Shoppers eager to gift generative AI-powered gadgets this holiday season may face limited choices, according to a CNBC report. Generative AI has become a buzzword captivating Silicon Valley since the launch of OpenAI’s ChatGPT in November 2022.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
The report quoted Paul Gagnon, VP of analyst firm Circana, who noted that earlier this year, there was considerable excitement at trade shows about the potential of GenAI devices. At CES, startups like Humane and Rabbit created buzz with products touted for their ability to translate, take voice memos, and answer questions.
Consumers Are Slow to Embrace Such Devices
However, consumers have been slow to embrace such devices. Many reviewers describe them as “too slow and too prone to failure.” One key issue, according to Ben Bajarin, CEO of market research firm Creative Strategies, is that these gadgets lack the powerful chips and components needed to compete with established technologies like smartphones.
Moreover, consumers are staying away from such gadgets due to their high prices and unclear functionality, according to Bajarin.
Meta’s Ray-Ban Smart Glasses Remain a Tough Sell
This means that products like Meta’s (META) Ray-Ban smart glasses, which allow users to take photos, listen to music, and interact with an AI assistant, are proving to be a tough sell. These glasses do not offer augmented reality features that might captivate buyers. Additionally, Bajarin stated that these glasses still rely on strong internet connections and smartphone integration. These factors could lead to frustrating delays for users.
Meta is offering these glasses at a 20% discount through December 2. As a result, a pair of Ray-Ban Meta Skyler glasses will cost $239.20 instead of the previous price of $299 if purchased online.
Is META a Buy, Hold or Sell?
Analysts remain bullish about Strong Buy stock, with a Strong Buy consensus rating based on 40 Buys, three Holds, and one Sell. Over the past year, META has surged by more than 70%, and the average META price target of $662.62 implies an upside potential of 16.3% from current levels.
