Meta Wins Wall Street Votes of Confidence With Cl-AI-rvoyant Glasses

Meta CEO Mark Zuckerberg drew heaps of fashion and lifestyle coverage for a “tech bro glow up” in which he traded his trademark monochrome hoodies for chain necklaces, much blogged–about shearling coats and his very own designer T-shirts.

This week, his influencer status took an appropriately tech-centered turn, as Meta debuted a new range of AI-powered augmented reality smart glasses in partnership with eyewear brands Ray-Ban and Oakley. One leading observer, Deepwater Asset Management cofounder Gene Munster, wrote that, with his social media giant’s deeper push into hardware, Zuck has the “power to will [AI] glasses into reality long term,” taking his personal makeover global. Shares in Meta, up 33% this year, edged up another 0.6% Thursday as Wall Street analysts lined up to reaffirm their bullish view on the bro-in-chief.

The Future is Brando

Zuckerberg launched the AI-powered glasses on Wednesday, the same day the Federal Reserve eased monetary policy by lowering its benchmark interest rate, which is expected to add to Wall Street’s recent rally. Deliberate or not, it was an auspicious day to unveil the devices, which feature a full-color, high-resolution screen where users can make video calls and review messages, as well as a high-end camera lens. The Ray-Ban model can be paired with a “neural wristband” that enables users to perform tasks such as sending messages by using hand gestures.

That may not yet sound like a product with mass appeal, and it’s true: Unlike the original Ray-Bans, Meta’s AI version hasn’t had its bad boy, Marlon Brando in The Wild One, moment to propel it to the mainstream. Wall Street seems to think it could happen in the medium term:

• “Given extensive audio and visual use cases, and AI enhancement capabilities, we remain optimistic that AR glasses are likely to become the leading device for the AI era,” Bank of America analysts said, though they cautioned that Meta’s newest hardware, given its $800 price point and “limited style choices,” will likely be a precursor to mass adoption.
• “I believe glasses will go mainstream, but not for a while,” wrote Deepwater’s Munster, who estimates Meta’s AI-powered glasses sales will grow from 5 million this year to 50 million in 2030, after which it “could scale into the high hundreds of millions of units annually.”

Street Style: Meta will likely soon face competition from Amazon, Alphabet, Snap and other tech firms with augmented-reality glasses in different stages of development. Apple is reportedly developing its own commercial hardware as well. Meta shares hit $783.50 on Thursday, while analysts at BofA, JPMorgan, Morgan Stanley, Stifel, Truist and Wedbush all affirmed their buy ratings with price targets between $850 (Morgan Stanley) and $920 (Wedbush). In other words, Zuck’s fall collection won’t be his last turn on the wearables fashion runway.