EssilorLuxottica Shares Drop 4.42% Midday Amid Google Pressure

EssilorLuxottica Shares Fall 4.42% to 289.80 Euros at Midday on December 9

EssilorLuxottica shares have fallen 4.42% to 289.80 euros at midday on December 9, with trading volumes representing 0.04% of the capital. This decline, following a previous close at 303.20 euros, marks a sharp halt in the stock's trajectory. The Franco-Italian group, a leader through its Ray-Ban brand via a partnership with Meta, faces imminent competition from Google, which is reportedly developing two models of glasses in collaboration with Samsung, Warby Parker, and Gentle Monster. This news heavily impacts a stock that has seen a weekly decline of 5.6% but still boasts flattering performances over three months (+10.61%) and one year (+25.67%), significantly outperforming the CAC 40 (+8.65% over one year). It is worth noting recent executive movements with two purchases totaling 1,500 shares for approximately 477,050 euros and a sale of 500 shares.

Technical Analysis Indicates Weakening Short-Term Momentum

Technically, the stock is now trading below its 50-day moving average, which stands at 303.01 euros, signaling a weakening of short-term momentum. The RSI at 39 points suggests a relative oversold zone without reaching extreme levels, hinting at a possible stabilization in upcoming sessions. A negative MACD histogram at -0.67 confirms this loss of bullish momentum that started several sessions ago. The stock is currently testing a major support level at 302.60 euros, which, if broken, could lead to a move towards the lower Bollinger bands at 299.38 euros. Volatility remains moderate at 4.83 over a month, reflecting a market that is digesting the information without excessive panic.

Sectoral Context Grows Complex with New Tech Announcement

The sectoral context is becoming more complex with this technological announcement that challenges EssilorLuxottica's privileged positioning in the smart glasses market. The group, which capitalizes on its exclusive partnership with Meta and the success of connected Ray-Bans, now faces a significant competitor with the Alphabet ecosystem. The Paris market also shows a negative tone with the CAC 40 down 0.48% at 8,069.61 points. Investors are adopting a wait-and-see approach, closely monitoring the Franco-Italian leader's ability to maintain its technological lead in the face of this announced competition. The 200-day moving average, positioned at 267.11 euros, remains well below the current prices, indicating an underlying trend that remains constructive despite this technical correction.