Meta's Smart Glasses Ambitions Could Reshape Its Future; BofA Reiterates Buy

Bank of America is maintaining a Buy rating and $765 price target on Meta Platforms (NASDAQ:META) as the company reportedly gears up to introduce a new line of premium smart glasses—a potential game-changer for its hardware strategy.

The upcoming device, codenamed Hypernova, is expected to launch by the end of the year with a price tag between $1,000 and $1,400. According to reports, these next-gen glasses will come equipped with an integrated display for real-time updates, an enhanced camera on par with smartphones, a built-in AI assistant, and multiple input methods, including gesture control and a neural wristband that interprets brain signals.

Bank of America sees this product as a potential step forward in bridging the gap between augmented reality and daily usability, especially when compared to bulkier VR headsets. Still, success will depend on overcoming critical barriers like battery life, comfort, pricing, and—most importantly—the development of a killer app that drives broad consumer adoption.

At current trading levels around $580, Meta is valued at just 20x its 2026 projected GAAP EPS, or 16x excluding the costs of Reality Labs, suggesting that investors may be assigning little to no value to its hardware initiatives.

If the company can gain traction with its smart glasses, it could enhance control over its ecosystem, from user experience to data and distribution, further strengthening its core advertising and social media businesses. Meta may also unlock new revenue streams through AI-powered tools, accessories, and subscription offerings.

Bank of America believes the upcoming launch could be pivotal in shifting market perception of Meta’s Reality Labs division—from a costly experiment to a strategic asset with monetization potential.