New York time check: It’s 12:39 p.m. ET on Friday, December 26, 2025.
Warby Parker Inc. (NYSE: WRBY) is having a rough ride in an otherwise calm, holiday-thinned market. As of early afternoon in New York, WRBY shares are trading around $24.79, down about $1.54 (roughly -5.8%) on the day, after opening near $26.06 and swinging between $26.51 (high) and $24.57 (low). Volume is elevated for a holiday session but still “thin” versus typical activity—exactly the kind of tape where moves can look louder than the underlying news flow.
The market backdrop: record-adjacent indexes, low liquidity, and the Santa Claus rally spotlight
Today’s trading has the feel of a “bridge session”—many desks are still lightly staffed, and liquidity can be patchy. Reuters reports U.S. indexes hovering near record highs in thin post‑Christmas trading, with the Santa Claus rally window (the last five trading days of the year and the first two of January) in focus through January 5. [1]
Market lore also points to December 26 as historically strong for stocks—Bespoke Investment Group data cited by MarketWatch notes it has been one of the most consistently positive days on the calendar when markets are open. [2]
That context matters for Warby Parker today: when the broader market is quiet, single‑stock moves often reflect positioning, profit‑taking, and year‑end rebalancing as much as (or more than) fresh fundamentals.
WRBY stock today: what the price action is saying (even if headlines are scarce)
There isn’t a single blockbuster Warby Parker headline driving a clean “cause → effect” narrative this afternoon. Instead, the tape suggests a more realistic cocktail:
- Post‑catalyst digestion: WRBY had a major story hit earlier in December (more on that below). Stocks often mean‑revert after hype-driven pops, especially into year‑end.
- Holiday microstructure: Thin liquidity can exaggerate swings in both directions.
- Crowded positioning risk: Warby Parker carries meaningful short interest—about 13.21 million shares short, ~15.28% of the public float, according to MarketBeat’s mid‑December snapshot. High short interest can amplify volatility (down and up). [3]
So while today’s drop looks ugly on the screen, investors should be careful about over‑reading a single holiday session—especially when the stock already spiked earlier this month on a major product narrative.
The big narrative investors are actually trading: Google + Warby Parker AI smart glasses (launch expected in 2026)
The “story premium” in WRBY lately has been tied to an ambitious partnership: Warby Parker and Google plan to launch AI‑powered smart glasses in 2026, Reuters reported earlier this month. The companies described lightweight, AI-enabled eyewear built on Android XR and Gemini, with concepts ranging from screen‑free assistance (audio/cameras/mics) to versions that include an in‑lens display for private info like navigation or translation captions. [4]
Warby Parker has also positioned this internally as a longer‑run product line rather than a one‑off gadget—its own “intelligent eyewear” page says the partners intend to launch products over time and that the first line is planned to launch after 2025, incorporating multimodal AI and both prescription and non‑prescription lenses. [5]
Why this matters for WRBY stock (and why the market is arguing about it)
This partnership forces investors to price two businesses at once:
- Warby Parker the eyewear retailer (stores, eye exams, contacts, repeat customers, margin discipline).
- Warby Parker the future wearable platform (new product category, potentially larger TAM, and a very different competitive set).
The second business is the exciting one—but it’s also where execution risk lives. Smart glasses are not a blank market; they’re a competitive arena with privacy and regulation questions baked in. Reuters’ reporting on the broader smart‑eyewear category highlights the tension well: “AI smart glasses raise significant privacy concerns,” said Kleanthi Sardeli of European digital rights group NOYB, pointing to transparency for bystanders and the use of personal data to train AI models. [6]
Translation: the Google partnership can be a real growth lever, but it also drags WRBY into the same scrutiny facing the category leaders.
Fundamentals check: Warby Parker’s Q3 2025 results showed faster growth and meaningful profitability progress
The “retail core” still pays the bills. In Warby Parker’s Q3 2025 results (reported November 6, 2025), the company delivered:
- Revenue:$221.7 million, up 15.2% year over year
- Active customers:2.66 million, up 9.3% (trailing 12 months)
- Average revenue per customer:$320, up 4.8%
- Net income:$5.9 million, improving by $9.9 million versus the prior year period
- Adjusted EBITDA:$25.7 million, with 11.6% adjusted EBITDA margin (up 2.6 points)
- Stores:15 net new stores in the quarter, ending at 313 stores [7]
Management framed the quarter as part of a “next act” driven by AI innovation, with Co‑CEO Neil Blumenthal pointing to momentum as the company steps into “innovation through AI.” Co‑CEO Dave Gilboa emphasized improving profitability and an ability to “take share in any environment.” [8]
Guidance: what Warby Parker told investors to expect for full‑year 2025
Warby Parker updated its 2025 outlook to:
- Net revenue:$871 million to $874 million (about 13% growth)
- Adjusted EBITDA:$98 million to $101 million (margin 11.3% to 11.6%)
- Store plan: on track to open 45 new stores, including five shop‑in‑shops at select Target locations [9]
A subtle but important detail: the company called out tariffs, contact lens mix, and shipping costs as factors pressuring gross margin, partially offset by selective price increases and higher penetration of lens enhancements. [10]
That’s not just accounting trivia—tariffs and shipping are exactly the kind of “quiet cost” pressures that can matter a lot for a consumer brand trying to scale profitably.
Target partnership: distribution expansion without abandoning the brand’s “own the customer” DNA
Warby Parker’s Target partnership is another underappreciated piece of the growth story because it bridges online strength with physical discovery.
Target’s own announcement said each “Warby Parker at Target” shop‑in‑shop will offer glasses, contacts, and eye care services consistent with Warby Parker’s omnichannel experience, with the first five locations opening in the second half of 2025 and more planned in 2026. [11]
Retail Dive’s year‑end store concepts roundup also notes additional locations expected through 2026, with Warby Parker staff running the concepts. [12]
For investors, the bull case here is simple: Target offers foot traffic and trial without Warby Parker having to fully “wholesale” its brand.
Wall Street forecasts: where analysts see WRBY going next
Analyst targets are not destiny, but they’re a useful map of market expectations—especially in a stock that’s trading partly on a long‑dated catalyst (AI glasses).
Here’s what current consensus snapshots show:
- MarketBeat (19 analysts): average 12‑month price target $26.75, with a $20–$35 range and a “Moderate Buy” consensus. [13]
- Benzinga (18 analysts): consensus price target $25.63, high $32 (Piper Sandler, Dec. 16, 2025), low $20 (UBS, Nov. 7, 2025). [14]
Recent analyst actions tied directly to the Google catalyst
Investing.com reports Piper Sandler lifted its price target to $32 from $22 while maintaining an Overweight rating, explicitly citing the Google AI glasses partnership and framing 2026 as a potentially “transformative” year. The same report notes BTIG raised its target to $32 from $25 (Buy), while Stifel raised to $25 from $19 (Hold). [15]
This is the key takeaway: even bullish analysts aren’t pricing WRBY like a moonshot—most targets cluster in the mid‑$20s to low‑$30s, which implies upside from today’s pullback but also acknowledges uncertainty.
What investors should watch before the next trading session
Because it’s currently midday in New York, the market is open right now. The NYSE core session runs 9:30 a.m. to 4:00 p.m. ET. [16]
Even so, there are two “next sessions” investors should be thinking about:
- The close today (4:00 p.m. ET): In thin markets, late-day flows and closing auctions can be disproportionately influential.
- The next regular session after the weekend (Monday, Dec. 29): Year‑end positioning can persist, and weekend news risk becomes a factor.
Here are the practical things to monitor:
1) Liquidity and follow‑through
If WRBY stabilizes and volume fades, today may end up looking like a post‑holiday air pocket. If selling persists into Monday with normal liquidity, investors may reassess whether the stock’s December AI-driven enthusiasm got ahead of itself.
2) Short interest as a volatility accelerant
With short interest around 15% of float, WRBY can move fast on relatively modest catalysts—earnings commentary, product updates, or even broader AI‑themed momentum. [17]
3) The next earnings date and what “proof” looks like
MarketBeat’s earnings calendar pegs Warby Parker’s next report around Feb. 26, 2026 (estimated, before market open), and Zacks lists the same date. [18]
For a stock priced on both retail execution and future wearables optionality, the market will likely want evidence on:
- core demand (revenue growth, customers),
- margin durability (shipping/tariff pressures),
- and any measurable progress on “intelligent eyewear” commercialization.
4) Insider sales headlines: context matters
A recent Form 4 summary indicates Warby Parker’s co‑CEO executed pre‑planned transactions (a Rule 10b5‑1 plan), including selling Class A shares around the low $30s earlier in December. Pre‑planned sales aren’t automatically bearish, but investors often react to the optics—especially after a rally. [19]
5) Macro mood: 2026 as a “prove-it year”
Zooming out, Reuters quoted Annex Wealth Management’s Brian Jacobsen warning that 2026 may be a “prove‑it” year—markets will want tangible productivity and margin gains from AI investment across corporate America. [20]
That lens applies to WRBY in miniature: the AI glasses story can lift valuation, but eventually the market asks the annoying grown‑up question: show me the unit economics.
Bottom line
At 12:39 p.m. ET on Dec. 26, Warby Parker stock is down nearly 6% in a low-liquidity, post‑Christmas session—even as the broader market hovers near record territory. [21]
The company’s fundamentals have improved (Q3 showed accelerating revenue growth and real profitability progress), and the Google smart glasses roadmap to 2026 gives WRBY a legitimate “second narrative” beyond being a retailer. [22]
References
1. www.reuters.com, 2. www.marketwatch.com, 3. www.marketbeat.com, 4. www.reuters.com, 5. www.warbyparker.com, 6. www.reuters.com, 7. files.quartr.com, 8. files.quartr.com, 9. files.quartr.com, 10. files.quartr.com, 11. corporate.target.com, 12. www.retaildive.com, 13. www.marketbeat.com, 14. www.benzinga.com, 15. www.investing.com, 16. www.nyse.com, 17. www.marketbeat.com, 18. www.marketbeat.com, 19. www.stocktitan.net, 20. www.reuters.com, 21. www.reuters.com, 22. files.quartr.com
