Snap Inc. (NYSE: SNAP) shares climbed nearly 7% on Friday, outperforming the broader communication services sector which fell 1%. The stock was trading at $6.26 at the time of publication, moving above its major moving averages.
Beyond the technical momentum, Snap is expanding its augmented reality technology into enterprise applications. The company announced partnerships with NVIDIA Corporation (NASDAQ: NVDA), Salesforce Inc. (NYSE: CRM), and Amazon.com Inc. (NASDAQ: AMZN) through Amazon Web Services. This initiative aims to position Snap's $2,195 SPECS augmented reality glasses as a computing platform combining AR with artificial intelligence, using NVIDIA's XR AI technology to develop agents that process live camera and microphone inputs.
Separately, activist investor Blue Duck Capital urged Snap's board to raise outside funding for the Specs business. In an open letter, the firm proposed selling a 20% stake in Specs for $1 billion, valuing the business at $5 billion. Blue Duck estimates this funding could cover two years of Specs development costs, currently estimated at $500 million annually. The firm also identified Space Exploration Technologies Corp. (NASDAQ: SPCX) as a potential strategic investor.
Looking ahead, Snap is scheduled to report earnings on Nov. 4. Analysts project earnings of 16 cents per share, compared with a loss of 6 cents a year earlier, with revenue expected to rise to $1.73 billion from $1.51 billion. The consensus rating on Snap is Hold, with an average price forecast of $7.32.
