Meta Platforms (META) Opens Fifth Avenue Flagship Store to Boost AI Device Push

Meta Platforms META -0.63% ▼ is taking a new step in its retail push, as the tech firm moves deeper into in-person sales. The company has signed a long-term lease for a full building on Fifth Avenue in New York, one of the most high-cost retail spots in the U.S.

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Meta Expands Retail Footprint

Meta Platforms will open its first New York flagship store at 697 Fifth Ave., near the St. Regis Hotel. The deal is a 10-year lease with Vornado Realty Trust VNO +0.19% ▲ , and it gives Meta five floors in a prime area known for top-tier brands and heavy foot traffic.

This move builds on Meta’s early retail tests. The firm opened a Meta Lab store in Los Angeles last year, where users can try its AI glasses and virtual reality headsets. It also runs a store in Burlingame, California.

Moreover, the new site shows that Meta is willing to invest in direct sales and brand reach. Matt Jacobson, vice president and creative director of wearables at Meta, said, “We’re proud to make a long-term commitment to Fifth Avenue, the heart of U.S. retail.”

A Bet on Devices and AI

At the same time, the store pushes ties into Meta’s wider plan to grow its hardware line. The firm has put strong focus on AI-driven wearables, which it sees as a key part of its next phase.

Physical stores give Meta a way to show these tools in real use. That can help boost user trust and drive sales, as many buyers still want to test devices before they buy.

Meanwhile, the deal also adds to Meta’s large real estate base in New York. The company already leased the entire office space at the Farley Building in 2020, marking a major step in its U.S. hub plan.

In the broader market, New York retail has been on the mend since the pandemic. Supply in late last year was down 40% from the 2021 peak, based on data from CBRE Group Inc. CBRE -1.83% ▼ . Rents in the Plaza District, which covers part of Fifth Avenue, now reach $2,569 per square foot, the highest in the city.

Overall, Meta’s new store shows a clear shift toward real-world sales, as it looks to pair its AI and virtual tech with a direct link to consumers.

Is Meta Stock a Buy or Sell Right Now?

On the Street, Meta Platforms has a Strong Buy consensus view, based on 45 analysts’ ratings. The average META stock price target is $861.02, implying a 38.98% upside from the current price.

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