Blue Duck urges Snap to raise capital for Specs

Investment manager and shareholder Blue Duck Capital sent an open letter to the board of directors of Snap on Tuesday, October 6, 2026. The firm urged Snap to raise dedicated external capital for its Specs division from venture investors or a strategic partner without diluting current shareholders.

Blue Duck argued that securing outside funding would remove an estimated $500 million in annual spending on Specs from Snap's core operations. It estimated that Specs carries a standalone market value of $5 billion based on comparable precedents. According to the firm, this structure could more than double Snap's share price to between $12 and $14 per share by allowing Wall Street to evaluate the company on a sum-of-the-parts basis.

The fund noted that the public market currently values Snap's core advertising and subscription business at 2 to 3.5 times estimated 2027 EBITDA, even as the platform approaches one billion monthly users. Blue Duck said external funding would also accelerate the development timeline for next-generation Specs, boost employee morale, and enhance executive retention.