Meta (META) Stock; Inches Higher on Return to Smartwatch Market

TLDRs;

• Meta prepares “Malibu 2” smartwatch with health tracking and AI features, signaling renewed entry into wearables.
• Meta dominates smart glasses with AI integration, paving way for smartwatch launch in 2026.
• Meta AI to expand across watches and glasses, offering seamless hands-free user interaction.
• Meta delays some product launches to manage supply and prevent overwhelming consumers with devices.

Meta Platforms (NASDAQ: META) saw its stock inch higher on reports that the tech giant is preparing to re-enter the smartwatch market with a device set for 2026.

Meta Platforms, Inc., META

The move highlights Meta’s renewed push into AI-powered wearables, building on its success in smart glasses while aiming to compete with Apple and Google in a growing sector.

Meta Plans “Malibu 2” Smartwatch Launch

Meta is reportedly developing its first smartwatch under the code name “Malibu 2,” which will include health-monitoring features and a built-in Meta AI assistant. This represents the company’s first attempt at launching a smartwatch since pausing an earlier project in 2022 due to broader spending cuts in its Reality Labs division.

The smartwatch is expected to handle notifications, fitness metrics, and other personal data, while the AI assistant could help users interact with Meta’s ecosystem hands-free. Analysts see the combination of health features and AI capabilities as a way for Meta to differentiate its wearable from competitors.

Wearables Market Growth Fuels Meta Strategy

The return to smartwatches comes as Meta continues to dominate the smart glasses market. According to Counterpoint Research, Meta captured over 70% of global smart glasses shipments in H1 2025, driven largely by Ray-Ban Meta smart glasses. Shipments surged 110% year-over-year, with AI-enabled glasses now comprising 78% of total smart glasses shipped.

EssilorLuxottica, the parent company of Ray-Ban, reported selling more than 7 million AI glasses last year—up sharply from 2 million sold across 2023 and 2024 combined. The success of AI-focused wearables reinforces Meta’s strategy of integrating advanced AI features into consumer devices.

AI Assistant Expansion Across Devices

The planned smartwatch is expected to extend the reach of Meta AI beyond smart glasses. By combining wearable notifications and health tracking with AI capabilities, the company aims to make its assistant accessible across multiple device types.

This could position Meta as a stronger contender in the AI wearable market, offering a more holistic experience for consumers. Watches could track physical health, while glasses provide visual and audio input, keeping the AI assistant always available without the need for hands-on interaction.

Strategic Delays to Avoid Market Saturation

Meta is taking a measured approach to its device launches. The company has postponed the release of its mixed-reality glasses project “Phoenix” until 2027 and paused the international rollout of Ray-Ban Display glasses due to strong domestic demand and supply constraints.

By staggering product introductions, Meta aims to avoid overwhelming consumers while maintaining strong market interest in both smart glasses and the upcoming smartwatch. Experts note that this careful pacing could help Meta maintain its competitive edge in the increasingly crowded AI wearables landscape.

Meta’s stock movement reflects cautious optimism from investors who see the smartwatch launch as a strategic expansion into AI wearables. As the company builds a broader ecosystem beyond social media, the 2026 smartwatch could become a central pillar in Meta’s vision of an AI-driven, interconnected device lineup.

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