Meta has a 'multibillion-dollar' opportunity with its glasses, says Jefferies
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Meta is likely to bounce back by leveraging a "multibillion-dollar" revenue opportunity linked to its artificial intelligence-powered smart glasses, according to Jefferies. The investment firm has a buy rating on the technology name. It also has an $825 price target on shares, implying nearly 28% upside from Monday's close. "While we see areas to improve, META has a first-mover advantage as the only player now shipping at scale... [and] we see a multi-billion dollar hardware revenue opportunity" analyst Brent Thill said Monday in a note to clients. "Assuming Apple-watch-like adoption at an average selling price (ASP) of $400, we size a $14B-$18B hardware [revenue] opportunity within the next few [years], & see a [long-term] growth vector not yet priced in," he added. Meta rolled out its latest line of smart glasses in late June. It includes three models: the Meta Adventurer, Fury, and Glasses by Kylie. Their debut comes as the number of wearers of Meta glasses continues to grow. Daily users of the eyewear have tripled on a year-over-year basis, according to Jefferies. Meanwhile, production capacity for its newest wearable technology product has surged to 20 million in 2026, per the investment firm. Higher-value artificial intelligence-linked subscriptions, and advertising is likely to drive additional upside to Meta, Thill noted. Commerce monetization opportunities linked to smart glasses could also shape up to be one of the biggest sources of upside for Meta in the long term, he added. "Longer term, the bigger prize is commerce: if agentic AI shifts from browsing to delegation, AI glasses could capture user intent at the point of discovery, moving Meta closer to the transaction," the analyst wrote. Jefferies' call falls in line with consensus on Wall Street. Of the 65 analysts covering Meta, 57 have a buy or strong buy rating on the stock, LSEG data shows. Shares have fallen roughly 9% over the past year, underperforming the overall market.