Snap: The Specs Frenzy Ignores A Core Business That Finally Works

Snap's stock has been thrashed. On June 16, it fell 9.7% after co-founder Evan Spiegel unveiled SPECS - the company's new augmented reality glasses, priced at $2,195. The next day, it dropped another 5% to a low of $4.83 per share. In two sessions, roughly 15% of market value evaporated. The market's verdict was swift: another expensive hardware gamble from a company that already struggles to make money on ads.

I think the market is overreacting to SPECS and underreacting to the fact that Snap's core advertising business is finally showing durable momentum. The question isn't whether SPECS will be a blockbuster. It's whether the company's main revenue engine has stabilized enough to justify buying at a compressed multiple while the hardware bet plays out in the background.