Meta Platforms (META) is planning to spend $20 billion this year on developing augmented and virtual reality technologies for its popular smart glasses.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Meta CEO Mark Zuckerberg recently said that 2025 will be a “defining year” for smart glasses. The company has already spent $80 billion on the virtual reality and augmented reality technologies needed to develop smart glasses since the company first entered the space in 2014. Now, the company’s investment in VR and AR smart glasses looks likely to surpass $100 billion.
Meta is reportedly planning to invest $20 billion in its Reality Labs unit that is responsible for making the company’s Ray-Ban Meta smart glasses. On the company’s recent earnings call with analysts and media, Zuckerberg referred to the glasses as a “real hit,” along with its Quest VR headsets.
One Million Sales
Although Meta doesn’t breakout sales of its smart glasses, The Financial Times has reported that the company sold one million sets of the VR Ray-Bans in 2024 alone. With sales accelerating, Meta plans to pour an additional $20 billion into the Reality Labs unit this year as it develops next generation Ray-Ban smart glasses. The glasses are produced in partnership with EssilorLuxottica, Ray-Ban’s parent company.
Some analysts have questioned the amount of money Meta continues to throw at Reality Labs given that the business unit had sales of only $2.1 billion last year. Operating losses at Reality Labs reached a record $17.7 billion during 2024 as the unit continues to work on cutting edge though unproven technologies.
The smart glasses are equipped with tiny cameras, microphones, and speakers that allow users to take pictures, chat with an AI assistant, and listen to music. Meta plans to launch the latest version of the glasses this year and they will feature a small display for the first time. META stock has risen 54% over the last 12 months.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 47 Wall Street analysts. That rating is based on 43 Buy, three Hold, and one Sell recommendations issued in the past three months. The average META price target of $754.82 implies 7.32% upside from current levels.
