BUZZ-Rosenblatt says finding partner for Snap's smart glasses unit tough

Reuters04-01
BUZZ-Rosenblatt says finding partner for Snap's smart glasses unit tough

** Shares of Snapchat-parent Snap SNAP.N up 0.7% at $4.63 premarket

** Rosenblatt says it agrees with activist investor Irenic Capital Management's suggestion for Snap to spin off or exit costly augmented reality smart glasses unit Specs

** Irenic said on Tuesday it has an economic interest of ~2.5% of co's Class A shares

** SNAP lacks financial resources or network effect prowess of Apple AAPL.O and Meta META.O, brokerage says, citing the contrasting performance of Meta Ray-Bans and Apple Vision Pro

** Says there is no real supply chain chatter, suggesting Specs might not become available in early 2026, and would more likely be a Christmas push if it appears this year

** "It might be hard to find a JV partner given the difficult prospects in this market" - brokerage

** Slashing headcount probably makes improving the ad tools that could close the gap between Snap and peers in ad monetization harder, brokerage says

** As of last close, stock down ~43% this year

(Reporting by Jaspreet Singh in Bengaluru)

((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))

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