Warby Parker (WRBY) Rose Following the Partnership Announcement with Google

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 11.28% (gross) and 11.02% (net), compared to the Russell 2000 Growth Index by 11.97%. Equities posted double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital Small Cap Growth Strategy highlighted stocks such as Warby Parker Inc. (NYSE:WRBY). Incorporated in 2009, Warby Parker Inc. (NYSE:WRBY) provides eyewear products. The one-month return of Warby Parker Inc. (NYSE:WRBY) was 0.60%, and its shares gained 88.09% of their value over the last 52 weeks. On September 10, 2025, Warby Parker Inc. (NYSE:WRBY) stock closed at $27.01 per share, with a market capitalization of $3.294 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Warby Parker Inc. (NYSE:WRBY) in its second quarter 2025 investor letter:

“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, or premium brands. Warby Parker Inc. (NYSE:WRBY) is a retailer of eyewear to consumers through its brick-and-mortar stores and its online platform. During the quarter, the company announced a partnership with Google to develop AI-powered glasses. The partnership combines Warby Parker’s approach to eyewear design with Google’s technology ecosystem. That served to lift the stock by 22%.”

Was Jim Cramer Right to Be Cautiously Bullish on Warby Parker (WRBY) Last Year?

Warby Parker Inc. (NYSE:WRBY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Warby Parker Inc. (NYSE:WRBY) at the end of the second quarter, which was 38 in the previous quarter. Warby Parker Inc. (NYSE:WRBY) reported strong results in Q2 2005, with revenue increasing 14% year-over-year. While we acknowledge the risk and potential Warby Parker Inc. (NYSE:WRBY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Warby Parker Inc. (NYSE:WRBY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Warby Parker Inc. (NYSE:WRBY) and shared Riverwater Partners Small Cap Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.