Meta Bets on Sports with Oakley Smart Glasses, Expanding Its $120 Billion AR Ambitions

Meta Platforms (META) doesn’t want to give up on its vision to create a simulated reality. The disaster that was called the ‘Metaverse’ didn’t deter its founder, and the push for a simulated ecosystem remains on course. After signing a deal with Ray-Ban earlier this year to produce the Meta glasses, META, along with Oakley, will unveil a new pair of smart glasses on June 20. The new product is designed for athletes and outdoor enthusiasts, marking Meta’s latest step in the wearable technology market. The glasses will reportedly be based on Oakley’s Sphaera model, known for its wraparound frame, often used by runners and cyclists.

Meta Targets the Action Sport Segment

Unlike the Ray-Ban Meta glasses, which feature side-mounted cameras and a lifestyle focus, the Oakley version will include a center-mounted camera for better point-of-view recording. It is expected to offer similar features, such as voice commands, photo and video capture, and Meta’s AI assistant. However, the glasses will not include a display.

The new design targets the action sports segment, where Meta could compete with GoPro (GPRO) by offering lightweight, hands-free recording for cycling, running, and other high-movement activities.

The product continues Meta’s collaboration with EssilorLuxottica, which owns both Oakley and Ray-Ban. More than 2 million Ray-Ban Meta glasses have been sold, and the Oakley launch appears to be aimed at diversifying the lineup and extending its reach into athletic use cases.

Ties to Meta’s Broader Hardware Strategy

The Oakley release is part of a larger plan by Meta to lead in immersive hardware. Just days before the Oakley reveal, reports confirmed that Meta has been negotiating exclusive content deals with major Hollywood studios, including Disney (DIS) and A24, for its upcoming headset, codenamed “Loma.”

The Loma device will resemble oversized eyeglasses more than traditional VR headsets and will pair with a pocket-sized processor. It is expected to be priced below $1,000 and offer better visuals than Meta Quest. By investing in content, Meta hopes to attract a broader audience beyond gaming. The strategy contrasts with Apple’s (AAPL) Vision Pro launch, which offered limited exclusive content. Meta is aiming to bundle hardware and entertainment, making the platform more appealing.

Reality Labs, the division behind Meta’s wearables and AR/VR tech, lost $17.7 billion in 2024 on $2.1 billion in revenue. Despite the losses, Meta continues to build toward a future beyond smartphones, betting on smart glasses and immersive experiences as the next major computing shift. The Oakley glasses and the Loma headset represent different branches of the same tree.

_{Reality Labs Revenue and Losses: Meta’s VR Division Continues to Operate Deep in the Red. Source: Main Street Data}

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The Street’s analysts see Meta Platforms as a Strong Buy, with an average META stock price target of $699.81. This implies a 0.33% downside.

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