Is it time to dump your Snap stock?

Roth Capital Partners analyst Rohit Kulkarni says Snap’s (SNAP Stock Quote Chart, News, Analysts, Financials NYSE:SNAP) new standalone augmented reality glasses are technologically impressive, but unlikely to have a near-term earnings impact given their premium price and early-adopter focus.

In a June 18 update, Kulkarni maintained his “Neutral” rating and $7.00 target on Snap after the company unveiled Specs at AWE 2026. Snap shares fell 22% over Tuesday and Wednesday following the announcement.

Specs are standalone AR glasses powered by dual Qualcomm Snapdragon processors, with a 51-degree field of view, 16 million colours, prescription support and about four hours of mixed-use battery life. Pre-orders are now open at $2,195, with shipping expected this fall in the United States, the United Kingdom and France.

“We see distribution skewing to developers, prosumers, and affluent early adopters, with little synergy to Snapchat’s younger, price-sensitive base,” he said.

Management described 100,000 units as a stretch goal. Kulkarni said that would represent about $220-million in revenue, or roughly 1%accretion to 2026 consensus on a three-year cycle.

“In our view, the developer ecosystem and future cost-curve declines are the real long-term levers,” Kulkarni said. “We expect lower-priced, tiered models to drive eventual volume.”

He said a future spinout or minority investment in Specs remains a possibility after Snap created Specs as a separate wholly owned subsidiary earlier this year. But he doesn’t see a transaction as imminent.

“If Snap demonstrates momentum through consumer demand, a scaling developer ecosystem, and a credible path down the cost curve, a spin-out or minority stake could be priced attractively,” Kulkarni said.

Kulkarni said the launch is constructive to neutral for Meta, reinforcing the broader AI and AR glasses opportunity while leaving Meta’s category lead intact. He said Snap’s product validates the view that AI and AR glasses could become the next computing platform, but remains a more capable, higher-priced and more niche product than Meta’s lower-cost, fashion-focused approach.

“All in, the competitive set is broadening with Google and Apple as credible entrants to monitor,” he said.

Kulkarni expects Snap to generate Adjusted EBITDA of $1.23-billion on revenue of $6.57-billion in fiscal 2026, improving to Adjusted EBITDA of $1.44-billion on revenue of $6.96-billion in fiscal 2027.

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