Shares of Warby Parker (WRBY) are up nearly 20% on news that the eyeglass retailer has struck a partnership with Google parent company Alphabet (GOOGL) to make future smart glasses.
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News of the smart glasses partnership was announced at Alphabet’s annual I/O developer conference. Alphabet has committed up to $150 million as part of the agreement. That investment includes an upfront commitment of $75 million into product development, as well as an additional $75 million for Warby Parker if the eyeglass maker meets certain “milestones.”
Alphabet said it plans to launch a series of next generation smart glasses with Warby Parker, with the first products set to arrive after this year. The smart glasses will be built on top of Google’s Android XR, an operating system that’s primarily used with headset computers. Android XR will include Google’s Gemini AI assistant that users can control via voice commands.
Taking on Meta Platforms
In announcing plans for new smart glasses, Alphabet and Warby Parker are taking aim at the rival partnership between tech giant Meta Platforms (META) and EssilorLuxottica, the maker of Ray-Ban sunglasses. Meta and Luxottica launched the second edition of their smart glasses in 2023, and the two companies are set to rollout third generation smart glasses later this year.
“We know that these need to be stylish glasses that you’ll want to wear all day,” said Alphabet in announcing the Warby Parker deal. The new smart glasses are a return to the world of wearable tech for Alphabet. The company launched its futuristic Google Glass device in 2013 to poor sales and privacy complaints. WRBY stock is down 15% this year.
Is WRBY Stock a Buy?
The stock of Warby Parker has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on nine Buy and six Hold recommendations issued in the last three months. The average WRBY price target of $21.14 implies 2.72% upside from current levels.
Read more analyst ratings on WRBY stock
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