Meta Platforms ( META ) Inc is trading higher Thursday after the Wall Street Journal reported that it plans to acquire a 5% stake in eyewear company EssilorLuxottica ( ESLOF ) .

What Happened: EssilorLuxottica ( ESLOF ), Meta’s partner for the Ray-Ban smart glasses, with an investment value of about 4.5 billion euros ($5 billion), based on EssilorLuxottica's ( ESLOF ) market value.

The Ray-Ban Meta smart glasses, introduced last year, can take calls, play some music, help do live streams, and even search for things that you look at.

Sales of the latest Ray-Ban Meta smart glasses have surpassed expectations. Meta aims to leverage this momentum to develop more devices in collaboration with EssilorLuxottica ( ESLOF ).

In June, CEO Mark Zuckerberg teased the company's upcoming "full holographic" glasses, an internal project dubbed Orion.

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The third generation of Ray-Ban Meta glasses, expected to feature a small screen display, is anticipated for the 2025 holiday season.

The Ray-Ban brand's popularity is important for the success of wearable tech. Additionally, EssilorLuxottica ( ESLOF ) also owns LensCrafters, so having a stake helps in introducing the Ray-Ban Meta to users requiring prescription lenses.

The partnership between Meta and EssilorLuxottica ( ESLOF ) began with the first-generation Ray-Ban Stories in 2021. Although the initial device struggled, the second-generation Ray-Ban Meta glasses, released in September, have performed significantly better, featuring improved cameras and AI technology.

Zuckerberg noted in April that the market for such devices is developing faster than expected.

EssilorLuxottica ( ESLOF ) recently announced a $1.5 billion deal for the Supreme brand and acquired an 80% stake in Germany's Heidelberg Engineering, further expanding its portfolio.

Meta stock has gained more than 50% in the last 12 months. Investors can gain exposure to the stock via Vanguard Communication Services ETF and Communication Services Select Sector SPDR Fund ( XLC )

Price Action: META shares are trading higher by 1.31% at $468.02 at last check Thursday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.