Meta Platforms (META) has taken a small non-controlling stake in EssilorLuxottica (ESLOY), the world’s largest eyewear company, according to sources cited by Bloomberg. The investment is just under 3% and is valued at about $3.5 billion. Meta may consider increasing its stake to 5% in the future, although those plans aren’t confirmed yet. Following the news, EssilorLuxottica’s U.S.-traded shares closed more than 5% higher, while rival Warby Parker (WRBY) gained 4.5%.
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This move shows Meta’s growing interest in smart wearable technology as it shifts more aggressively toward artificial intelligence. Interestingly, the company has seen strong success in this space, especially with its Ray-Ban Meta smart glasses, which sold over 2 million units by February after launching in October 2023. In June, Meta expanded its smart eyewear lineup with new Oakley Meta glasses that were designed for athletes and fitness-focused users.
As a result, EssilorLuxottica has become a key partner in Meta’s wearable ambitions, not only because it owns Ray-Ban and Oakley but also due to its licensing deals with luxury brands like Prada (PRDSF), Armani, Versace, and Dolce & Gabbana. By investing in the eyewear giant, Meta is improving its position in the AI-powered wearables market and strengthening its relationship with a crucial player in the luxury eyewear space.
Is Meta a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 41 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $731.40 per share implies that shares are near fair value.
