Warby Parker (WRBY): Valuation Check After 2026 AI Smart Glasses Partnership With Google

Warby Parker (WRBY) shares pushed higher after Google used The Android Show XR Edition to confirm their jointly developed AI smart glasses are targeting a 2026 launch, spotlighting Warby Parker’s entry into connected eyewear.

See our latest analysis for Warby Parker.

The 13.27% 1 day and 23.46% 30 day share price returns suggest momentum is snapping back after a tougher stretch, even though the 1 year total shareholder return remains modestly negative and the 3 year total shareholder return still sits comfortably positive.

If this kind of tech enabled retail story has your attention, it could be a good moment to scout other high growth tech and AI stocks that might be setting up for their next move.

With shares still trading only slightly below Wall Street’s price target despite double digit revenue growth and a dramatic swing into profitability, investors now face a key question: is Warby Parker still a buy, or is future growth already priced in?

Most Popular Narrative Narrative: 5.3% Undervalued

With Warby Parker closing at $21.26 against a narrative fair value of $22.45, the story hinges on whether profitability momentum can keep surprising to the upside.

The partnership with Google to develop AI-powered intelligent eyewear positions Warby Parker to enter a substantially larger market, leveraging advancements in wearable technology and artificial intelligence to drive new, higher-margin revenue streams in the future.

Read the complete narrative.

Curious how mid-teens revenue growth, expanding margins, and a premium future earnings multiple all intersect in one forecast. Want to see the full math behind that conviction.

Result: Fair Value of $22.45 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slowing e commerce growth and aggressive store expansion, along with higher fixed costs, could pressure margins and challenge expectations for sustained mid teens revenue growth.

Find out about the key risks to this Warby Parker narrative.

Another Angle on Valuation

On price to sales, Warby Parker is anything but cheap. The stock trades at 3.1 times sales versus 0.5 times for the US specialty retail industry and a 1.4 times fair ratio. This suggests investors are paying up today and leaving less room for error if growth stumbles.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Warby Parker Narrative

If you see the setup differently or simply want to dig into the numbers yourself, you can build a fresh narrative in just a few minutes: Do it your way.

A great starting point for your Warby Parker research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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