Meta Platforms Doubles Down on AI as Smart Glasses Boom

Meta Platforms ( (META) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Meta Platforms shares traded higher even as OpenAI prepared a push into AI hardware, including smart glasses that could arrive by 2028. For now, Meta dominates this young category, commanding more than 70% of the global smart glasses market, with surging demand for its Ray-Ban line forcing the company to delay international expansion of its new $799 model to clear a U.S. order backlog.

Despite its leadership, Meta’s Reality Labs hardware, including smart glasses and VR/AR headsets, still represents a small slice of overall revenue, and the group is under pressure to become more sustainable, with potential price hikes under consideration. Wall Street remains upbeat: analysts rate Meta Platforms a Strong Buy, with average price targets implying roughly 30% upside from current levels.

To fund an aggressive AI build-out, Meta Platforms has cut annual stock awards by about 5% for most employees, following a 10% reduction last year. CEO Mark Zuckerberg is redirecting capital toward massive AI infrastructure spending, with 2026 capex expected at $115 billion to $135 billion, nearly double last year, while moves such as a 10% headcount cut in Reality Labs highlight the drive to protect profitability.

Even with these internal belt-tightening measures, analysts continue to see Meta Platforms as a compelling long-term AI and hardware play. The stock is rated Strong Buy by Wall Street, and consensus targets suggest over 30% potential upside, making the shares attractive for investors willing to look beyond near-term spending and compensation shifts toward the payoff from AI and wearable devices.