Snap ( SNAP Quick Quote SNAP - Free Report) recently launched new augmented reality (AR) lenses at Electric Daisy Carnival, Las Vegas. The four introduced lenses are Night Owl Lens, Daisy Lens, AR Compass and Friend FindAR Lens. These new AR experiences introduced at the music festival are part of Snap’s Live Nation Entertainment ( LYV Quick Quote LYV - Free Report) partnership. The AR Lenses have been produced with help from Snap’s AR creative studio Arcadia. Snapchat entered into a multi-year partnership with Live Nation to use AR experiences, which have been created with artists. The companies plan to collaborate with artists at various music festivals throughout the partnership. As envisioned by the companies, these AR experiences would let concert-goers try (and potentially purchase) merchandise, find friends in the audience, discover exclusive landmarks on the festival grounds and more. Also, Snapchat users will be able to share content generated by the AR Lenses at live events with friends and on Snapchat Stories. Focus on AR Solutions to Boost Prospects
Over the years, Snap has transitioned to tech from just being a social media platform, mainly by introducing diversified AR offerings such as AR Bar, Scan and Landmarkers.
The company, generating a significant chunk of its revenues by offering various advertising products on Snapchat, has been riding on accretive acquisition since the past year. Earlier this year, Snap acquired Paris-based neurotech startup NextMind. NextMind specializes in developing non-invasive brain-computer interface technology using electronic devices. It has joined Snap to help drive long-term AR research efforts within the Snap Lab. The NextMind team will continue to operate from Paris. In 2021, the Snapchat parent acquired an AR startup, Wave Optics, that makes waveguides and projectors used in AR glasses. Snap paid more than $500 million for the startup in a cash-and-stock deal. Snap has previously worked with Wave Optics to deliver the latest iteration of its Spectacles augmented reality glasses. Snap has made at least three other purchases of startups since January 2021, including Fit Analytics for an AR-fueled move into e-commerce and Pixel8Earth and StreetCred for its mapping tools Shares of Snap, which currently carries a Zacks Rank # 3 (Hold), have plunged 50.6% in the year-to-date period compared with the Zacks Computer and Technology sector’s decline of 28.3%.
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Snap faces significant competition domestically and internationally in almost all of its business because its products and services operate across a broad list of categories, including camera, communication, content, games and augmented reality.
The competitors range from newer companies to established firms such as Apple ( AAPL Quick Quote AAPL - Free Report) , Meta Platforms (including Facebook, Instagram and WhatsApp), Pinterest, Tencent and Twitter among others. Apple’s augmented reality ambitions are established. Reportedly, the company is working on a mixed reality headset. According to a recent report, board members got a glimpse of a prototype of the headset, which is capable of both augmented and virtual reality. Meta’s Facebook had previously launched its smart glasses, in partnership with Ray-Ban maker Essilor Luxottica. The glasses allow wearers to listen to music, take calls, capture photos and short videos and share them across Facebook's services using a companion app. Meta is set to begin testing tools to sell digital assets and services within Horizon Woods, its virtual reality platform. The company has heavily invested in augmented and virtual reality, which reflect its new bet on the metaverse. These diverse pans from tech giants are expected to generate massive competition in the addressable alternate reality market and capture significant market share.