Meta Platforms (NASDAQ: META) experienced a significant drop in share value after its metaverse push in 2021. However, shares have surged by 500% since 2022, focusing on AI-enabled advertising over metaverse. Meta’s investment in EssilorLuxottica indicates a shift towards smart glasses, a move seen as crucial for the company’s future.

Reality Labs, Meta’s struggling segment, has generated low revenue and high operating losses. Despite this, Meta’s investment in EssilorLuxottica shows a deep commitment to smart glasses. By targeting the everyday market for smart glasses, Meta aims to increase sales and profitability, especially with upcoming releases like Oakley and Prada smart glasses.

As Meta focuses more on smart glasses, Reality Labs faces challenges to achieve profitability. Competition from Google and its partners threatens Meta’s market share. Strong sales growth in smart glasses is crucial for Meta’s success in 2025, with potential upsides for shares. Failure to do so could result in losses as the competition intensifies.

Read more at Nasdaq: 2025: A Pivotal Year for Smart Glasses As Meta Invests in Ray-Ban