Warby Parker Surges 10.8% on AI Glasses Hype: Can the Momentum Hold?

Summary
• Warby Parker (WRBY) rockets 10.8% intraday to $29.455, breaking above its 52-week high of $31.00.
• Bloomberg report reveals Meta and EssilorLuxottica plan to double AI smart glasses production by year-end.
• Trading volume spikes to 3.7M, 80% above its 3.72% turnover rate average.

Warby Parker’s shares are surging on a wave of optimism fueled by Meta’s rumored expansion in AI-powered smart glasses. The stock’s 10.8% rally—its largest intraday gain since 2023—reflects investor bets on the eyewear retailer’s strategic position in the wearable tech boom. With the stock trading near its 52-week high and technical indicators flashing bullish signals, the question now is whether this momentum can sustain.

Meta and EssilorLuxottica's AI Glasses Expansion Ignites WRBY Optimism
Warby Parker’s meteoric rise stems from a Bloomberg report revealing Meta Platforms and EssilorLuxottica are doubling production of AI-powered smart glasses by year-end. This development amplifies demand for wearable tech, positioning Warby Parker—already partnered with Google for AI glasses—as a key beneficiary. The stock’s 10.8% surge reflects investor confidence in the company’s ability to capitalize on the growing smart eyewear market, despite its current P/E ratio of 355.38x, which remains elevated compared to sector peers.

Tech Hardware Sector Awaits Apple’s Lead
While Warby Parker’s rally is driven by niche AI glasses demand, the broader Technology Hardware sector remains cautious. Sector leader Apple (AAPL) trades flat with a 0.22% intraday gain, signaling mixed sentiment. Unlike WRBY’s speculative surge, Apple’s muted performance highlights the sector’s reliance on macroeconomic clarity. Investors are watching whether Apple’s upcoming product launches—particularly in wearables—can reinvigorate the sector’s momentum.

Bullish WRBY Plays: ETFs and Options for the AI Glasses Rally
• MACD: 1.14 (above signal line 0.98), RSI: 50.67 (neutral), Bollinger Bands: $29.70 (upper), $25.62 (middle), $21.55 (lower)
• 200-day MA: $21.97 (far below current price), 30-day MA: $24.34 (support near $26.45)

Warby Parker’s technicals suggest a continuation of its bullish trend. The stock is trading above its 200-day MA and within the upper Bollinger Band, indicating strong momentum. Key resistance lies at $30.00 (52-week high), while support is near $26.45 (30-day support).

Top Options Plays:
• WRBY20260123C26.5 (Call):
- Strike: $26.50, Expiry: 2026-01-23, IV: 77.77%, Delta: 0.806, Theta: -0.127, Gamma: 0.069, Turnover: 353
- Leverage Ratio: 8.35% (high), IV: 77.77% (moderate), Gamma: 0.069 (sensitive to price swings).
- This call option offers aggressive upside potential if WRBY closes above $26.50 by expiry. With a 77.77% IV and 8.35% leverage, it’s ideal for short-term bullish bets.
• WRBY20260123P26.5 (Put):
- Strike: $26.50, Expiry: 2026-01-23, IV: 95.65%, Delta: -0.233, Theta: -0.039, Gamma: 0.062, Turnover: 80
- Leverage Ratio: 36.84% (high), IV: 95.65% (elevated), Gamma: 0.062 (moderate sensitivity).
- This put provides downside protection if the AI hype falters. Its 95.65% IV and 36.84% leverage make it a high-risk, high-reward hedge.

Payoff Estimate: A 5% upside to $30.93 would yield ~$4.43 per WRBY20260123C26.5 contract. Aggressive bulls should target a breakout above $30.00; if not, the put offers a safety net.

Backtest Warby Parker Stock Performance
The performance of Warby Parker (WRBY) after an 11% intraday surge from 2022 to the present has shown favorable results, with a win rate that has risen from approximately 53% on the first day to 75% by the 20th day. This indicates a positive trend in the stock's performance following the surge event.1. Substantial Price Increase: WRBY experienced a significant price surge, with a 30% increase over a six-day winning streak, leading to a cumulative gain of $800 million and a market cap of $3.5 billion.2. Strong Institutional Support: Institutional support for WRBY has increased, with Loop Capital naming the company a 'Top-Pick' for 2026, and Piper Sandler and BTIG raising their price targets to $32.3. Earnings and Revenue Growth: Warby Parker's financial performance has been robust, with a reported revenue of $221.7 million in Q3 2025 and an earnings per share of $0.05, which may have contributed to the stock's positive performance.4. Market Sentiment: Analyst upgrades and a breakout from a short squeeze have further boosted investor confidence in WRBY, leading to increased trading volume and a substantial rise in the stock's price.In conclusion, WRBY's performance following the 11% intraday surge from 2022 to the present has been impressive, with strong institutional support, substantial price increases, and solid financial results all contributing to the stock's positive trajectory.

Bullish Momentum Unlikely to Subside: WRBY Eyes $30.00 as Apple Trails 0.22%
Warby Parker’s 10.8% surge is a testament to the AI glasses market’s explosive potential. With Meta and EssilorLuxottica doubling production, WRBY’s partnership with Google positions it as a key player in this niche. Technicals and options data suggest the rally could extend toward $30.00, though the stock’s 355x P/E remains a hurdle. Investors should monitor the 52-week high and $26.45 support level. Meanwhile, sector leader Apple’s 0.22% gain underscores the sector’s cautious stance. Act now: Buy WRBY20260123C26.5 for upside or WRBY20260123P26.5 as a hedge if the $30.00 level falters.