Meta AI glasses unlock $14B-$18B revenue opportunity as analysts raise price targets
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Meta has a 'multi-billion dollar' opportunity with its glasses, says Jefferies
Meta is likely to bounce back by leveraging a "multi-billion 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.
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Rothschild Redburn raises Meta stock price target on AI business shift By Investing.com
Investing.com - Rothschild Redburn raised its price target on Meta Platforms Inc. (NASDAQ:META) to $1,000 from $900 while maintaining a Buy rating on the stock. The firm expects Meta to shift its artificial intelligence focus from a consumer assistant to a small business AI tool, which the analyst said would result in a longer growth runway, wider moat, and higher margins and returns. Meta already boasts an impressive gross profit margin of 82% according to InvestingPro data, with the company's strong profitability supporting its $1.64 trillion market capitalization. Rothschild Redburn forecasts a 45% internal rate of return for the small business product, above both the core advertising business and an AI cloud business. The analyst expects Meta to release a small business AI tool that builds ecommerce storefronts, creates and runs ads, handles payments, catalogues and customer relationship management end to end. Meta's opportunity derives from its distribution, with approximately 250 million businesses already on its platforms, and bundled higher return on advertising spend offering. Rothschild Redburn said a pivot to a small business AI tool would unlock a revenue opportunity of over $209 billion excluding China, inflecting return on invested capital. The company's current return on equity stands at 33%, while revenue growth has accelerated to 26% over the last twelve months. InvestingPro analysis suggests the stock is currently undervalued, with shares trading at $645.85. Investors can explore more undervalued opportunities on the Most Undervalued stocks list. The firm said Meta's core business is strengthened by regulation, widening the moat, reducing competition and lifting structural margins. The new price target is based on 2027 GAAP earnings per share of $43.20 at 23 times. This compares to Meta's current P/E ratio of 23.6 and trailing twelve-month EPS of $27.49. For deeper insights into Meta's valuation and growth prospects, InvestingPro offers a comprehensive Pro Research Report, one of 1,400+ available for top US equities, transforming complex data into actionable intelligence. The firm said Meta's social media runway remains long, with approximately 30% more time spent on the platforms due to strengthening cultural, structural, chemical and psychological tailwinds. In other recent news, Meta Platforms Inc. has been the focus of several analyst reviews and legal developments. Jefferies reiterated a Buy rating and maintained a price target of $825.00 for Meta, highlighting the potential of the company's AI glasses. The firm tested three models, including the Ray-Ban Meta Gen2 and the Oakley Meta, noting their camera quality and seamless setup. Meanwhile, BofA Securities also reiterated a Buy rating, setting a price target of $835.00. BofA revised its second-quarter estimates to $60.6 billion in revenue and $7.50 in earnings per share, slightly above Street expectations. In legal matters, Meta faces a jury trial in Los Angeles over claims that social media platforms are addictive to minors, following Snap Inc.'s tentative settlement in a similar case. Additionally, BMO Capital Markets maintained a Market Perform rating with a $720.00 price target, despite concerns about Meta's projected capital expenditures for 2026. These developments come amid Meta's recent workforce reductions and declining job postings. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Jefferies reiterates Meta stock rating on AI glasses opportunity By Investing.com
Investing.com - Jefferies reiterated a Buy rating and $825.00 price target on Meta Platforms Inc. (NASDAQ:META) following hands-on testing of the company's AI glasses products. According to InvestingPro analysis, Meta currently appears undervalued, trading below its Fair Value -- placing it among opportunities on the platform's most undervalued stocks list. Jefferies analyst Brent Thill purchased and tested three models: the Ray-Ban Meta Gen2 priced at $379, the Oakley Meta at $499, and the Ray-Ban Display with Neural Band at $799. The firm noted camera quality, seamless setup, and a normal-glasses form factor as standout features. The firm estimates a $14 billion to $18 billion hardware revenue opportunity within the next few years, assuming Apple Watch-like adoption at an average selling price of $400. This translates to approximately 35 million to 45 million units. Meta's impressive gross profit margin of 82% positions the company well to capitalize on this hardware expansion while maintaining strong profitability. Meta AI monthly active users have reached approximately 1 billion, while daily glasses users are tripling year-over-year. The company sold over 7 million units in 2025, with partner EssilorLuxottica reportedly doubling production capacity to 20 million units in 2026. The AI glasses are screen-light, voice-first wearables with an integrated camera and open-ear audio, connected to the Meta AI app. Jefferies sees potential for additional revenue from AI subscriptions, advertising, and commerce monetization over time. For deeper insights into Meta's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available for Meta and 1,400+ other US equities on InvestingPro. In other recent news, Meta Platforms Inc. is preparing for its upcoming earnings report, with BofA Securities revising its second-quarter estimates to $60.6 billion in revenue and $7.50 in earnings per share, slightly above Street expectations. BofA Securities maintains a Buy rating with a price target of $835.00, highlighting Meta's workforce reduction by 10% in May and a significant decline in job postings in the second quarter. Jefferies also reiterated a Buy rating with a price target of $825.00, emphasizing the potential of Meta's AI glasses, including models like the Ray-Ban Meta Gen2 and Oakley Meta. Meanwhile, BMO Capital Markets has reiterated a Market Perform rating with a $720.00 price target, citing concerns over Meta's projected capital expenditure for 2026 despite recent AI developments. Baird, on the other hand, maintains an Outperform rating with a price target of $830.00, noting that while the high costs of AI infrastructure are factored into expectations, potential revenue benefits are not. Additionally, Meta remains the sole defendant facing trial in a case over claims of social media addiction, following Snap Inc.'s tentative settlement in a similar lawsuit. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Investment firms Jefferies and Rothschild Redburn raise their price targets on Meta stock, citing massive growth potential from AI-powered smart glasses and small business AI tools. With daily users tripling year-over-year and production capacity reaching 20 million units in 2026, analysts see a hardware revenue opportunity that could reshape Meta's business model and capture a multi-billion dollar market.
Meta AI Glasses Drive Multi-Billion Dollar Opportunity
Meta is positioned to capture a substantial hardware revenue opportunity through its AI-powered smart glasses, according to recent analyst assessments from leading investment firms. Jefferies maintains a Buy rating on Meta with an $825 Meta stock price target, representing nearly 28% upside potential, while Rothschild Redburn raised its target to $1,000 from $900
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. The convergence of analyst optimism reflects Meta's first-mover advantage in shipping AI glasses at scale, with no other major player currently matching its production capacity or market presence.Jefferies analyst Brent Thill estimates a $14 billion to $18 billion hardware revenue opportunity within the next few years, assuming Apple Watch-like adoption at an average selling price of $400
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. This translates to approximately 35 million to 45 million units, representing a long-term growth vector not yet reflected in current valuations. The firm conducted hands-on testing of three models: the Ray-Ban Meta Gen2 priced at $379, the Oakley Meta at $499, and the Ray-Ban Display with Neural Band at $799, noting standout features including camera quality, seamless setup, and a normal-glasses form factor that distinguishes them from bulkier competitors1
.Production Scales as User Adoption Accelerates
The momentum behind Meta's AI glasses extends beyond analyst projections into concrete market performance. Daily users of the eyewear have tripled on a year-over-year basis, while Meta AI monthly active users have reached approximately 1 billion
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. Production capacity has surged dramatically, with partner EssilorLuxottica reportedly doubling manufacturing capabilities to 20 million units in 2026, up from the 7 million units sold in 20253
. This scaling demonstrates Meta's commitment to meeting growing demand and establishing dominance in the wearable AI market before competitors can mobilize.Meta rolled out its latest line of smart glasses in late June, introducing three models: the Meta Adventurer, Fury, and Glasses by Kylie
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. These voice-first wearables feature integrated cameras and open-ear audio, connected to the Meta AI app, positioning them as screen-light alternatives to smartphone-dependent experiences. The rapid adoption rate suggests consumers are receptive to hands-free AI interaction, particularly as the technology matures and becomes more socially acceptable.Small Business AI Tool Expands Revenue Streams
Beyond hardware sales, Rothschild Redburn expects Meta to shift its artificial intelligence focus from consumer assistants to a small business AI tool, which would deliver a longer growth runway, wider moat, and higher margins
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. The firm forecasts a 45% internal rate of return for the small business product, exceeding both Meta's core advertising business and potential AI cloud offerings. This strategic pivot could unlock a revenue opportunity exceeding $209 billion excluding China, with Meta's distribution advantage providing access to approximately 250 million businesses already active on its platforms2
.The anticipated small business AI tool would build ecommerce storefronts, create and run advertisements, handle payments, and manage catalogues and customer relationships end to end. Meta's impressive gross profit margin of 82% and current return on equity of 33% position the company to maintain profitability while investing heavily in AI infrastructure. Rothschild Redburn's new price target is based on 2027 GAAP earnings per share of $43.20 at 23 times, compared to Meta's trailing twelve-month EPS of $27.49.
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Commerce and Subscription Models Create Long-Term Value
Higher-value AI-linked subscriptions and advertising are likely to drive additional upside beyond hardware sales, according to Jefferies
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. Commerce monetization opportunities linked to smart glasses could emerge as one of the biggest sources of long-term value. "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," Thill wrote1
. This vision positions Meta to intercept purchasing decisions at the moment of inspiration, fundamentally altering how consumers discover and buy products.The multi-billion dollar opportunity represents more than incremental revenue—it signals a potential transformation in Meta's business model from advertising-dependent to diversified revenue streams spanning hardware, subscriptions, and transaction-based commerce. With 57 of 65 analysts maintaining buy or strong buy ratings on the stock, Wall Street consensus supports the thesis that Meta's AI investments are creating tangible value despite shares falling roughly 9% over the past year
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. Investors should monitor adoption rates, production scaling, and the rollout of business-focused AI tools as key indicators of whether Meta can deliver on this ambitious growth trajectory.References
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