🕶️ Are Meta’s glasses really a hit?
Hey Snackers,
Feeling lonely? Thinking about getting a pet but don’t want to be responsible for a real-life animal? Well boy, has Casio (yes, the watchmaker) got a solution for you: “Moflin,” a furry, squeaking, AI pet reminiscent of a “Star Trek” Tribble that costs $429. OK, it’s a lot more money than a goldfish, but you can’t bring a goldfish to your picnic or snuggle with it as you fall asleep, two actual scenarios shown in its super bizarre ad.Â
The S&P 500 and Nasdaq 100 ended last week with fresh record closing highs, rising 0.5% and 0.7%, respectively. There was no trifecta of records this time around, though, as the Russell 2000 gave back some of Thursday’s mammoth gains with a 0.8% decline.
Record week aside, now we’re looking ahead with a bit of trepidation: this week is historically the worst week of the year for US stocks.
🧠Trivia time… See how well you do on our Snacks Seven Quiz. Here’s a sample question:
Which restaurant is launching a “French onion soup burger”? Check your answer.
Are Ray-Ban Meta glasses really a hit?
At last week’s Meta Connect conference, CEO Mark Zuckerberg introduced new Ray-Ban Meta Display glasses with the “Meta Neural Band” (that you wear on your wrist), wraparound Oakley Meta Vanguard glasses, and the second iteration of Ray-Ban Meta glasses.
“This is now our third year shipping AI glasses with our great partner, EssilorLuxottica,” he said, “and the sales trajectory that we’ve seen is similar to some of the most popular consumer electronics of all time.”
Meta hasn’t released hard numbers for the Ray-Ban Meta glasses, but in January The Verge reported that Zuckerberg told Meta employees that over 1 million Ray-Ban Meta glasses were sold in 2024.
Apple’s iPod dominated consumer electronics for a decade, heralding the transition to digital music. The company sold an estimated 450 million of the devices during its more than 20-year lifespan, but the first soap-bar-sized product took more than a year and a half to move a million units.
It took the iPad 28 days to sell 1 million units, the iPhone 74 days, and the Apple Watch just one day.Â
By all accounts, Zuckerberg seems extremely dedicated to the success of Reality Labs’ virtual/augmented/mixed reality glasses and headsets. After all, he did rename the company in an audacious bet that its future would be defined by the “metaverse” (but now is also all in on “superintelligence.”)
Still, the losses that Reality Labs has posted are staggering. Since Q4 2020, when the company first disclosed such numbers, the R&D-heavy division has racked up nearly $70 billion in losses.Â
The Takeaway
Early reviews of Meta’s new Ray-Ban Meta Display glasses were largely positive, despite the awkward launch event. It remains to be seen whether Reality Labs products like Ray-Ban Meta glasses are on a slow burn to success like Apple’s iPod, but until millions more consumers start putting Meta’s products on their faces, the losses will keep piling up.
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This Week's Events
August existing home sales. Earnings expected from Micron Technology and AutoZoneÂ
August new home sales. Earnings expected from KB Home and Worthington Steel
August durable orders, Q2 GDP (third estimate). Earnings expected from Costco, Accenture, CarMax, and BlackBerry
August PCE (the Fed’s preferred inflation gauge). University of Michigan final September consumer sentiment