Snap Inc's stock surged 5.84% in after-hours trading following the company's announcement of its first consumer augmented-reality glasses, marking a significant strategic expansion beyond its core advertising business.

The social media company unveiled "Specs" at the Augmented World Expo, pitching the $2,195 device as a new type of computer for the AI age. The glasses represent a major bet by Snap in a competitive hardware category, offering full augmented reality capabilities that overlay digital content onto the user's real-world view, with features including AI-powered assistance, navigation, and content streaming.

Analysts noted that while the price point is high compared to some competitors like Meta's Ray-Ban smartglasses, building full AR glasses is technically challenging and expensive, making Snap's entry into this market significant. The company is initially focusing on developers to build AR experiences for the platform, which could be crucial as competition intensifies with Google, Apple, and OpenAI also exploring similar products.