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AI glasses have become a new growth pole, and Meta is expected to use this to reconstruct the valuation narrative (Jefferies)

2026-07-22·ima-daily5min-0722-20-84a0ec7421

Street Signal | AI glasses have become a new growth pole, and Meta is expected to use this to reconstruct the valuation narrative (Jefferies)

The Jefferies team experienced Meta’s many AI glasses and approved them, believing that they have advantages in terms of camera quality, audio effects, and wearing comfort. It is estimated that if the popularity of AI glasses reaches the level of Apple Watch, the revenue opportunity of AI glasses hardware can reach 14 billion to 18 billion US dollars.

In the long term, additional growth can be achieved through subscription services, advertising and other channels. The report believes that the current market has not yet priced in this long-term growth curve. We believe that AI glasses will become Meta’s new user growth and monetization vehicle and reconstruct Reality Labs’ business narrative.

The market has always been skeptical of Meta Reality Labs’ huge investment, but Jefferies believes that the successful commercialization of AI glasses will completely change the market’s narrative of Reality Labs from a “cash-burning department” to a “growth engine.” This revaluation has not yet occurred.

One-sentence conclusion: Meta’s AI glasses product experience exceeds expectations and has the potential to become the next computing platform. Jefferies estimates that its hardware revenue opportunities are huge and will reconstruct Meta’s valuation narrative. It is highlights to buy. Positive/negative: Positive for Meta Platforms (META.US).

The market has doubts about Meta Reality Labs' losses and the rate of return on AI investment. However, as a new growth curve, AI glasses' long-term value has not been fully priced by the market, and it is a huge opportunity that has not been recognized. Catalysts:

1) Quarterly sales data of Meta AI glasses;

2) Functional upgrades of subsequent versions of AI glasses (such as display, translation);

3) Progress in the construction of AI glasses-related application ecology and developer communities.

Full text

AI glasses have become a new growth pole, and Meta is expected to use this to reconstruct the valuation narrative (Jefferies)

The Jefferies team experienced Meta’s many AI glasses and approved them, believing that they have advantages in terms of camera quality, audio effects, and wearing comfort.

The Jefferies team experienced Meta’s many AI glasses and approved them, believing that they have advantages in terms of camera quality, audio effects, and wearing comfort. It is estimated that if the popularity of AI glasses reaches the level of Apple Watch, the revenue opportunity of AI glasses hardware can reach 14 billion to 18 billion US dollars. In the long term, additional growth can be achieved through subscription services, advertising and other channels. The report believes that the current market has not yet priced in this long-term growth curve. We believe that AI glasses will become Meta’s new user growth and monetization vehicle and reconstruct Reality Labs’ business narrative. The market has always been skeptical of Meta Reality Labs’ huge investment, but Jefferies believes that the successful commercialization of AI glasses will completely change the market’s narrative of Reality Labs from a “cash-burning department” to a “growth engine.” This revaluation has not yet occurred. One-sentence conclusion: Meta’s AI glasses product experience exceeds expectations and has the potential to become the next computing platform. Jefferies estimates that its hardware revenue opportunities are huge and will reconstruct Meta’s valuation narrative. It is highlights to buy. Positive/negative: Positive for Meta Platforms (META.US). The market has doubts about Meta Reality Labs' losses and the rate of return on AI investment. However, as a new growth curve, AI glasses' long-term value has not been fully priced by the market, and it is a huge opportunity that has not been recognized. Catalysts: 1) Quarterly sales data of Meta AI glasses; 2) Functional upgrades of subsequent versions of AI glasses (such as display, translation); 3) Progress in the construction of AI glasses-related application ecology and developer communities.

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