Meta Platforms has acquired almost 3% of EssilorLuxottica, the parent company of Ray-Ban and Oakley, as the social media giant deepens its investment in AI-powered smart glasses technology.

The strategic investment reflects Meta’s long-term commitment to developing wearable AI devices in partnership with the European eyewear manufacturer.

BofA Securities analyst Justin Post responded to the news by raising Meta’s price target to $765 from $690 while maintaining a “Buy” rating on the stock.

The analyst cited the investment as evidence of Meta’s focused approach to smart glasses within its broader hardware and AI wearable strategy.

According to industry reports, Meta may have the option to increase its stake in EssilorLuxottica to 5% in the future, suggesting potential for deeper collaboration between the companies.

The partnership has already produced the Ray-Ban Meta smart glasses, which feature AI capabilities including voice commands, camera functionality, and integration with Meta’s artificial intelligence systems.

The investment signals Meta’s strategic pivot toward smart glasses as a key component of its AI hardware portfolio, potentially at the expense of its virtual reality initiatives.

BofA analysts suggest that Meta’s VR goggles are likely to underperform expectations, while smart glasses represent a more promising avenue for consumer adoption of AI-powered wearable technology.

The Ray-Ban Meta smart glasses have gained traction in the consumer market by combining familiar eyewear aesthetics with advanced AI features, avoiding the bulky appearance often associated with early smart glass prototypes.

The devices allow users to capture photos and videos, make calls, listen to music, and interact with Meta’s AI assistant through voice commands.

EssilorLuxottica brings significant expertise in optical technology, manufacturing capabilities, and global distribution networks to the partnership.

The company’s portfolio includes iconic brands like Ray-Ban, Oakley, Persol, and Vogue Eyewear, providing Meta with access to established consumer relationships and retail channels.

The collaboration represents a notable departure from Meta’s previous hardware ventures, which often relied on internal development or partnerships with technology-focused manufacturers.

By investing directly in an established eyewear company, Meta gains access to decades of optical engineering expertise and consumer insight in the wearable accessories market.

Industry observers view the investment as validation of the smart glasses market’s potential, particularly as AI capabilities become more sophisticated and consumer acceptance of wearable technology grows.

The partnership positions both companies to compete with potential smart glasses offerings from technology giants, including Apple and Google.

The financial investment also strengthens the business relationship between the companies, potentially providing more favourable terms for future product development and ensuring priority access to EssilorLuxottica’s manufacturing capacity and innovation resources.

This strategic alignment could accelerate the development timeline for next-generation smart glasses with enhanced AI capabilities.

Meta’s focus on smart glasses aligns with broader industry trends toward ambient computing, where AI assistants integrate seamlessly into everyday objects and activities.

The investment suggests confidence that smart glasses will eventually achieve mainstream adoption as AI technology improves and form factors become more refined.