Jefferies analyst Brent Thill highlighted that Meta is positioned to capitalize on a 'multibillion-dollar' revenue opportunity with its smart glasses, which have seen a tripling in daily users year-over-year.
The firm estimates that if adoption rates mirror those of the Apple Watch, Meta could generate substantial hardware revenue, with projections of $14 billion to $18 billion based on an average selling price of $400. The production capacity for these smart glasses is expected to reach 20 million units by 2026.
Additionally, Thill noted that higher-value AI-linked subscriptions and advertising could further enhance Meta's revenue. The potential for commerce monetization through smart glasses is also seen as a significant long-term growth driver.
Jefferies' optimistic outlook aligns with broader market sentiment, as 57 out of 65 analysts covering Meta have a buy or strong buy rating, despite the stock's 9% decline over the past year