Walmart Shares Drop 6%: What Happened to the AI Glasses Hype?

Warby Parker Inc. (WRBY) Share Price Drops 6.04% on January 12

Warby Parker Inc. (WRBY) closed at $26.58 on the New York Stock Exchange on January 12, down 6.04%. About $160 million in market capitalization evaporated in a single day. After a sharp rally since December—fueled by AI-powered eyewear momentum and “top-pick” recommendations from sell-side firms—the stock has run into overheating concerns and a wave of insider selling.

Rapid Rally Fueled by AI Collaboration and Analyst Upgrades

• In December, news of a Google collaboration on AI-enabled glasses sent WRBY shares soaring over 60%, reaching a 52-week high.
• Several brokerages raised their price targets from the mid-$20s to around $30:
  • TD Cowen
  • BTIG
  • Piper Sandler
  • Loop Capital (which also named WRBY a 2026 “Top Pick”)
• Heavy call-option buying added fuel to the short-term rally, prompting some analysts to warn of overheating.

Valuation Concerns Mount

According to Simply Wall St, Warby Parker’s price-to-sales ratio stands at roughly 3.9×—far above the ~0.5× average for specialty retail peers and well above its own “fair” multiple of 1.6×. The premium suggests the stock has outpaced both the AI theme and the bullish analyst narrative. Only a successful AI-glasses launch and sustained high growth can justify the current valuation.

Insider Selling Raises Red Flags

In early January, co-founders and other executives sold shares, followed by additional sales from the CEO and board members. While insider selling does not necessarily undermine long-term prospects, the timing—immediately after a steep rally—was widely viewed as profit-taking rather than a sign of confidence in future upside.

Outlook: Execution and Data Will Drive the Next Move

The 6% pullback reflects a necessary pause after the AI-glasses rally. The growth story—AI wearables and brick-and-mortar expansion—remains intact, but lofty valuation, insider sales and rapid gains have left WRBY’s share price catching its breath. Investors will be watching Google’s AI-glasses rollout schedule and initial sales figures to see whether they can catch up with the current valuation or drive a further reset in the stock’s premium.