Snap to acquire AR display maker powering its Spectacles for $500M-plus

  • Snap (NYSE:SNAP) has reached an agreement to acquire WaveOptics, which supplies the augmented reality displays in its new Spectacles glasses, for more than $500M - its biggest deal ever.
  • WaveOptics' waveguides are being used in the latest version of Spectacles, which Snap announced yesterday.
  • The deal and new Spectacles mark Snap 's biggest bet on augmented reality yet. WaveOptics will continue to supply other companies with its waveguides, as well as work with Snap on custom optical systems.
  • WaveOptics' employees (about 125) will report to Snap 's hardware division.
  • Snap is paying for half the deal in stock now, and in two years will pay for the other half in either cash or stock.

    For this year Snap 's revenue will be around 3.9 billion USD. This is according to the average of the analysts' estimates. This is hugely more than 2020's revenue of 2.51 billion USD.

    Historical revenues and results Snap plus estimates 2020


    The analysts expect for 2021 a net profit of 339 million USD. Most of the analysts anticipate on a profit per share of 22 cent. The price-earnings-ratio equals an extreme 273.27.

    Analysts don't expect the company to pay a dividend. The average dividend yield of the internet companies is a low 1.12 percent.

    Snap 's market capitalization is based on the number of outstanding shares around 69.75 billion USD. The Snap stock was the past 12 months quite volatile. Since last May the stock is even 240 percent higher. This year the stock price moved between 17 and 74 dollar.

    Historical stock prices Snap

    stock analysis snap

    On Monday the stock closed at 60.12 USD. Nieuwsdienst: +31 084-0032-842

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