence System” designed to assist with tasks while safeguarding privacy. 4
That’s a costly environment for investors. Hardware plays the long game, yet Snap remains tied closely to digital advertising, where budgets often shift with economic and market sentiment.
Snap will report its fourth-quarter and full-year 2025 earnings on Feb. 4 after markets close, the company announced in a Jan. 20 statement. A conference call is set for 5 p.m. Eastern that day. 5
Investors are keen to hear about ad demand, user activity, and whether costs are aligning to protect margins. Details on how fast Specs might shift from R&D to generating revenue—or if outside investors show interest—will probably carry as much weight as the main news.
But the smart-glasses narrative isn’t all positive. It’s a capital-heavy sector, vulnerable to supply chain hiccups, and consumer uptake remains uncertain—particularly with bigger competitors able to outspend and outsupply.
The next major catalyst arrives on Feb. 4, when Snap reports earnings and guidance. That will reveal if the Specs move signals a fresh chapter or just a brief spike in a volatile market.
