Snap CEO Evan Spiegel is doubling down on a hardware play with the September launch of $2,195 augmented reality glasses called Specs, despite investor wariness and social-media ridicule over their appearance. During a June CNBC interview, Spiegel wore the glasses against internal advice, prompting commenters to call them "laughably ugly" and "3D glasses at an IMAX theater." The project has consumed Spiegel for years, frustrating some employees and leaders who question his focus relative to the core Snapchat platform. Snap shares are down over 30% this year, and the 15-year-old company has never posted a profitable year, losing nine million daily users in North America over three years.

An activist investor recently challenged its strategy, and the past 18 months have seen departures of the general counsel, CFO, chief creative officer, chief communications officer, and the AR executive for the glasses. Snap cites 19% year-over-year revenue growth and nearly one billion monthly active users. Analyst Ramon Llamas of IDC calls the launch a "very well calculated bet" but notes the challenge of getting users to pay $2,200.

Spiegel and co-founder Bobby Murphy retain near-total control of the company, which released its first Spectacles before its 2017 IPO but faces fierce competition from TikTok and Meta Platforms.