Warby Parker’s Strategic Partnership with Google: A High-Visibility Opportunity Justifying a Buy Rating

William Blair analyst Dylan Carden has maintained their bullish stance on WRBY stock, giving a Buy rating on May 9.

Dylan Carden has given his Buy rating due to a combination of factors surrounding Warby Parker’s recent partnership with Google. This collaboration involves a significant investment from Google, totaling $150 million, which is aimed at developing AI-powered eyewear. This investment not only covers product development and commercialization costs but also includes an option for Google to invest in Warby Parker’s equity.
The partnership with Google offers Warby Parker a relatively risk-free opportunity to expand its product line, potentially enhancing its market position. Additionally, Warby Parker’s shares are currently valued attractively, with expectations of sustained earnings growth of 25% or more over the next five years. While there are risks related to potential demand or margin pressures from tariffs, the Google partnership provides a high-visibility opportunity in a rapidly evolving market, justifying the Buy rating.

In another report released on May 9, Telsey Advisory also maintained a Buy rating on the stock with a $22.00 price target.

Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WRBY in relation to earlier this year.