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].