Shares of Eselor Luxodica are sharply higher. The French parent company of Rayban reporting an 11.7% jump in sales in the most recent quarter. That company said a healthy amount of its revenue growth came from its partnership with Meta to sell smart glasses.The company now offers smart glasses under the Rayband and Oakley brands and it's working on a Prada version as well. And I have to say it is a gamecher. I' I've got a pair of them.Like I would have never worn any of the earlier weirdo ones, but these ar ...

Core Insights - Meta is set to unveil its new smart glasses, codenamed "Hypernova," at the upcoming "Connect" conference on September 17-18, which will feature a consumer-ready display and a wristband for gesture control [2][3][4] Product Details - The Hypernova glasses will include a small digital display in the right lens, marking Meta's first smart glasses with a display, although sales expectations are being kept low due to increased component requirements leading to a heavier and thicker design [3] - The pricing for Hypernova is expected to be $800, down from an initial target of $1,000, while existing products like Meta's Ray-Ban glasses range from $200 to $400 [4] Market Context - The Hypernova glasses are designed to work with mobile phones but suggest a future where glasses could potentially replace smartphones, with features like a smartphone-quality camera and a voice-activated AI tool being speculated [5][6] - Meta's partner, EssilorLuxottica, reported a sales increase of over 200% in the first half of the year for their Ray-Ban glasses, indicating strong market interest [6]

Core Viewpoint - Meta Platforms has experienced significant fluctuations in its stock value, particularly due to its initial focus on the metaverse, but has since rebounded by shifting towards AI-enabled advertising and smart glasses [3][4]. Company Performance - Meta shares lost approximately 62% of their value from late 2021 to the end of 2022, but have surged by 500% since then as of July 14 [4]. - Reality Labs, which focuses on the metaverse, has generated less than $4.5 billion in revenue over the last nine quarters and incurred an operating loss of around $38 billion [5][6]. Investment Strategy - Meta has acquired a nearly 3% stake in EssilorLuxottica, indicating a strong commitment to the smart glasses market [5][6]. - This investment could potentially increase to 5%, allowing Meta to influence EssilorLuxottica's operations [7]. Market Focus - The shift towards smart glasses is seen as a more viable path for Reality Labs compared to VR headsets, as smart glasses cater to a broader market [9][10]. - In 2024, Meta sold one million Ray-Ban smart glasses, with a target of two to five million by 2025, although sales fell by around 6% in Q1 compared to the previous year [11]. Competitive Landscape - The emergence of new competitors, such as Google partnering with Samsung and Warby Parker to release smart glasses in 2026, poses a threat to Meta's market position [14]. - Strong sales growth in Meta's smart glasses is crucial for the company's future, as Reality Labs is unlikely to achieve profitability soon [15].