Snap Inc. (NYSE:SNAP) said its $2,195 artificial intelligence-powered Spectacles are a long-term investment, with CEO Evan Spiegel acknowledging that mass-market adoption is unlikely before the end of the decade even as the company continues to invest in what it sees as the next computing platform.

Mass Market Adoption May Take Years

Speaking on the company’s second-quarter earnings call, Spiegel said Snap plans to unveil its augmented reality glasses at its Sept. 16 event before a commercial launch later this year.

“I think it will be towards the end of the decade before we see mass market consumer adoption,” the CEO told analysts.

Spiegel added that the company remains focused on demonstrating the long-term value of its investment in specs as it works to build a new computing platform powered by AI.

In comparison to Snap’s AI glasses, Meta Platforms Inc.‘s (NASDAQ:META) smart glasses start at $299, while Apple Inc.‘s (NASDAQ:AAPL) Vision Pro starts at $3,499.

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The Future of AI Means Less Time Operating Screens

“Specs are designed for a future in which AI does more work on our behalf, and people spend less time operating screens,” Spiegel said.

He described it as a first-mover opportunity in a new computing category, built around software that increasingly works on users’ behalf rather than requiring them to spend more time navigating apps and screens.

Q2 Tops Wall Street Estimates

Snap reported a second-quarter adjusted loss of 10 cents per share, beating Wall Street estimates for a loss of 12 cents, according to Benzinga Pro.

Revenue rose 19% year over year to $1.6 billion, topping analysts’ estimates of $1.54 billion.

The company expects revenue for the third quarter of around $1.70 billion to $1.74 billion, compared to Wall Street’s forecast of $1.69 billion. The quarter’s adjusted EBITDA is expected to be in the range of $300 million and $350 million.

Price Action: SNAP closed 7.46% higher on Monday at $5.04 and rose another 7.17% in extended trading as the news of the earnings came in after the bell.

Benzinga edge rankings indicate SNAP has a Momentum score in the 5th percentile and a negative price trend across the short, medium, and long term.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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