Despite the interest from tech giants, EssilorLuxottica's financial performance has been underwhelming, with its stock price only increasing by about 7% in the past year. This is due to a combination of global inflation and higher costs negatively impacting the company's profit margins. The potential investment from Meta, led by Mark Zuckerberg, could be a strategic move to secure a high-profile partnership amidst competition.
Key takeaways:
- Meta is in advanced negotiations to buy approximately 5 percent of EssilorLuxottica, a European eyewear conglomerate.
- Google has also shown interest in EssilorLuxottica, with plans to integrate its Gemini AI assistant in future smart glasses.
- This competition could be driving the large investment that Meta's Mark Zuckerberg is preparing to make.
- Despite being a fashion and retail conglomerate, EssilorLuxottica has been struggling with global inflation and higher costs, which have been impacting its profit margin.