In the letter, found here, Blue Duck urges the Board to raise dedicated external capital for Specs from venture investors or a strategic partner without diluting SNAP shareholders. Blue Duck believes that doing so would unlock a potential re-rating that could more than double SNAP's share price to $12-14, by:

• Pulling forward the timeline required for next generation Specs to improve form factor and price point.
• Removing an estimated $500 million in annual Specs spending from SNAP's core business, freeing free cash flow growth from the funding burden of Specs development.
• Establishing market value for Specs, which Blue Duck believes is $5 billion based on comparable precedents, so Wall Street can value SNAP on a sum-of-the-parts basis.
• Resetting value for SNAP's core advertising and subscription business, which the market currently values at just 2-3.5x estimated 2027 EBITDA despite strong revenue growth and nearly one billion monthly users.
• Improving employee morale, executive retention, and crystalizing a more focused strategic path forward.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.