Snap Inc. Stock Rises on AR Product Updates Amid Persistent Profitability Concerns

Snap Inc. shares climbed 6.61% in pre-market trading to $8.71 following the unveiling of fifth-generation Spectacles and Snap OS 2.0. The augmented reality innovations drew enthusiastic responses from marketers, who see potential in Snap's advertising ecosystem distinct from rivals Meta and TikTok.

Despite the positive market reaction, analysts remain cautious. Snap's weak Q2 2025 earnings and ongoing losses continue to cast doubt on its path to profitability. The company projects ambitious targets of $7.5 billion revenue and $827 million profit by 2028, requiring sustained growth in its AR initiatives.

The new Spectacles AR glasses, slated for 2026 launch, aim to monetize Snap's youthful user base through immersive content experiences. Snap OS 2.0 positions the company at the forefront of potential smartphone displacement trends—a long-term bet that's energizing developers while testing investor patience.