Warby jumps as Hedgeye sees ’10-bagger potential’

Shares of Warby Parker (WRBY) are on the rise on Monday after Hedgeye said the stock could be a “10-bagger” in five years, beginning in 2026, and that it will be “THE retail stock to own” next year. Meanwhile, the company and Google (GOOGL) announced that the AI glasses developed through their partnership are expected to launch in 2026.

RETAIL STOCK TO OWN: Hedgeye analyst Brian McGough is hosting a “Best Idea Long” presentation on December 9 to discuss why Warby Parker will be the “retail stock to own in 2026.” Further, Hedgeye said that over 5-years, “this name is a 10-bagger from its current price of $20.” The balance sheet here is “stellar,” and McGough thinks the excess cash goes to build an international brand and footprint, which the analyst contends “so few geo-centric businesses in retail can do.”

AI GLASSES COMING IN 2026: As part of today’s The Android Show XR Edition, Warby Parker and Google announced that the first lightweight, AI glasses developed through their partnership are expected to launch in 2026.

Warby first announced its partnership with Google back in May, saying “Warby Parker, a direct-to-consumer lifestyle brand focused on vision for all, today announced a partnership with Google to develop AI-powered glasses intended for all-day wear. The partnership will combine Warby Parker’s signature approach to eyewear design with Google’s industry-leading technology ecosystem, bringing the next generation of computing to a new form factor: glasses… As part of this collaboration, Google has committed up to $75 million for Warby Parker’s product development and commercialization costs. In addition, Google has committed to investing up to $75 million in Warby Parker, at Warby Parker’s option and subject to reaching certain collaboration milestones.”

PRICE ACTION: In afternoon trading, shares of Warby Parker have gained about 15% to change hands at $21.59.