When a company with a sub-$5 stock reveals $2,195 augmented reality glasses…

The insight: Snap stock (SNAP) has had a down week following the hyped reveal of the company’s latest AR glasses.

Now check out how much these glasses may have cost Snap to bring to life, according to Guggenheim analyst Michael Morris.

“We estimate that the company invested about $500 million in Specs development over the past 12 months, and that net investment is likely to increase well into the commercial rollout period,” he wrote in a Thursday note.

“We see longer-term optionality in the ability to develop a leadership position in wearable AR technology but expect the market will approach the product with caution pending incremental details on longterm cost and demand potential,” Morris added.

Quick analysis: On Tuesday, Snap CEO Evan Spiegel officially unveiled the next generation of Specs, the company’s first fully standalone, consumer-ready AR glasses.

Priced at a premium $2,195, these wireless glasses pack dual Qualcomm Snapdragon processors and proprietary display technology directly into the frame. They allow users to project an adjustable virtual screen that scales from a 24-inch desktop monitor for work up to a massive 115-inch theater display.

Snap stock has tanked since the big reveal.

Shares are down 10% in the past two trading sessions, bringing them to below $5 for the first time since mid-April.

AlphaSpace intel: Snap stock has been one of the most abysmal tech performers since its IPO.

Snap officially made its public debut on the New York Stock Exchange on March 2, 2017, pricing at $17 per share.

While the stock initially soared 44% to close its first day of trading at $24.48, it has since experienced a brutal, long-term crash, losing over 95% of its value from its 2021 pandemic peak of $83.

For perspective, Snap shares have plunged 93% in the past five years. Fellow AR glasses seller Meta (META) has seen its stock rise 73% over that same span, according to Yahoo Finance AlphaSpace.

The value destruction has been well-earned by Snap amid numerous quarters of poor execution.

Snap lost $460 million on a net basis last year. First quarter 2026 sales increased 26% from the prior year, but the company still posted a net loss of $89 million.

Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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