Nano-Cap Innovative Eyewear Stock Soars 87% As ChatGPT-Enabled Smart Glasses Debut On Target’s Online Store

Shares of Innovative Eyewear Inc. (LUCY) jumped as much as 87% on Thursday, becoming the top-performing U.S. stock for the day and drawing maximum attention from retail investors on Stocktwits.

The company said its smart eyewear under its Lucyd brand is now available on Target.com, one of the largest U.S. retailers, aligning with its strategy to scale its presence in the nascent but fast-growing market.

Innovative Eyewear develops smart glasses integrated with ChatGPT, the hot AI-driven digital assistant developed by OpenAI, under its Lucyd, Nautica, Eddie Bauer, and Reebok brands.

These glasses feature built-in microphones and speakers that allow users to listen to music, take calls, and interact with digital assistants. However, according to PCMag, “what really sets them apart from the competition is ChatGPT integration.” 

Currently, these glasses can only be paired with an Apple iPhone.

The Lucyd glasses on Target are currently priced between $153.99 and $219.99, making them relatively affordable in the smart eyewear segment. 

Meta Platforms Inc.’s (META) Ray-Ban smart glasses, which were launched with much fanfare in September last year with their own AI features, are currently priced between $299 to $379.

Innovative Eyewear’s recent quarterly earnings have also contributed to the stock’s positive momentum. The company reported a net revenue of $308,682 for Q2 2024, up 82% from a year earlier, primarily driven by volume growth in the e-commerce channel. 

Additionally, the company recently reported a significant improvement in gross profit margins, which rose from a negative 18% in Q2 2023 to a positive 18% in Q2 2024. 

Looking ahead, Innovative Eyewear anticipates further margin improvements in Q4 2024 with the launch of new lines, which have lower estimated production costs compared to existing models.

While smart glasses are not yet a mainstream consumer product, they are gaining traction in niche markets such as entertainment, military, and certain business applications. 

In December 2023, Goldstein Research forecast the market to reach $10.6 billion by this year, with a compound annual growth rate (CAGR) of 21.5%. Grand View Research estimates the market was valued at about $1.23 billion in 2022 and will grow at a CAGR of 27.1% from 2023 to 2030.

Innovative Eyewear faces significant competition from major tech players like Meta, which is reportedly developing a smaller mixed-reality device, expected to launch as early as 2027. The company is also preparing to unveil its new Orion smart glasses during its Connect conference in September.

Read Next: Salesforce Stock Gets Jim Cramer’s Attention On ‘AI Game Changer’ Factor: Retail Investors Excited Too

Share

·

Add us on