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Meta Platforms (META) has reportedly acquired a nearly 3% stake in EssilorLuxottica (ESLX, ESLOY)—the world's largest eyewear maker and parent company of Ray-Ban and Oakley—in a deal valued at $3.5 billion, according to Bloomberg. Sources indicate that Meta may increase its stake to 5% over time.

The move aligns with CEO Mark Zuckerberg's long-standing interest in taking a stake in ESLX, as the two companies already collaborate on Ray-Ban smart glasses equipped with built-in cameras and an AI assistant. The investment highlights Meta's growing ambitions in wearable technology and its efforts to control a larger portion of its hardware supply chain. 

"We would view the acquisition of a minority investment in ESLX by Meta as a meaningful development, showcasing ESLX's importance in the emerging wearables category - with revenue and cost of capital driven upside," Goldman analyst Louise Singlehurst wrote in a note earlier. 

Singlehurst said, "The newsflow of Meta's stake follows the announcement of the launch of Oakley Meta (June 20). We are Buy-rated, seeing a compelling defensive compounder with asymmetric product-led upside."

The analyst's 12-month price target for ESLX is 285 euros... 
 

In April, Singlehurst shared app download data from SensorTower showing "solid" traction for the Meta Ray-Ban app.
 

This is because Meta's smart glasses, without optics, are priced significantly lower than Apple's Vision Pro, which costs several thousand dollars. CEO Tim Cook severely miscalculated on price.

Related:

• Dec. 2024: Meta Smart Ray-Ban Glasses Big Winner? Goldman Finds App Downloads Hit 200% YoY​

• Jan. 2025: ​​​​​​Popularity Of Meta Smart-Glasses Erupt As Apple Vision Pro Demand Vanishes​

• April 2025: Meta To Expand Ray-Ban Smart Glasses Lineup With Display-Enabled Model​​​​​​

Bernstein analysts said increasing ties between Meta and ESLX "represent another step in Meta's commitment to the smart-glasses category." 

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