Snap's shares jumped 12% in after-hours trading on Monday after the social media company beat second-quarter revenue expectations, with CEO Evan Spiegel pointing to a new line of wearable AI glasses, called SPECS, as the company's "largest long-term opportunity". Spiegel framed the $2,195 glasses, which launch on 16 September, as central to Snap's future as it pursues profitability through a leaner, AI-focused operating model, though the company has struggled with wearables before.

Revenue rose 19% year-on-year to $1.60 billion, monthly active users grew to 971 million and daily active users reached 493 million, while the net loss narrowed to $164 million from $263 million a year earlier. SPECS, unveiled in June and available for pre-order in the US, UK and France, offer AI assistance, navigation and content streaming, but Snap's earlier Spectacles launches in 2016 and 2021 failed to sell well. The investment sits within Snap's $2.75 billion full-year expense outlook, following April's layoffs of 1,000 staff (16% of the workforce), which the company says will cut its annual cost base by over $500 million by late 2026.