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Warby Parker (WRBY) Is Up 60.5% After Google-Backed AI Glasses Deal Redefines Its Tech Ambitions

Simply Wall St · 12/11/2025 18:27
  • Earlier this month, Alphabet’s Google confirmed that its renewed push into AI-powered smart glasses includes a multi-year collaboration with Warby Parker, aiming to launch lightweight Android XR- and Gemini-enabled eyewear in 2026 with both display and audio-focused models.
  • The partnership goes beyond co-branding: Google has committed up to US$150 million tied to product milestones, while Warby Parker is investing a similar amount and gaining an equity stake, effectively repositioning the eyewear retailer as a potential player in wearable AI rather than a pure direct-to-consumer brand.
  • Next, we’ll examine how this Google-backed AI glasses initiative could reshape Warby Parker’s investment narrative around wearable technology and margins.

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Warby Parker Investment Narrative Recap

To own Warby Parker today, you need to believe it can compound value both as an omnichannel eyewear retailer and as an emerging wearable tech partner. The Google AI glasses collaboration introduces a new short term catalyst around product milestones, but also amplifies execution risk if development costs rise without clear consumer traction.

The most relevant recent announcement is Google’s commitment of up to US$150,000,000, matched by Warby Parker, to co-develop Android XR and Gemini powered glasses slated for 2026. This capital and product roadmap tie the core retail story to a higher risk, higher potential margin category that could either support earnings growth or strain profitability if adoption disappoints.

However, investors should be aware that if the AI eyewear project underdelivers...

Read the full narrative on Warby Parker (it's free!)

Warby Parker's narrative projects $1.2 billion revenue and $85.4 million earnings by 2028. This requires 14.8% yearly revenue growth and a $94.6 million earnings increase from -$9.2 million today.

Uncover how Warby Parker's forecasts yield a $22.45 fair value, a 24% downside to its current price.

Exploring Other Perspectives

WRBY 1-Year Stock Price Chart
WRBY 1-Year Stock Price Chart

Five fair value estimates from the Simply Wall St Community span roughly US$4.17 to US$25.60 per share, underlining how far apart individual views can be. As you weigh those perspectives against the Google backed AI glasses catalyst, consider how much execution risk around this unproven category you are personally comfortable underwriting.

Explore 5 other fair value estimates on Warby Parker - why the stock might be worth as much as $25.60!

Build Your Own Warby Parker Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.