Blue Duck Capital, LLC, a shareholder of Snap Inc. (NYSE: SNAP), has published an open letter to Snap's board of directors urging the company to raise external capital for its Specs augmented reality glasses without diluting existing shareholders.

The Manhattan Beach, California-based investment firm, which holds long positions in Snap common stock and call options, contends that securing funding from venture investors or a strategic partner could push Snap's share price to $12–$14, more than double its current level, according to the firm's estimates.

Blue Duck outlined several potential outcomes it believes would follow an external capital raise for Specs. The firm estimates that separating Specs funding would remove approximately $500 million in annual spending from Snap's core business, freeing up free cash flow. It also argues that outside investment would establish a standalone market value for Specs, which Blue Duck estimates at $5 billion based on comparable transactions.

The firm added that Snap's core advertising and subscription business is currently valued by the market at 2–3.5x estimated 2027 EBITDA, despite what it describes as strong revenue growth and nearly one billion monthly users.

Blue Duck was founded by Alex Beinfield in 2019 and employs a long/short equity strategy across technology, media, telecom, consumer, and industrial sectors.

The firm noted that its estimates and forward-looking statements rest on assumptions it believes are reasonable but are inherently uncertain. Blue Duck stated it has received no material nonpublic information from Snap and is not soliciting proxies or any coordinated shareholder action.