Meta (META) Stock Sees Slight Rise Amid Smartwatch Market Re-entry

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TLDRs;

  • Meta is developing a “Malibu 2” smartwatch, featuring health tracking and AI, indicating its re-entry into the wearables market.
  • Meta holds a strong position in smart glasses, integrating AI, which sets the stage for a smartwatch release in 2026.
  • Meta AI is set to extend its reach to both watches and glasses, providing effortless hands-free user engagement.
  • Meta is postponing certain product launches to manage supply chains and avoid saturating consumers with too many devices.

Meta Platforms (NASDAQ: META) experienced a slight increase in its stock value following reports that the technology giant plans to re-enter the smartwatch market with a device slated for 2026.

META Stock Card

This initiative underscores Meta’s renewed focus on AI-driven wearables, leveraging its achievements in smart glasses while seeking to rival Apple and Google within an expanding industry.

Meta Plans “Malibu 2” Smartwatch Launch

The company is reportedly developing its inaugural smartwatch, codenamed “Malibu 2,” which will incorporate health-monitoring functionalities and an integrated Meta AI assistant. This marks the company’s initial endeavor to launch a smartwatch since an earlier project was halted in 2022 amidst wider expenditure reductions within its Reality Labs division.

The smartwatch is anticipated to manage notifications, fitness data, and other personal information, while the AI assistant could facilitate hands-free interaction with Meta’s ecosystem for users. Analysts view the integration of health features and AI capabilities as a potential strategy for Meta to distinguish its wearable device from those of its rivals.

Wearables Market Growth Fuels Meta Strategy

Meta’s re-entry into the smartwatch sector occurs as the company maintains its dominant position in the smart glasses market. According to Counterpoint Research, Meta secured more than 70% of worldwide smart glasses shipments in the first half of 2025, primarily propelled by Ray-Ban Meta smart glasses. Shipments experienced a 110% year-over-year increase, with AI-enabled glasses now accounting for 78% of all smart glasses dispatched.

EssilorLuxottica, Ray-Ban’s parent company, reported sales exceeding 7 million AI glasses last year—a significant rise from the 2 million sold throughout 2023 and 2024 combined. The triumph of AI-centric wearables strengthens Meta’s approach of incorporating sophisticated AI functionalities into consumer electronics.

AI Assistant Expansion Across Devices

The forthcoming smartwatch is projected to broaden the scope of Meta AI beyond smart glasses. By merging wearable notifications and health monitoring with AI functionalities, the company intends to make its assistant available across various device categories.

This could establish Meta as a more formidable competitor in the AI wearable market, providing a more comprehensive user experience. Watches could monitor physical well-being, while glasses offer visual and auditory input, ensuring the AI assistant is consistently accessible without requiring manual interaction.

Strategic Delays to Avoid Market Saturation

Meta is adopting a cautious strategy regarding its device introductions. The company has deferred the launch of its mixed-reality glasses project “Phoenix” until 2027 and temporarily halted the global deployment of Ray-Ban Display glasses owing to robust domestic demand and supply limitations.

By spacing out product introductions, Meta seeks to prevent consumer saturation while sustaining significant market interest in both smart glasses and the forthcoming smartwatch. Experts suggest that this deliberate pacing could assist Meta in preserving its competitive advantage within the progressively congested market.

Meta’s stock performance indicates a guarded optimism among investors who perceive the smartwatch launch as a strategic expansion into AI wearables. As the company constructs a wider ecosystem extending beyond social media, the 2026 smartwatch has the potential to become a foundational element in Meta’s vision for an AI-powered, interconnected device portfolio.