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Ray-Ban has gone from being a cult brand to a "victim" brand because of the Meta glasses. I'd be cautious about that.
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@jkb92 Good point. That’s exactly where I see a risk—but it’s only part of the EL story. Ray-Ban is important, but EssilorLuxottica has a much broader portfolio. It would become particularly critical if Meta were to overshadow Ray-Ban’s brand image too much.
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@Jeong That's true. But I read a good analysis recently. Ray-Ban became cool because real legends, artists, and idols wore the glasses. No celebrity would voluntarily wear the glasses if Meta weren’t throwing money around. Since everyone knows that, they’re losing their cult status. And as a result, even Ray-Ban’s non-AI glasses will lose popularity, especially the models that are also available in AI versions.
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This year, the global market leader (!) $EL is expected to post a record profit of 2.7 billion euros; according to forecasts, it could exceed 3 billion next year.
By 2050, about half of the world’s population is expected to be nearsighted (also a forecast, but one with a very solid medical basis). So the business doesn’t just depend on some smart glasses from Meta. And if Meta flops, another manufacturer will simply step in to make money with glasses from $EL.
At the moment, however, there appears to be a dispute within the company’s leadership between the former Italian owner family and the new board of directors.
In 2018, following the merger of the Italian company Luxottica with the French company Essilor, the stock price moved sideways for two years.
Overall, the company is certainly a core investment in this sector. It dominates the global market, and there’s no real competition in sight. The current weakness in the stock price—which can’t be explained by fundamental business data—presents a prime buying opportunity.
Just my two cents.
By 2050, about half of the world’s population is expected to be nearsighted (also a forecast, but one with a very solid medical basis). So the business doesn’t just depend on some smart glasses from Meta. And if Meta flops, another manufacturer will simply step in to make money with glasses from $EL.
At the moment, however, there appears to be a dispute within the company’s leadership between the former Italian owner family and the new board of directors.
In 2018, following the merger of the Italian company Luxottica with the French company Essilor, the stock price moved sideways for two years.
Overall, the company is certainly a core investment in this sector. It dominates the global market, and there’s no real competition in sight. The current weakness in the stock price—which can’t be explained by fundamental business data—presents a prime buying opportunity.
Just my two cents.
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