Shares of Unity Software climbed more than 5% in after-hours trading on Wednesday, while Meta Platforms rose roughly 1% to 3%, after Meta’s Connect 2026 conference delivered a broad slate of AI, wearable, and virtual reality hardware announcements. Unity’s move extended a rally that has lifted the stock more than 140% over the past six months.
Meta CEO Mark Zuckerberg used the event to unveil the Meta VR Glasses, priced at $1,299 and scheduled to launch in spring 2027. The device was described by early commentators as an Apple Vision Pro-like experience in a much smaller and lighter form factor: roughly 100 grams, with Micro-OLED displays, Snapdragon Reality Elite silicon, eye and hand tracking, and external compute with battery. Zuckerberg also introduced new Ray-Ban products and detailed the company’s "personal superintelligence" strategy.
Unity does not make hardware, but its software engine is central to VR development. The company says more than 70% of the top-selling VR games on the Meta Store were built with Unity tools. In April 2026, Unity and Meta extended a multi-year platform support and enterprise agreement, and Meta has deepened the technical relationship through the Meta XR Unity MCP Extension, which lets developers use AI agents to create and edit Meta VR scenes directly inside Unity. The market reaction suggests investors expect more Meta hardware to drive more Unity-based VR development.
Beyond the Unity angle, Meta also announced new Muse AI agent features and retail partnerships. Users will soon be able to talk to Muse through smart glasses instead of typing, and a wearable pendant version called Muse Charm is expected later this year. Meta said Muse shopping partnerships with Walmart, Best Buy, Dick’s Sporting Goods, and Gap will let users shop directly through the AI agent without leaving the app.
Wall Street responded with a series of price target increases. JPMorgan raised its Meta target to $920 from $820, saying Muse could become the most widely used consumer AI app since ChatGPT. Morgan Stanley kept an Overweight rating and a $775 target, citing Meta’s 81.75% gross profit margin as room to keep transaction fees low. Cantor Fitzgerald lifted its target to $860 from $680, and KeyBanc raised its target to $900 from $780. Analysts also flagged Amazon as a name to watch next, suggesting that Walmart’s move increases the odds Amazon joins once terms are settled.
Meta also showed off camera-free audio-only smart glasses and confirmed that its $1,299 VR headset will carry 3D content partnerships with Amazon Prime Video and Disney’s ESPN. Still, some caution remains: InvestingPro’s models suggest Meta stock may be overvalued at current levels, and terms on some retail deals remain unsettled, including data sharing, merchant of record status, and loyalty program integration.
For Unity, the latest stock move builds on fundamental improvement. Unity launched its Vector AI platform in late March 2026 to improve mobile advertising and game monetization, and the company raised its revenue outlook. In the second quarter, Unity reported $546 million in revenue, up 24% year-over-year, and an adjusted loss of $0.05 per share, narrower than the $0.11 loss analysts had expected. The stock carries a Strong Buy consensus rating based on 15 Buy ratings and three Hold ratings over the past three months, with an average analyst price target of $48.69, implying roughly 10% upside.
