Meta Reportedly Deepens Smart Glasses Bet with Stake In EssilorLuxottica, Sending Shares Of Ray-Ban Maker up 6%

Shares of Ray-Ban and Oakley maker EssilorLuxottica SA (ESLR) rose nearly 6% premarket on Wednesday after tech giant Meta Platforms (META) reportedly bought a minority stake in the world’s largest eyewear manufacturer as an attempt to deepen its commitment to the fast-growing AI-powered smart glasses industry.

Meta shares were up marginally before the bell. Retail sentiment around the tech giant was in the ‘neutral’ territory, compared to ‘bullish’ a month ago, according to Stocktwits data.

The Facebook parent bought just under 3% of EssilorLuxottica, a stake worth about €3 billion ($3.51 billion) at current market price, according to a Bloomberg News report citing people familiar with the matter.

The report added that Meta is considering further investment in the Ray-Ban maker, which could build the stake to around 5% over time, though those plans could change.

Meta and EssilorLuxottica had first partnered in 2019 to produce Ray-Ban smart eyewear with the first pair of glasses debuting in 2021. Last month, both companies also launched Oakley-branded glasses.

The reported expansion of Meta’s partnership with EssilorLuxottica is a move that would give Meta greater control over its technology and enable it to gain market share in the wearable AI segment. By incorporating innovative features into popular eyewear brands like Ray-Ban and Oakley, Meta can develop its line of devices and reduce its reliance on other tech companies.

Meta’s deal, if confirmed, would reinforce CEO Mark Zuckerberg’s growing focus on AI, which has become both a strategic priority and a significant cost for the company.

It also allows Meta to turn smart glasses into a key product for future technologies, such as augmented reality.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Boeing Stock Draws Retail Buzz After Delivering Highest Number Of Jets Since 2023

Share

·

Add us on