In a world packed full of social media competitors such as Facebook, Snapchat appears to have set its sights on a less saturated industry.
Being bullish on Snap Inc (NYSE: SNAP) may no longer be taking the path less traveled for investors, but it is still a social media company in an ever-saturating market.
But Snap’s got eyes on another reality…
Snap’s making waves!
Snap Inc is most well known for Snapchat, but fewer folks are as well versed in its growing augmented reality (AR) business. Sure, we’ve all had a sly dig at its Spectacles AR glasses concept, but other than that, most earnings calls and analyst reports revolve around metrics such as ad revenue and active users.
But Snap hasn’t held back in its ambitions to become an AR powerhouse. The company announced late last week its acquisition of WaveOptics, a company that creates lenses and other parts that are used in augmented reality glasses. The acquisition will give Snap many of the components to create glasses that people can wear and then see computer-generated imagery overlaid on top of the real world.
The $500 million purchase coincided with Snap’s unveiling of its first AR Spectacles, which allow users to overlay digital objects in the real world. This will have massive implications for the way users interact with shopping, content creation, and much more. And although competitors such as Apple and Facebook are working on rival products, this is the first real step in AR glasses — rather than clunkier, less practical headsets such as those Microsoft produces.
This first-mover advantage could be huge for Snap Inc, with the AR market set to grow from a value of around $1 billion today to $130 billion by 2030. And, owning WaveOptics now gives it direct access to tried-and-tested AR glasses hardware, which can be built upon to create the ultimate escape from the ‘physical realm’ in which we all reside.
Sign me up!
MyWallSt operates a full disclosure policy. MyWallSt staff currently hold no positions in companies mentioned above. Read our full disclosure policy here.