Key points:
- Snap invests further into augmented reality with acquisition of NextMind
- NextMind is known for creating products that support hands-free use of electronics
- How will the company's direction affect its user base and place amongst social competition?
Snap (NASDAQ: SNAP) has come a long way from its bread-and-butter foundations. Users are able to utilize state-of-the-art technology for a wide range of effects and augmented reality features; pushing the boundaries of how we interact with photography in real-time.Â
The social media company has been subject to strong volatility off the back of sentiment regarding Facebook’s slowing user base, yet the company was quick to win back buyers the following day. Investors are still curious as to how the company plans to navigate rising competition from rival TikTok. Well today, the route seems a little clearer.Â
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The company announced earlier the completed acquisition of NextMind. What does this mean for Snap? It seems that the social app is venturing further into the augmented reality space, with NextMind being an industry leader in hands-free electronic interaction through the use of brain signals.Â
The partnership with NextMind will drive Snap’s vision to develop its augmented reality platform. The technology already on the market from NextMind monitors neural activity to read intent when using an electrical interface; allowing complete hands-free, neural-focused interaction.
It's likely we will soon see pieces of NextMind technology making their way into future Snap offerings, in particular AR pieces like Camera and Spectacles. It will be interesting to see how Snap’s deep focus on cutting-edge technology merges with its young demographic, and how enhanced augmented reality will affect the company's position against growing competition in the social space. Investors didn’t react strongly to the acquisition news, leaving Snap stock at a daily gain of 1.7%.