Snap shares jumped 6.1% in the afternoon session as investors reacted to a fresh burst of AI and augmented reality news from the Snapchat parent. Chief Executive Evan Spiegel said AI is “probably the best thing that’s ever happened” to Snap.
The move came after Snap announced a multi-year strategic agreement with Qualcomm that will use Snapdragon chips to power future generations of its Spectacles AR glasses, which are expected to launch in 2026. The company also said it had formed a new partnership with the Los Angeles Dodgers to bring AR camera experiences to Dodger Stadium.
The rally gave Snap stock a rare good day in a year marked by big swings. Shares have seen 22 moves greater than 5% over the last 12 months, a level of volatility that has kept traders on edge. Just 18 days earlier, the stock dropped 11.4% after a Los Angeles jury found major social media platforms negligent, saying their products are designed to be addictive and cause harm to young users.
Even after Tuesday’s gain, Snap remains under pressure. The stock was down 37.2% since the start of the year and traded at $5.11 a share, still 50.7% below its 52-week high of $10.35 set in July 2025. A $1,000 investment in Snap shares five years ago would now be worth $81.76, a reminder of how sharply the company’s fortunes have changed.
For now, the market is rewarding Snap for leaning hard into the two themes it has been pitching for months: AI and AR. The harder question is whether those promises can translate into sustained growth before another sharp swing wipes out today’s gain.
