Earlier this month, Snap Inc (NYSE:SNAP) made its debut on Wall Street to a lot of buzz, especially among millennial investors. While the company’s disappearing message app has been a fast favorite among social media fans, a somewhat confusing company description was released during the Snapchat IPO.
According to management, Snap stock investors are buying shares in a camera company, not a social media or marketing firm.
This should have been somewhat surprising to investors as most people know Snapchat as a social app in which users’ messages disappear after a few seconds.
However, late last year, the firm rolled out a pair of glasses capable of taking short videos and uploading them to Snapchat. It was this product that gave SNAP the ability to frame itself as a ‘camera company’ rather than just another dot-com stock. Still, it remains to be seen whether the spectacles will become popular.
Snapchat: The Next Google Goggles?
With Snap Inc betting big on its spectacles, it has got to be a concern for SNAP stock investors that Google wasn’t able to pull off a similar product and no one has even attempted such a thing since. It’s worrying, especially considering that Snap wants to be known for the glasses as a camera company.
While video recording glasses are a bold move, Snap Inc.’s spectacles may not meet the same fate as Google Glass did. For one, SNAP’s glasses are much more affordable. Google Glass cost more than $1,000 ,while Snapchat’s are just $130. Another big plus is that Snap is already considered ‘cool’ among millennials.
When Google released Glass, the firm’s own attempt at social media was floundering and the glasses were considered an extension of an already shabby product. In Snap’s case, the glasses may be seen as a way to enhance an already popular user experience.