Warby Parker Shares Surge 16% As Google Injects $150 Million—A Major Shake Up in the Smart Glasses Market
TradingKey - During the Google I/O 2025 conference, Google (NASDAQ: GOOGL) announced it will invest up to $150 million in consumer eyewear brand Warby Parker (NYSE: WRBY). The two companies will collaborate on developing AI smart glasses powered by Android XR.
This announcement significantly boosted Warby Parker's stock, closing up by 15.63% on May 20, marking its largest intraday rise since 2022.
According to the cooperation agreement, Google committed an upfront $75 million to help cover the cost of Warby Parker's product development and commercialization. The search engine giant would also invest another $75 million, if Warby Parker hits certain development milestones, for a portion of the eyewear company's equity.
The market is optimistic about Google's technological capabilities and financial backing, as well as Warby Parker's strengths in eyewear retail channels and fashion design. Analysts believe that this partnership could challenge Meta (NASDAQ: META) and Ray-Ban in the competitive landscape of smart glasses.
Previously, Meta partnered with EssilorLuxottica to launch Ray-Ban smart glasses. The second generation of this product has already sold over one million units in 2023, and there are plans for a third generation featuring a display set for release in 2025.
This collaboration between Google and Warby Parker is viewed as a key strategic move for Google's return to the smart glasses arena, filling the market gap left after Google Glass failed due to privacy controversies back in 2013.
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