Meta (META) is getting ready for a big event at its upcoming Connect conference. The company will showcase its first augmented reality (AR) glasses and share updates on its virtual reality and artificial intelligence products. CEO Mark Zuckerberg has long touted AR as a cornerstone of Meta’s future, referring to it as a “magnum opus.” However, this journey hasn’t been without its bumps, as the company has faced quite a few technical challenges along the way.
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Zuckerberg Confirms Prototype Progress
According to Reuters, Zuckerberg recently noted that Meta is “pretty close to being able to show off the first prototype” of the AR glasses, a sentiment that may bring relief to eager investors. The initial version will only be available internally and to select developers, with production costs running into the tens of thousands of dollars per unit. However, Meta aims to ship its first commercial glasses to consumers by 2027, when advancements in technology are expected to make production more economical.
Meta Finds Success with its Ray-Ban Meta Smart Glasses
In the meantime, while AR is still in the pipeline, Meta is finding success with its Ray-Ban Meta smart glasses, which have gained popularity thanks to the addition of an AI-powered digital assistant. The partnership with EssilorLuxottica has proven fruitful, with reports suggesting that sales of the updated smart glasses have outpaced those of the previous generation. In fact, estimates indicate over 700,000 pairs have shipped since last year’s update.
Analysts Boost Ratings on Meta’s Potential
Investors may find solace in this interim success, especially with a recent report from Brian White of Monness maintaining a Buy rating on Meta Platforms with a price target of $570. White is optimistic about Meta because of its strong focus on new ideas and big investments to improve user experiences and help advertisers. With new products coming soon and updates to its AI technology on the horizon, White thinks Meta is ready to handle challenges from regulators and the economy.
Additionally, Bank of America Securities also gave Meta a Buy rating with a price target of $563, showing a positive view on the company’s growth. As technology continues to change, Meta’s upcoming innovations might greatly influence how people interact and use tech in the future.
Although TipRanks’ Revenue Breakdown tool shows that the Reality Labs segment currently contributes only 1.4% of Meta’s revenue, analysts are optimistic that this segment will account for a larger share of the company’s future earnings.
Is Meta Stock a Buy Right Now?
Analysts remain bullish about META stock, with a Strong Buy consensus rating based on 41 Buys, three Holds, and one Sell. Over the past year, META has surged by more than 85%, and the average META price target of $586.49 implies an upside potential of 4.11% from current levels.
