While husbands across the nation deal with their draining bank balances after Amazon’s prolific Prime-Day revenue numbers, it appears that Mark Zuckerberg is priming up to splurge on a shopping spree himself. 

(Source: The Daily Beast) 

Zuckerberg, the guy who turned Facebook from a door room idea (partial credit to the Winklevoss twins) into the world's largest family reunion, is now eyeing a new prize: EssilorLuxottica. 

(Source: WSJ) 

Huh? The fashion brand? Yep, you betcha. And this time, he’s looking to drop a hefty $4 billion for a 5% stake in this eyewear titan that brings us overpriced Ray-Bans and a slew of other iconic fashion items. 

(Source: Giphy) 

Now of course, for those of you keeping track, this is the same company Meta already partners with for the weird but kinda cool Ray-Ban smart glasses. But it appears Zuck the Buck wants more out of its relationship with Esslior… why? 

(Source: Giphy)

Well first off, a quick financial snapshot tells us that EssilorLuxottica is valued at a whopping 86.50 billion euros ($97 billion). Meaning A 5% stake would set Meta back around 4.33 billion euros ($4.73 billion). Of course, this seems like a sizable purchase, but for a company like Meta with a staggering market cap of about $1.2 trillion, this investment is relatively small potatoes. 

(Source: Giphy) 

But when it comes to the potential payoff? That could be huge. For instance, even though the initial reception of the Ray-Ban smart glasses was lukewarm at best back in 2021 (with only about 10% of buyers actually using them regularly)... Meta’s new glasses have made its predecessor look pale in comparison.

(Source: Reuters) 

With more featured improved cameras, faster performance, and of course, a sprinkle of AI, the glasses have smashed sales expectations.  

(Source: XR Today) 

In fact, EssilorLuxottica's CEO, Francesco Milleri, recently boasted that the new-gen Ray-Ban Meta glasses sold like hotcakes compared to the older models. And with a third-gen version expected to hit the market just in time for the 2025 holiday season, this partnership seems to be gaining immense momentum. 

(Source: Giphy) 

Plus, let’s not forget how swooned Zuckerberg is with the metaverse. These smart glasses continue to be the fuel to the fire of his extravagant 3D playground where we all interact in real-time. Think “Ready Player One” (cool movie but not at the cost of absolutely annihilating normal human interaction). 

(Source: Giphy) 

But again, by strengthening the partnership with EssilorLuxottica, Meta ensures that these glasses get better, faster, and more integrated with their metaverse ambitions. 

So with all that said, it’s understandable why Meta is gun ho on snatching up a larger stake in this luxury eyewear company. Even though Essilor owns a portfolio of other brands with a vast distribution network, including LensCrafters - the brand of Ray-Ban is as cool as it gets in the eyewear world. 

(Source: The Verge) 

And if people are going to wear weird tech on their faces, it better look good (And Ray-Ban delivers on that front). 

But what’s in it for the investors? Well the mass majority of them are already reacting positively to the news. Essilor shares jumped 3% on the news, while Meta’s saw a modest 1.2% bump. 

(Source: Reuters) 

(Source: LongPort) 

What’s even better is that analysts are optimistic as well with Bernstein analysts saying, “Meta's Ray-Ban Smart Glasses may only be a generation or two away from finding product-market fit.”

Now again, while this level of optimism is all fine and dandy, only time will tell if this strategic move actually pays off the way Meta execs and its investors think it will. But even with some holding their breath, it’s clear this double down on a partnership that’s already showing promise to position Meta as the leader in the AR revolution is worth the risk. 

(Source: Giphy) 

Obviously, the 5% stake isn’t purchased yet, but if Meta does pull the trigger on it, hopefully what comes to fruition is a rain of money making change for their investors. But in the meantime, I know one thing for sure, I’m personally passing on the smart glasses. Prime-Day already took all of my money… sigh 

Stocks.News holds positions in Amazon and Meta Platforms as mentioned in the article.