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SNAP Acquires NextMind to Drive Augmented Reality Research
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Snap (SNAP - Free Report) has recently acquired the neurotech company, NextMind, a Paris based startup that develops non-invasive brain-computer interface technology using electronic devices.
This technology detects brain signals using electroencephalogram and then uses machine signal algorithm to translate the signals into digital commands, for example, pushing a virtual button by just focusing on it.
The acquisition is expected to help Snap realize its long-term augmented reality ("AR") goals within Snap Lab. Snap Lab is a hardware team focused on building devices to develop Snap’s augmented reality platform. Currently, the team is focused on developing the future of AI in Snap Camera and Spectacles.
Snap AR is explicitly targeted at content creators around the world to help revolutionize the way digital content is created and explored.
Strong Adoption of SNAP AR Lenses Driving User Growth
Snap, like some the other tech companies, has slowly transitioned from being just a social media platform by introducing AR.
Snap has introduced AR to its users with the help of augmented reality lenses that are available across Snapchat, Snap Camera and Snap’s latest development, Snap Spectacles.
AR lenses allow advertisers to create unique experiences for consumers as well as a deeper and better-informed connection between their products and consumers.
Snap has recently launched catalog-powered shopping lenses, which will allow brands to attach product catalogs to users’ AR lens experience on Snapchat.
Users can now scroll and try on different products while using Snapchat virtually and also view the product name, price and other information, thus creating an AR shopping experience. This will develop a unique shopping experience between shoppers and different brands.
Snap has also created Snap Spectacles that allow creators to bring augmented reality into real life. However, this product is not for sale and Snap is collaborating with creators to create unique content using Snap Spectacles.
This has helped Snap attract users, specifically among Gen-Z and millennials. Currently, there are 2.5 million lenses available across Snap’s various platforms, 250 thousand lens creators and a whopping 3.5 trillion views of content created by the creator community.
Snap’s unique offering has helped the brand become the most preferred social networking medium amidst competition from Meta Platforms’ Instagram.
Snap currently carries a Zacks Rank # 3 (Hold).
In the year-to-date period, the stock has fallen 28.7% due to stiff competition in the broader tech sector and uncertainty in global financial markets created by the pandemic and geopolitical tensions. The Zacks Internet-Software industry has tumbled 28.7%, and the Zacks Computer and Technology sector has fallen 11.1% in the said time frame.
Snap Facing Stiff Competition
Snap is facing stiff competition from other tech giants in the augmented reality space, as companies like Meta and Apple (AAPL - Free Report) are vying to win market share.
Meta’s interest in the Metaverse is already well known. The company’s primary focus has shifted from social media to creating an alternate AR/VR reality for users.
Oculus is the result of the company’s ambitious augmented reality/virtual reality (AR/VR) efforts. AR/VR technology is rapidly emerging as a lucrative business opportunity, and Meta is looking to capitalize on this with its Oculus Quest Virtual reality headset.
Apple, unlike Meta, is not interested in the idea of a completely virtual world. Apple, on the contrary, is more interested in AR, where users will lay digital objects onto the real world rather than virtual reality tools that create an entirely new world.
The iPhone-maker is rumored to launch its first AR headset in the second half of 2022. AR glasses from Apple, once available, will intensify competition for the likes of Meta in the AR/VR space.
A Stock to Consider
While Snap is a good stock to hold in one’s portfolio, here is a better-ranked stock to help you achieve better returns in the broader Computer and technology sector.
Image: Bigstock
SNAP Acquires NextMind to Drive Augmented Reality Research
Snap (SNAP - Free Report) has recently acquired the neurotech company, NextMind, a Paris based startup that develops non-invasive brain-computer interface technology using electronic devices.
This technology detects brain signals using electroencephalogram and then uses machine signal algorithm to translate the signals into digital commands, for example, pushing a virtual button by just focusing on it.
The acquisition is expected to help Snap realize its long-term augmented reality ("AR") goals within Snap Lab. Snap Lab is a hardware team focused on building devices to develop Snap’s augmented reality platform. Currently, the team is focused on developing the future of AI in Snap Camera and Spectacles.
Snap AR is explicitly targeted at content creators around the world to help revolutionize the way digital content is created and explored.
Snap Inc. Price and Consensus
Snap Inc. price-consensus-chart | Snap Inc. Quote
Strong Adoption of SNAP AR Lenses Driving User Growth
Snap, like some the other tech companies, has slowly transitioned from being just a social media platform by introducing AR.
Snap has introduced AR to its users with the help of augmented reality lenses that are available across Snapchat, Snap Camera and Snap’s latest development, Snap Spectacles.
AR lenses allow advertisers to create unique experiences for consumers as well as a deeper and better-informed connection between their products and consumers.
Snap has recently launched catalog-powered shopping lenses, which will allow brands to attach product catalogs to users’ AR lens experience on Snapchat.
Users can now scroll and try on different products while using Snapchat virtually and also view the product name, price and other information, thus creating an AR shopping experience. This will develop a unique shopping experience between shoppers and different brands.
Snap has also created Snap Spectacles that allow creators to bring augmented reality into real life. However, this product is not for sale and Snap is collaborating with creators to create unique content using Snap Spectacles.
This has helped Snap attract users, specifically among Gen-Z and millennials. Currently, there are 2.5 million lenses available across Snap’s various platforms, 250 thousand lens creators and a whopping 3.5 trillion views of content created by the creator community.
Snap’s unique offering has helped the brand become the most preferred social networking medium amidst competition from Meta Platforms’ Instagram.
Snap currently carries a Zacks Rank # 3 (Hold).
In the year-to-date period, the stock has fallen 28.7% due to stiff competition in the broader tech sector and uncertainty in global financial markets created by the pandemic and geopolitical tensions. The Zacks Internet-Software industry has tumbled 28.7%, and the Zacks Computer and Technology sector has fallen 11.1% in the said time frame.
Snap Facing Stiff Competition
Snap is facing stiff competition from other tech giants in the augmented reality space, as companies like Meta and Apple (AAPL - Free Report) are vying to win market share.
Meta’s interest in the Metaverse is already well known. The company’s primary focus has shifted from social media to creating an alternate AR/VR reality for users.
Oculus is the result of the company’s ambitious augmented reality/virtual reality (AR/VR) efforts. AR/VR technology is rapidly emerging as a lucrative business opportunity, and Meta is looking to capitalize on this with its Oculus Quest Virtual reality headset.
Apple, unlike Meta, is not interested in the idea of a completely virtual world. Apple, on the contrary, is more interested in AR, where users will lay digital objects onto the real world rather than virtual reality tools that create an entirely new world.
The iPhone-maker is rumored to launch its first AR headset in the second half of 2022. AR glasses from Apple, once available, will intensify competition for the likes of Meta in the AR/VR space.
A Stock to Consider
While Snap is a good stock to hold in one’s portfolio, here is a better-ranked stock to help you achieve better returns in the broader Computer and technology sector.
Advanced Micro Devices (AMD - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the year-to-date period, AMD’s shares have fallen 20.8% compared with the Zacks Electronics - Semiconductors’ decline of 12.3%.