Meta Platforms (NASDAQ: META) has seen its shares grow by 500% since the end of 2022, after experiencing a 62% decline due to its metaverse ambitions initiated in 2021. The company, originally named Facebook, shifted focus from the metaverse to AI-enabled advertising, contributing to its share recovery.
On July 14, 2023, Meta reportedly acquired a nearly 3% stake in EssilorLuxottica (OTCMKTS: ESLOY), the maker of Ray-Ban and Oakley glasses. This investment signifies a deep commitment to smart glasses, aligning with Meta’s strategy to enhance its Reality Labs segment. However, Reality Labs has generated less than $4.5 billion in revenue over nine quarters while incurring an operating loss of approximately $38 billion.
In 2024, Meta sold one million Ray-Ban smart glasses, aiming to double sales by 2025. Despite a 6% decrease in Reality Labs sales in Q1 from the previous year, the market for smart glasses presents a growth opportunity, especially as competitors like Google prepare to enter the segment in 2026. Success in this area will be crucial for Meta’s long-term profitability.
