On October 13, Snap Inc. rose 5.09% in regular trading, trading at $6.55 per share with turnover of $1.75 billion.

The move follows a letter from hedge fund Blue Duck Capital Partners urging the board to sell a 20% stake in the Specs business at a $50 billion valuation to raise $10 billion. The activist fund argues Snap is severely undervalued and that the capital injection could fund approximately two years of Specs spending, preserve cash flow, and potentially lower the product's roughly $2,200 price point.

Specs has faced user criticism and competitive pressure from Meta's lower-priced lineup, raising doubts about the sustainability of Snap's hardware investment. External capital involvement is seen as a potential catalyst to ease funding concerns and improve market expectations.

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