Warby Parker (WRBY) Soars 11% on PT Hike, AI Glasses Optimism

We recently published 10 Stocks With Eye-Popping Double-Digit Gains; 4 Hit All-Time Highs. Warby Parker Inc. (NYSE:WRBY) was one of the top performers on Tuesday.

Warby Parker rallied for a third day on Tuesday, jumping 11.57 percent to finish at $25.94 apiece as investors took heart from an investment firm’s price target upgrade for its stock.

In an updated market report, TD Cowen raised its fair value target for Warby Parker Inc. (NYSE:WRBY) by 8 percent to $26 from $24 previously, buoyed by strong optimism for its artificial intelligence glasses.

Last month, Warby Parker Inc. (NYSE:WRBY) confirmed that the AI glasses—a new product in partnership with Google—is set to be launched sometime this year.

The AI glasses will incorporate multimodal AI with prescription and non-prescription lenses.

The partnership was inked in May last year, where Warby Parker Inc. (NYSE:WRBY) would design and develop the AI glasses, while Google would finance the product development for $75 million, alongside an optional investment in the former for another $75 million, subject to the achievement of certain milestones.

“Since our launch, we’ve set out to transform the optical industry by leveraging pioneering technology to design better products and experiences—and over the past 15 years, we’ve done just that,” said Warby Parker Inc. (NYSE:WRBY) co-Founder and co-CEO Dave Gilboa last month.

“Looking ahead, we believe multimodal AI is perfectly suited for glasses, enabling real-time context and intelligence to augment a wearer’s surroundings as they move through the world. We couldn’t be more excited to be partnering with Google to bring together the best of AI and the best of eyewear,” he added.

While we acknowledge the potential of WRBY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.