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Meta Acquires 3% Stake in EssilorLuxottica Amid Growing Demand for AI-Powered Wearables
ByAinvest
Wednesday, Jul 9, 2025 2:38 am ET1min read
Meta Platforms has acquired a nearly 3% stake in EssilorLuxottica, the maker of optical products, as it looks to expand its wearables business. The deal is valued at around 3 billion euros and may increase to 5% in the future. The acquisition comes as Meta invests heavily in AI technology and as the company looks to attract new users.
Meta Platforms (META) has acquired a nearly 3% equity stake in EssilorLuxottica, the maker of optical products, in a deal valued at approximately 3 billion euros. This strategic investment is part of Meta's broader plan to expand its wearables business and integrate advanced AI technology. The acquisition comes as Meta continues to invest heavily in AI technology to attract new users and enhance its smart wearable devices.The investment has been well-received by the market, with EssilorLuxottica's stock experiencing a notable 7% surge following the announcement. Wall Street analysts maintain an "Outperform" recommendation for META, with an average price target of $728.28. GuruFocus estimates a potential downside to $544.27, offering a comprehensive analysis of META's fair value.
According to GuruFocus, the projected GF Value for Meta Platforms Inc (META) in the upcoming year is $544.27, suggesting a possible downside of 24.48% from the current price of $720.67. This estimate is based on historical trading multiples, past growth, and future business performance estimates.
The acquisition of a stake in EssilorLuxottica highlights Meta's focus on AI in wearable tech. This move is part of Meta's strategy to tap into the growing interest in smart glasses. The investment boosts Meta's AI capabilities, enhancing user experience with high-resolution cameras and open-ear speakers. Following the success of the Ray-Ban Meta glasses launched in 2023, the new 'Oakley Meta HSTN' launch reflects a strategic effort to lead in this tech space.
Investors should watch how this collaboration influences the AI wearables market, potentially boosting tech stocks focused on AI and wearables. The bigger picture is the global tech scene's shift toward AI, with brands like Meta planning to engage users through advanced wearable technology.
References:
[1] https://www.gurufocus.com/news/2965086/meta-meta-acquires-stake-in-essilorluxottica-to-boost-ai-wearables
[2] https://finimize.com/content/meta-takes-3-stake-in-ray-bans-parent-for-ai-wearables
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